Form U4

The Importance of Form U4 Disclosure Updates

Failure to timely update information on an individual form U4 may lead to potential fines and suspensions for a registered person, especially if the act is willful. Examinations and sweeps performed by FINRA generally reveal exceptions.

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Top 6

Our Top Six Most Popular Blog Posts

MasterCompliance continues to provide clients and the public with guidance on industry focus areas, new rules, compliance foundations, and regulatory priorities. This blog explores our top six most popular blog posts.

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FINRA Enhances Disclosure Review Process

As I’m sure you already know from reading our previous blogs on the subject, FINRA Rule 3110(e) (Responsibility of Member to Investigate Applicants for Registration) requires that member firms must “ascertain by investigation the good character, business reputation, qualifications, and experience of an applicant” prior to submitting a Form U4 and requesting to associate and register such an applicant with the firm. However, as recently announced, FINRA has made enhancements to its disclosure review process that will make this verification easier than ever.  Such enhancements will allow member firms to rely upon FINRA’s verification process for purposes of compliance with the requirement to conduct a search of public records relating to bankruptcies, judgments and liens.

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Form U4

What is Form U4 and What Sections are on it?

Form U4 is the Uniform Application for Securities Industry Registration or Transfer.  Representatives of broker-dealers, investment advisers, or issuers of securities must fill out the Form U4 to become registered in the appropriate jurisdictions and/or SROs.  The form is filled out electronically within the Central Registration Depository (“CRD”) or the Investment Adviser Registration Depository (“IARD”). Read More…