Disclosure Questions
All Disclosure Questions must be answered. Any Yes response requires an explanation to be provided in the Disclosure Explanations section. A single PDF file can be uploaded with any applicable documentation.
Applicants and licensees should refer carefully to the Policy Guide Explanation of Terms section of the instructions when answering these questions.
All Disclosure Questions must be answered.
State regulators require licensees and applicants to explain events that must be disclosed through a Yes response to any of the existing Disclosure Questions. Any Yes response requires an explanation.
A single PDF file can be uploaded withany applicable documentation. The regulator will be able to review the explanation and documentation.
A separate explanation should be provided for each event related to a disclosure question. A single PDF to be uploaded to support of the explanation. The PDF must contain relevant official documentation pertaining to the explanation (e.g.,a finding issued by a state regulatory agency, a court order, civil judgment).
Multiple explanations may be provided if multiple events are related to a single question.
An optional explanation can be provided for a No response.
If an individual needs to upload an explanation in connection with a No response, they can do so in the Disclosure Explanations section that follows each category of questions (e.g., civil disclosure, criminal disclosure).
Consult Providing Disclosure Explanations (Company) Disclosure Explanations - Document Uploads (Individual) for additional information.
Some states may require companies to provide an explanation and/or supporting documentation for previous Yes responses. Consult state specific licensing requirements for this information
Individuals are required to update their Disclosure Questions when circumstances change in accordance with state law or within 30 days, whichever is shorter. This includes answers that are changed from Yes to No. A change in response requires an update to the Disclosure Explanations section.
Foreclosure
For purposes of individual disclosure questions, any foreclosure action that has been initiated, regardless if the action is considered final, must be disclosed.
Regulatory and Civil Judicial
Individuals must respond affirmatively to certain disclosure questions if they relate to activities that occurred while that individual exercised control over the organization. Individuals exercising control over companies who in the normal course of business face multiple regulatory or civil actions must respond affirmatively to the appropriate questions.
An explanation stating this fact is required and further details related to a specific action(s) may be required, including supporting documentation. Consult state licensing requirements to verify what information is required to be submitted.
Difference between K4 and K9
K(4) is asking if an order was issued against the individual that involved a financial service related activity, regardless of whether a license or registration was held or required.
K(9) is asking if an order was entered specifically regarding a license or registration or the requirement to be licensed or registered.
"Order" is a written directive issued pursuant to statutory authority and procedures, including orders of denial, suspension, or revocation; it does not include special stipulations, undertakings or agreements relating to payments, limitations on activity or other restrictions unless they are included in an order. Orders include temporary and permanent Cease and Desist Orders.
Not all denials of a license are the result of an order. This may vary state to state.
Criminal
Disclosure of a sealed or expunged conviction or item is not required if relevant state law or a court order does not require or prohibits disclosure.
Disclosure of a felony or misdemeanor case disposed of in juvenile court is not required if relevant state law or a court order does not require or prohibits disclosure.
Separate explanation should be provided for each event related to a disclosure question. Each explanation allows a single PDF to be uploaded in support of the explanation. It is expected that the PDF contain relevant official documentation related to the explanation (e.g., finding issued by a state regulatory agency, a court order, civil judgment). Multiple explanations may be provided if multiple events are related to a single question.