
Quoting
I'm considering filing for bankruptcy. Would FINRA rules prohibit me from obtaining a securities license and working for a broker-dealer if I file for bankruptcy?
Answer: No. FINRA By-Law, Article III, Section 4 outlines events that would disqualify an individual from being associated with a FINRA member firm. However, filing for bankruptcy is not one of them.
Information on "disqualifying" events and for steps that members can take to sponsor the proposed association with a disqualified person is available on our Web site. Bankruptcy filing is required to be disclosed on the Form U4 (see Item 14K on Form U4), and this information is publicly available upon request through FINRA BrokerCheck.
Many of the answers in our FAQ database were created prior to the consolidation of NASD and NYSE Member Regulation into the Financial Industry Regulatory Authority (FINRA). FINRA is currently working toward a single, consolidated rulebook. We will also update our FAQ database. In the interim, the information provided - and rule(s) cited - in this FAQ refer to the NASD rulebook. Firms that were dually registered with NASD and NYSE Regulation prior to the consolidation should carefully consider whether similar NYSE rules apply.