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IM-1011-3. Business Expansions and Persons with Specified Risk Events

The safe harbor for business expansions in IM-1011-1 is not available to any member that is seeking to add a natural person who has, in the prior five years, one or more final criminal matters or two or more specified risk events and seeks to become an owner, control person, principal, or registered person of the member; in such circumstances, if the member is not otherwise required to file a Form CMA in accordance with Rule 1017, the member must comply with the requirements of Rule 1017(a)(7).
Adopted by SR-FINRA-2020-011 eff. Sept. 1, 2021.

Selected Notice: 21-09.