The approvals concern the content of the Form U4 Uniform Application for Securities Industry Registration or Transfer and the Form U5 Uniform Termination Notice for Securities Industry Registration , as well as interference with account transfers in connection with departing registered representatives. Previously, Forms U4 and U5 required member firms to report allegations of sales practice violations that were made against a registered person in a civil lawsuit or arbitration only when the registered person was actually a named party. If, for example, the member firm was named as a respondent and the registered representative was only identified in the body of the Statement of Claim, no reporting was required. State securities regulators in particular were concerned that large settlements were occurring without identifying the individuals who were responsible for the alleged misconduct.
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The answers to these questions are general in nature not state specific , are not intended as a comprehensive review of this topic and do not include or account for all of the exceptions or variances involved in filing a Form U4 to register an individual as an investment adviser representative of a registered investment advisor firm. An individual not currently registered with an investment advisor firm or broker-dealer will utilize the Form U10 online to open a Series 65 examination window; an individual currently registered with an investment advisor firm or broker-dealer will open the Series 65 examination window by submitting the Form U4.
In the event that the individual seeking to register as an investment adviser representative is also starting a state registered investment advisor firm, the Form U4 is often submitted at the same time the Form ADV and other registration documents are submitted to the state securities regulator since most state securities regulators require an investment advisor firm to have at least one individual registered as an investment adviser representative.
Yes, there are a few states such as New York and Wyoming that do not register individuals as investment adviser representatives and therefore do not require the filing of the Form U4. An investment advisor firm should consult the particular investment adviser representative rules of the securities regulator s in any state where the representative will conduct business. The following is a list, not necessarily in order of the form, of information that needs to be provided by the investment adviser representative when completing a Form U Although most state securities regulators do not require an investment adviser representative only applicant to submit fingerprint cards, the state securities regulators for Alaska, Arizona, District of Columbia, Georgia, Florida, Indiana, Maine and Ohio require fingerprint cards when registering as an investment adviser representative.
In order to confirm whether a fingerprint card is required, an investment adviser representative applicant should review the most recent investment adviser representative registration requirements published by the applicable state securities regulator where he or she is requesting registration. Whenever there is a material change to information that should be disclosed on the Form U4, the investment adviser representative has an obligation to update promptly that information.
Typically, this means filing an amended Form U4 within 30 days of the material change. Failure to do so can lead to fines, suspensions, or even being barred from acting as an investment adviser representative. Not providing proper disclosure for any information on the Form U4 may result in various sanctions including, but not limited to, fines, suspensions, or even being barred from acting as an investment adviser representative.
If the answers to any disclosure questions i. Each category of items listed above has a unique DRP page asking for particular details of the disclosure event. Certain disclosure events will require multiple DRP updates. For example, when a matter arises i. The new investment advisor firm that the investment adviser representative joins will file a Form U4 registering the individual as an investment adviser representative of the new investment advisor firm. There may be application fees associated with registering with the new investment advisor firm.
The published information about the investment adviser representative is obtained through Form U4. Both the investment advisor firm and investment adviser representative are required to ensure the information on the Form U4 is accurate and up-to-date. Investment advisor firms must use the Form U5 to terminate with a state securities regulator the registration of an individual serving as an investment adviser representative. Frequently Asked Questions Form U4.
What is a Form U4? Are there state securities regulators that do not require filing a Form U4 for registration of an Investment Adviser Representative? Do state securities regulators require an individual applying to register as an Investment Adviser Representative to submit a fingerprint card? What happens to the Form U4 if an Investment Adviser Representative leaves a registered investment advisor firm and starts at another investment advisor firm?
Form U4 | Practical Law
The U4, also known as the Uniform Application for Securities Industry Registration or Transfer, is the predominant vehicle by which regulatory bodies FINRA, the states, and exchanges screen candidates for registration and registered folks for new or continued registration. It contains personally identifiable information about each applicant such as name, SSN, physical characteristics, address history, work experience, and education. Beyond these basics, applicants are required to self-report information relating to customer complaints, arbitration claims, regulatory proceedings, bankruptcies, certain criminal history, certain civil litigation and liens, and judgments, etc. This Bylaws section grants folks up to 30 days to amend their Form U4 after learning of the facts giving cause to make an amendment, but if the amendment involves a statutory disqualification, then it must be filed within 10 days, as opposed to 30 days.
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