Currently one of my friend is working at brokerage firm and every year employees are given with set of compliance questions as a mandatory training which needs to be completed. Unfortunately, my friend who is an employee of the firm has misdeamenor in his history (he didnot updated to the brokerage firm compliance team as he was worried about his job position) and now he has to face the compliance training questions which are mandatory.
I would like to know, what happens if he gives a false information to those compliance questions? For ex: the question is something like this.
Have you had misdeamenor or felony in this past year?
Answer: If we give No to the above question, what happens?
Whether the firm does a revalidation/crosscheck/background check of all the answers provided by the employees of the company? Please answer if anyone of you know, or direct me to the right forum/group if this is not the right place...Friend is worried and tensed what to answer, whether he should agree and disclose what had happen or answer No and wait with his fingerscrossed?