Form U5

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.

What is a Form U5?

1. A.A notice an associated person files to resign a registration and transfer it to a new member firm.Wrong. Registration does not transfer, and the individual is not the filer of this form under any circumstances.
2. B.A request a member firm files to terminate a branch office registration and close the location.Wrong. This form concerns the registration of a person, not the registration of a physical office.
3. C.A notice a member firm files when an associated person's registration with it ends, stating the date and reason and disclosing reportable events.Correct. It is the industry's early-warning record of how and why an association ended, filed by the firm.
4. D.An annual certification a member firm files confirming that each registered person remains qualified.Wrong. Nothing about this form is periodic; it is triggered by the end of a particular association.

Why: The Form U5 is the Uniform Termination Notice for Securities Industry Registration, filed by a member firm when an associated person's registration with that firm ends. It records the date the association terminated and the reason for the termination, and it discloses reportable events the firm knows of, so the next employer and the regulators see the same picture the departing firm does. Because the filing is the industry's principal early-warning device, its accuracy is a compliance obligation of the firm rather than a courtesy to the departing person. The individual does not file it; the firm does, and the individual receives a copy.

True or False: A member firm's obligation to amend a Form U5 can arise after the person has already left, when the firm later learns of information that would have been reportable.

1. A.False. The firm's disclosure duty ends with the association, and the new employer becomes responsible for later events.Wrong. The new employer cannot disclose what happened during a period it did not supervise and may know nothing about.
2. B.False. Once filed, a termination notice is a historical record and may not be amended by anyone.Wrong. The form is expressly amendable, which is the mechanism by which later-discovered facts reach the record.
3. C.True, but only where the departing person consents in writing to the amended filing.Wrong. No consent right exists, and giving the subject a veto would defeat the purpose of the disclosure.
4. D.True. The firm must file an amended notice reflecting information it learns after the departure that would have been reportable.Correct. The continuing duty is how the record catches problems that surface only once someone has moved on.

Why: The U5 obligation does not close when the association ends. If a firm afterwards learns facts that would have been disclosable had it known them at the time, it must file an amended U5 so the record reflects what the firm now knows. This matters because complaints, regulatory inquiries, and the results of internal reviews frequently surface only after a representative has moved on, and a stale record would let a problem travel invisibly to the next employer. The obligation runs for the period the rule prescribes and applies whether the departure was a resignation or a termination for cause.