Disclosure of Reps Felony Convictions Under Discussion
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In response to some privacy concerns raised by brokers and the industry, the NASD is asking for comment on whether brokers non-investment-related felony convictions should be disclosed via the Internet.
The issue is heating up as the NASDR gets set to disclose on-line brokers disciplinary histories later this year or early next year.
In August, the NASD Board of Governors approved release of a notice to members (NTM) asking for comment on the issue. The notice was not available at press time, but an NASDR spokesperson said the NTM would be out by the end of August or early September and be posted at the NASDRs Web site at www. nasdr.com.
The spokesperson says one problem is that some reps may have felony convictions on their records that arose from youthful indiscretions. These convictions may be decades old and have nothing to do with a brokers integrity. Whats more, similar offenses may be categorized in one state as a felony and in another state as a misdemeanor, the spokesperson adds. Non-investment-related misdemeanors do not go on the CRD.
Investment-related felony convictions such as embezzlement, forgery, fraud related to investment products, conversion, larceny, counterfeiting, misappropriation or substantially equivalent activity would continue to be disclosed on the CRD, the NASD says.
