What is Form U5?

Upon terminating a registered representative or an investment advisor from a firm, whether voluntary or involuntary, a Form U5 must be filed. The Form U5 is the Uniform Termination Notice for Securities Industry Regulations. It can be filed electronically with the Central Registration Depository (“CRD”) or the Investment Adviser Registration Depository (“IARD”).  Firms can also submit paper filings.  Once filed, the individual’s registration will be terminated in the appropriate jurisdictions and/or self-regulatory organizations. Read More…

What is the SIE Exam?

As mentioned in our previous post, What is on the Series 7 exam, the FINRA has restructured the examination process and implemented a new exam, the Securities Industry Essential exam (“SIE”).  On October 1, 2018, the SIE exam will become a prerequisite to all of the FINRA’s representative-level qualification exams (“rep-level exams”). PURPOPSE OF THE[…]

How to Become an RIA

A registered investment advisor (“RIA”) is a person or firm that, for compensation, provides advice, makes recommendations, issues reports or furnishes analyses on securities, either directly or through publications.  Typically, an RIA manages the assets of high net worth individuals and institutional investors.  RIAs have the highest standard of care as they are deemed fiduciaries.  As a fiduciary, RIAs owe their clients a duty of undivided loyalty and utmost good faith.  If you’re interested in becoming an RIA, you must first have the proper qualifications and registrations. Read More…

What is on the Series 7 exam?

The financial services industry is heavily regulated.  In order to enter into the industry and sell securities, you must first prove that you have the competence.  In order to showcase your competency, the Financial Industry Regulatory Authority (“FINRA”) requires that you take the Series 7 exam, also known as the General Securities Registered Representative Qualification Exam.  In order to take the exam, you must be sponsored by a FINRA member firm. Read More…

Rule change related to Registration and Continuing Education

As summarized below, FINRA recently filed with the SEC a proposed rule change to adopt, with amendments, the NASD and Incorporated NYSE rules relating to qualification and registration requirements as FINRA rules in the Consolidated Rulebook. The proposed rule change also restructures the current representative-level qualification examinations and creates a general knowledge examination and specialized knowledge examinations.  In addition, the proposed rule change amends the Continuing Education (“CE”) requirements.

Registration Requirements

FINRA has adopted registration requirements to ensure that associated persons attain and maintain specified levels of competence and knowledge pertinent to their function.  The current FINRA registration rules include both NASD rules and rules incorporated from the NYSE. Read More…

Submitting Fingerprints to FINRA

As a broker-dealer compliance company, we are often consulted about the process of submitting fingerprints for FINRA approval.

Who Needs to Be Fingerprinted?

Section 17f-2 of the Securities Exchange Act (SEA) of 1934 states that that “every member of a national securities exchange, broker, dealer, registered transfer agent, registered clearing agency, registered securities information processor, national securities exchange, and Read More…

Important Annual Regulatory Certifications – Rule 4517

FINRA Rule 4517 – Member Filing and Contact Information Requirements

FINRA Rule 4517 requires member broker-dealers to report and update to FINRA all contact information required by FINRA via Firm Gateway.  Specifically, each registered broker-dealer is required to report and update all contact information required by FINRA via the Firm Gateway.  Additionally, broker-dealers must update its required contact information promptly, but in any event not later than 30 days following any change in such information. Read More…

Is a Series 24 Required to Own a BD?

The question of who is required to have an active FINRA Series 24 (General Securities Principal) registration is often not as easy to answer as you may think. As a broker-dealer compliance consulting specialist, we encounter this question from seasoned FINRA compliance veterans and new broker-dealers alike.

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