Question about a Department of Insurance Regulatory Event and U4

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not_applicable's picture
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Joined: 2008-05-28

If a person receives a Stipulation and Consent Order from a State Department of Insurance (RE: Insurance product, non-variable related), it is required that this is reported on FINRA's form U4.  When the person updates there U4, will FINRA open there own investigation to fine and repremand that person all over again?

not_applicable's picture
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Joined: 2008-05-28

Any one out there have any experience on this topic?

not_applicable's picture
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Joined: 2008-05-28

Rrbdlawyer,

Any chance we can get your expert opinion on this subject?

Thank you in advance, if you choose to post a response...

stockattorney's picture
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Joined: 2010-09-09

Over the last 5 years FINRA has increased their efforts to reviewing all adverse disclosures.  Chances are that since your disclosure is not securities related or not related to a fraud, forgery or theft then FINRA may probably pass.  It's not common for FINRA to double team a rep when a state is handling it, unless FINRA determines that the state is too lenient.

not_applicable's picture
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Joined: 2008-05-28

Is there a statute of limitation on the timeframe a Department of Insurance has to act/file a case when they receive a complaint or termination for cause?

not_applicable's picture
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Joined: 2008-05-28

Is there a statute of limitation on the timeframe a Department of Insurance has to act/file a case when they receive a complaint or termination for cause?

stockattorney's picture
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Joined: 2010-09-09

Possibly.  Depends on the state and alleged violation of a statute or regulation.

not_applicable's picture
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Joined: 2008-05-28

Where could this information be found?

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