What type of list is maintained for persons with trading bans or penalties?

What type of list is maintained for persons with trading bans or penalties?

• A. Public Disclosure List
• B. Disciplined Persons List
• C. Misconduct Reporting List
• D. Enforcement Actions List

Answer: (B)

The correct answer is the Disciplined Persons List, as this list specifically comprises individuals who have been subjected to trading bans or penalties due to violations of regulatory or professional standards. This enables regulatory bodies and the public to monitor individuals who have a history of misconduct, ensuring transparency in the financial markets and maintaining the integrity of trading practices.

The Disciplined Persons List serves as a tool to inform both current and potential clients, as well as other market participants, about individuals who may pose a risk to market fairness and compliance with established rules. It reflects the consequences of improper conduct, thereby acting as a deterrent for similar behaviors in the future.

Understanding the specific purpose of this list clarifies its role in the broader regulatory framework aimed at ensuring responsible trading practices and protecting investors.