Checklists for Mandatory Materiality Consultations Under Rule 1017(a)(6)&(a)(7)

The following checklists are intended to assist a member firm when it is required to submit a materiality consultation under FINRA Rules 1017(a)(6) and 1017(a)(7). Per Rule 1017(a)(6), a member must submit a letter requesting a materiality consultation for specified changes in ownership, control, or business operations, including business expansions, involving a defined “covered pending arbitration claim,” unpaid arbitration award or unpaid settlement related to an arbitration. Per Rule 1017(a)(7), a member must submit a letter requesting a materiality consultation whenever a natural person seeking to become an owner, control person, principal or registered person of the member firm has, in the prior five years, one or more defined "final criminal matters" or two or more "specified risk events" and the member is not otherwise required to file a Continuing Membership Application (Form CMA). Members also viewed Broker-Dealer Continuing Membership Application (CMA) Preparation & Filing Checklist.

Version/Update: V.U/June 2024

Total Page Count/Format 4/.pdf

Source/Author(s): FINRA