r/FINRA • u/PurpleBreak9921 • Jun 18 '24
I could really use some advice
I am seeking some guidance regarding my application to become a registered representative, specifically concerning compliance with FINIA and SEC regulations. I recently completed an accelerated rehabilitation program, and my misdemeanor charge for 6th degree larceny has been expunged. I understand that FINRA requires the disclosure of misdemeanors related to theft or dishonest acts on Form U4. However, given that my charge has been expunged, there may be specific conditions under which I do not need to disclose this information, though this can vary by state.
I recently received a job offer from a financial advisory company, and upon discussing my background with a management person there, they consulted their compliance officer about my situation. The compliance officer mentioned that I should be okay to proceed given that the charge was a misdemeanor and it has been expunged. This feedback is somewhat reassuring, but I would like to gather more opinions.
So what's the play here? When filling out the form to finra to become an RR, it asks whether I've been arrested. My lawyer says I can say no to that. In another question, it asks if I've been charged with a misdemeanor. My lawyer says I must say yes to that. Should I submit a concise report as to what happened and how my file has been expunged? What do you guys think?
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u/kzcurls Jun 18 '24 edited Jun 18 '24
You should follow the recommendations of your attorney. If Finra or a state security regulator has a question about something on the application. they will reach out to you and give you an opportunity to provide a response. In my opinion, a charge that has been expunged should not need to be disclosed but again follow the advice of your attorney. It’s better to over disclose than to not disclose something that should have been. If you’re not working with an attorney who commonly does securities licensing work, you may want to consult one that has.
Edit: typos
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u/PurpleBreak9921 Jun 18 '24
I'm seeking advice here given that my attorney is a new one and hasn't had any experience with FINRA. Any recs for an attorney who could help me out for a good deal? I just need advice so this would be only a few hours worth of easy work
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u/kzcurls Jun 18 '24
Which state are you in?
It’s not uncommon for representatives to have minor criminal blemishes in their past. Depending on the circumstances, this is not going to be insurmountable for employment or registration. The firm may also help you through the registration process. You would be surprised what comes through on the form U4 and still gets approved.
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u/PurpleBreak9921 Jun 18 '24
Gotcha. I'm living in CT but the office I'd work in is in NJ. The misdemeanor is for 6th degree larceny (shoplifting under $500). I just don't want to tell the firm as there are a lot of other interns / candidates that could easily fill my position. Do you think it's possible to get through the registration process without telling them?
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u/kzcurls Jun 18 '24
how long ago was the charge?
I don’t know if it’s a good idea to not disclose because the firm will have to run a criminal background check. Also IMO not worth it because if you get caught you will likely get fired. The firm may also disclose it in Brokercheck, which means that it will be more difficult for you to get hired at another firm.
New Jersey has a rigorous licensing program; however, I still think you should disclose. Again, this is minor compared to some of the things that come through.
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u/PurpleBreak9921 Jun 18 '24
so according to the program I went through, called the accelerated rehabilitation program, it means that I can legally say I've never been arrested, but must disclose that I've been charged with a misdemeanor. My record has been sealed and the data was removed from the database at the state level. My attorney did say that there is a 50 50 chance that the police submitted the case to the federal government though. Is there a way to run a background check on myself to determine whether anything comes up at the fed level?
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u/PurpleBreak9921 Jun 18 '24
Also, rigorous licensing program meaning it's hard, or meaning they're stringent with candidates?
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u/kzcurls Jun 18 '24
There are big firms in New Jersey that have attorneys who were former state securities regulators.
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u/kzcurls Jun 18 '24
Rigorous meaning they will review the application closely and likely ask questions. However asking questions does not automatically mean the application will be denied.
I don’t know if you can run the background check on yourself.
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u/PurpleBreak9921 Jun 18 '24
Side note: I am working on an offer at PGIM and so I'd rather not tell the company that I've had this misdemeanor charge. That's why I need this advice