How advisers can avoid Finra scrutiny over personal liens, judgments, or bankruptcies, InvestmentNew’s Outside-IN

Posted Apr 21, 2015

While disclosures of negative personal financial events are not pleasant, the consequences of not making them can be severe

By Gregg Breitbart, Esq.
(April 21, 2015)

You’re a financial adviser with a clean record and a solid book of business. Unfortunately, along the way, you had some personal tax issues and, despite your best efforts to resolve them, the Internal Revenue Service filed a series of tax liens in an attempt to collect the debt. Or perhaps you “overbought” your last home and had to let it go in a non-recourse short sale.

Not pleasant, but certainly not career-threatening, right?

The short answer is, “it depends.” Did you report the tax liens or the “compromise with creditors” to your firm’s compliance department in a timely manner, and make sure that they updated your Form U-4 accordingly? If not, your professional life may be about to change, and not in a good way.

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