Series 7 Questions???

Discussion in 'Prop Firms' started by ANCHOR, Aug 9, 2002.



    Earlier this year I was hired by an investment firm as an financial planner. My first priority after I got the job was to get my series 7 license. A couple days after I started to study for my test I was told (by someone at the firm who hired me) that I would not be able to get a series 7 license. He said that this was due to the fact that I had very bad credit and I had written a bounced check a couple years earlier. I was also involved in a business with a partner. After investing 10,000 dollars in the business my partner screwed me and I was left severally in debt. I found the only thing I could do was file bankruptcy.

    So my question is, am I still able to get a series 7 license? I have bad credit, I have a bankruptcy on my record (I know that this will make the license cost more), and I am still making some late payments to the IRS. The test itself I find easy buy some people have told me that I am no longer qualified to get a series 7. Is this true?

  2. Anchor-
    that may in fact be true....but I would check with the NASD to be sure. I have heard of people not being able to get a 7 because of bancruptcy....if you're convicted of cocaine distribution , no problem, but money issues yeah..its a problem.

    to be sure check
    might be able to find yor answer there.
    good luck


    Okay I will check that site out. The guy at the firm told me flat out that any arrest, of any kind, for any law breaking would prevent me from being able to get a series 7. He said that bad credit, any bounced checks, bankruptcy, or being convicted for any crime would prevent me from being able to get a series 7. Was this guy just pulling my chain or is this true?

    I have the papers that you have to fill out to get the your series 7 and it does ask questions about bankruptcy but I just says that if you have a bankruptcy the license will cost more. I don't mind having to pay more I'm just not sure if I can still get the license.
  4. MrDinky


    Man, that sucks! You'd think the people who went through bankruptcy would need a break on the price.

  5. LelandC


    I have never heard one's credit rating deciding whether or not you can get a series 7. How can they hold an arrest against you? I can see maybe a felony but what about misdeameanors (if that part is true)?



    That's what I'm talking about. How could stuff like this be held against you? And bounced checks. I think this guy was just didn't like me and he wanted me to leave.

    I don't know.
  7. I don't know about bankruptcy, but I know licensed traders who have very bad credit! I do not believe that bad credit, especially absent bankruptcy, would prevent you from getting your license.
  8. I have a Series 7. The bankruptcy should NOT disqualify you from taking the exam. Some of the exchanges will not let you be a member if you have filed in the last 3-5 years, but this is subject to challenge. Bad credit won't disqualfy you from taking the exam, as I understand it.

    My advice is as follows:

    1) Talk to your bankruptcy lawyer. There is a general principal that bankruptcy law superseds most other federal and state laws.
    This is important because there is a provision in the law about
    employers not being able to fire you because you have filed for bankruptcy. It sure seems yours is going to or has already done so.

    2) Crimes of "moral terpitude" will bar you from being licensed for a period of time--I think it's ten years after conviction. Moral terpitude includes things like financial fraud. Strangely, I think the legal definition is not what it appears to be. I think rape is not considered a crime of moral terpitude. I know of a case where the PHLX was required to accept for membership someone convicted of rape.

    Again, your starting point is your bankruptcy lawyer---unless, of course, you haven't paid him either.
  9. swing


    Your firm probably just found out about your financial problems. Doesn't seem right to prevent you from taking the series 7. You can still join a trading firm that will "sponsor" you. (You will need to pay the fee + study material. Fee is $200)
  10. swing


    By the way, that test is one the hardest. Study well.
    #10     Aug 11, 2002