Form U4

A registered representative becomes the subject of a reportable event. Who actually submits the Form U4 amendment, and what is the representative's own duty?

1. A.FINRA submits the amendment on its own initiative once it learns of the event from public records.Wrong. FINRA maintains the system but does not author disclosures on a registered person's behalf.
2. B.The member firm files through the registration depository, and the representative must promptly inform the firm.Correct. System access belongs to firms, so the individual discharges the obligation by telling compliance in time to file.
3. C.The representative files directly and notifies the firm afterwards so its records can be updated.Wrong. Individuals have no filing access, so a self-submission route simply does not exist.
4. D.Either the firm or the representative may file, whichever learns of the event first.Wrong. The choice is not optional; the filing channel runs through the member firm in every case.

Why: Amendments are filed by the member firm through the Central Registration Depository, because access to the system belongs to firms rather than to individuals. The representative's duty is to inform the firm promptly and completely so the firm can meet the filing deadline the rule sets; a representative who says nothing has caused the firm's failure and is separately responsible for it. The representative also attests to the accuracy of the disclosures, which is why a knowingly false or incomplete answer exposes the individual directly. Nothing in this structure lets the individual bypass the firm and file on their own behalf.

Form BD is best described as the...

1. A.Registration application a broker-dealer firm files with the SECCorrect — Form BD registers the firm itself with the SEC through the CRD system.
2. B.Registration form used by investment advisersInvestment advisers register on Form ADV; Form BD is specific to broker-dealers.
3. C.Notice a firm files when a representative is terminatedThat describes Form U5, the termination notice — not the firm's registration application.
4. D.Form used to register an individual representativeThat is Form U4, which the firm files to register a person — not Form BD.

Why: Form BD is the registration application a broker-dealer FIRM files with the SEC through CRD. Individuals register on Form U4; terminations are reported on Form U5.

The fingerprinting of a newly hired representative is submitted in connection with which filing?

1. A.Form ADVForm ADV is for investment advisers, not for fingerprinting a broker-dealer's new hire.
2. B.Form U5Form U5 reports a termination; fingerprinting happens at registration, on the U4.
3. C.Form U4Correct — fingerprints are submitted along with the individual's Form U4 registration.
4. D.Form BDForm BD is the firm's registration application — it does not fingerprint a new hire.

Why: Fingerprints are submitted along with the Form U4 when an individual registers. Form BD is the firm's application and Form U5 is a termination notice — neither involves fingerprinting a new hire.

Which of the following must be reported on a representative's Form U4?

1. A.An unsatisfied tax lienCorrect — unsatisfied liens are reportable financial events on the U4.
2. B.A promotion to branch managerAn internal promotion is not a reportable event.
3. C.A car loan that was paid off on scheduleA routine, satisfied loan is not a U4 disclosure item.
4. D.A change in marital statusMarital status changes are not reported on the U4.

Why: An unsatisfied tax lien is a reportable financial event. A paid-off loan, a promotion, and a change in marital status are not U4 disclosure items.