According to the Financial Industry Regulatory Authority (FINRA) By-Law, Article III, Section 4, filing for bankruptcy is not an event that would disqualify an individual from being associated with a FINRA member firm.
Some states are more restrictive than others. According to Attorneys Worwag and Malysz of Des Plains, Illinois, since all individuals are entitled to bankruptcy relief, professional licenses, such as those held by CPAs, real estate agents, and medical According to the Financial Industry Regulatory Authority (FINRA) By-Law, Article III, Section 4, filing for bankruptcy is not an event that would disqualify an individual from being associated with a FINRA member firm.
Some states are more restrictive than others. According to Attorneys Worwag and Malysz of Des Plains, Illinois, since all individuals are entitled to bankruptcy relief, professional licenses, such as those held by CPAs, real estate agents, and medical and legal professionals, should be unaffected by a bankruptcy filing. Only individuals licensed to give financial advice may be denied the renewal of that license in Illinois.
At the end of the day, it is up to the individual brokerage house or investment company to decide whether a broker that files for protection under the bankruptcy code is an asset to the firm or whether the situation places the integrity of the firm in question.