The U4, also known as the uniform application for registration or transfer of the securities industry, is the primary vehicle by which regulators (FINRA, states, and exchanges) select applicants for registration and registrants for re-registration or continuous registration. It is also one of the main sources of information for the Central Depository of Registration (CRD) or the Depository of Registration of an Investment Adviser (RPVI). It contains personally identifiable information about each applicant, such as name, social security number, physical characteristics, address history, work experience, and education. Beyond these bases, plaintiffs must self-report information relating to customer complaints, arbitration requests, administrative proceedings, bankruptcies, certain criminal records, certain civil litigation and privileges, judgments, etc. A departing investment advisor representative should consult with local legal counsel about their legal obligations to the current or former investment advisory firm before preparing and filing Form U4 with a new investment advisory firm. RIA Compliance Consultants, Inc. is not a law firm and does not provide legal advice regarding the obligations of an outgoing Investment Advisor Representative to his or her current/former company. A Form U4 filed in the name of a person registered with another dealer-dealer with another dealer-dealer within 30 calendar days must complete all applicable sections except section 9 (Identification Information/Name Change), section 10 (Other Names), section 11 (Residential History), section 12 (Employment History) and section 13 (Miscellaneous). Examples of information requiring an amendment to an investment advisor`s Form U4 include: Representatives of dealers, investment advisers or issuers of securities must be registered with the relevant jurisdictions or self-regulatory organizations (SROs). Form U4 (Uniform Application for Registration or Transfer in the Securities Industry) is used to justify this registration. Applicants submitting paper bids should read the Special Instructions for Paper Bidders, which can be found on FINRA`s website. In addition, paper applicants should contact the competent court and/or SRO for specific filing instructions or requirements.
If the information changes, the individual must update the form accordingly. Please note that paper deposits are generally not allowed for broker-dealer registrations. If you are applying for the first time, you must submit a completed U4 form. In addition, applicants must answer all questions and submit all requested information, unless otherwise specified in the special instructions. In the event of a change, a person is still required to amend and update the information required on Form U4. Most importantly, you file amendments electronically (unless the notifier is an approved registrant) by updating the relevant section of Form U4. In addition, it is important to regularly review the information associated with your DRB number to ensure that it is complete and accurate. Whether a person can license an Investment Advisor Representative (« IAR ») with more than one investment advisory firm depends on the state. Most state securities regulators allow for dual IAR licensing; However, several state securities regulators limit dual licensing of the DIR to cases where investment advisory firms are jointly owned and controlled. State securities regulators that allow dual issuance of IAR permits may require that additional forms be completed and other reports be made. On the broker-dealer side, the main regulations regarding the U4 form come from FINRA.
Section 5, Section 2 of FINRA`s Constitution requires that any person applying for registration with FINRA file an application (Form U-4) and that the application be kept up to date at all times by amendment. This by-law section gives people up to 30 days to amend their U4 form after becoming aware of the facts giving rise to a change, but if the change involves a legal disqualification, it must be filed within 10 days, instead of 30 days. FINRA has enforced this requirement in the past by prosecuting FINRA Rules 1122 and 2010 violations against applicants and brokers who fail to honestly report U4 information or amend their U4 in a timely manner. Unfortunately, in a rather draconian system, a « deliberate » failure to report information on Form U-4 can have catastrophic consequences, including permanent legal disqualification. Form U5 is the uniform notice of termination for registration in the securities industry. Investment advisory firms must use Form U5 to terminate the registration of a person acting as an investment advisor`s representative with a state securities regulator. Like Form U4, Form U5 is also filed electronically through the DRC Web. Since the State Securities Commission generally gives the former investment advisory firm 30 days to file Form U5 and the State Securities Commission generally reviews or approves a transfer until after filing Form U5, there is a risk that the person will not be able to act as an investment adviser`s representative on day one. with the new investment advisory firm. Individuals should read the Managing Your Career Guide for more information on registration requirements.
What information does an investment representative contain on their U4 form? (Limited access to annual compliance program clients) Form U4 is the securities industry`s only application for registration or transfer. Individuals who wish to register as an Investment Advisor (IAR) with a registered investment advisory firm should normally use this form to register with a government securities regulator. This document is filed electronically via the Central Registrar system (« Web CRD »). Registered industry experts can access a draft of the U4 form in FinPro and update it only if the company activates « Allow representation changes » in a draft of the U4 form. Access to this feature is not controlled by system permissions or fixed settings. In addition, the e-signature feature must be enabled in the Enterprise Settings section of the FINRA gateway. For more information, see the Enterprise Settings Guide. Failure to properly disclose information on Form U4 may result in a variety of penalties, including, but not limited to, fines, suspensions or even a ban on acting as an investment advisor`s representative.
Note: FinPro users can no longer enter their name in signature fields using the Allow Representation Changes feature. Companies now need to enable the e-signature feature to allow FinPro users to access the signature page. For more information, see the Electronic signature section below. For more information, see Form U4 Disclosure Obligations and FINRA Rule 3110(e): Form U4 Verification Process.