Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

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How long does statutory disqualification last?

5 years
10 years
15 years
20 years

The correct answer is: 10 years

Statutory disqualification refers to a situation where a member of a financial industry, such as a broker-dealer, becomes ineligible to participate in the industry due to specific regulatory reasons. These can include conviction of a crime, violation of securities laws, or certain types of conduct. The duration of statutory disqualification typically lasts for a period of 10 years. This is significant because it reflects the regulatory framework aimed at maintaining the integrity of the financial industry. After this period, individuals may have the opportunity to apply for reinstatement, depending on their circumstances and behavior during the disqualification period. The other choices reflect longer timeframes that do not align with the regulatory standards set by entities like the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). Understanding the specific length of statutory disqualification is critical for compliance and for individuals seeking to reintegrate into the financial services industry after facing these issues.