Open examinations that are deemed as formal investigations involving regulatory or criminal matters. Before individuals can work in the securities industry, they undergo training and must successfully complete qualification examinations. As part of the registration process, these candidates answer a number of questions about their background and prior employment, including any details about criminal, regulatory, or judicial actions involving securities matters. Individual registrants must also report recent consumer-initiated complaints. Individuals who have met all the qualification, regulatory, and reporting requirements are eligible to conduct securities business with the public.
Today there are over a half-million persons actively registered.
Approximately 90 percent of these securities industry professionals have no reportable incidents. First, when evaluating the information in the PDP report, please be reminded that a number of items involve pending actions or allegations that may be contested and have not been resolved or proven. The items may, in the end, be withdrawn or dismissed, resolved in favor of the broker, or concluded through a negotiated settlement with no admission or conclusion of wrongdoing. Also, remember that the information in the PDP report is not the only resource an investor should consult, and NASD Regulation encourages you to learn as much as possible about brokers and firms from all sources. Ask the broker for references.