Common use of Disciplinary Action, Suspension, or Restriction Clause in Contracts

Disciplinary Action, Suspension, or Restriction. If Introducing Firm or any of its affiliates, or any officer, director, or general securities principal or financial and operations principal of Introducing Firm, becomes subject to suspension, restriction or disciplinary action by a federal or state agency, stock exchange, or regulatory or self-regulatory organization having jurisdiction over Introducing Firm or Introducing Firm’s securities or commodities business, Introducing Firm shall give notice to Clearing Agent promptly, orally and in writing, and provide Clearing Agent a copy of any decision relating to such suspension, restriction or disciplinary action. Clearing Agent may take any action it reasonably deems to be necessary (i) to assure that it will continue to comply with all applicable legal, regulatory, and self-regulatory requirements, notwithstanding such, suspension, restriction or disciplinary action; and (ii) to comply with any requests, directives, or demands made upon Clearing Agent by any such federal or state agency, stock exchange, or regulatory or self-regulatory organization. Notwithstanding the foregoing, Introducing Firm need not notify Clearing Agent of “minor rule violations” (as that term is defined in connection with Form U-5) of individuals, with the exception of directors, general securities principals, financial principals, operations principals and individuals listed on Schedule A of Introducing Firm’s Form BD.