Chapter 1: Registration & Personnel Management
This chapter covers 6% of the Series 24 exam (approximately 9 questions) and focuses on how broker-dealers and their associated persons get registered, qualified, and supervised at the personnel level.
What You'll Learn
| Unit | Topic | Key Concepts |
|---|---|---|
| 1 | Broker-Dealer Registration | Forms BD, BDW, and BR; SEC, SRO, and state registration framework; FINRA membership and continuing membership; sanctions, misrepresentation, and SIPC |
| 2 | Associated Person Registration | Pre-hire investigation and fingerprinting; Forms U4 and U5; registration categories and exemptions; statutory disqualification; heightened supervision; continuing education |
Why This Chapter Matters
Supervision begins with people. Before you can supervise activities, you need to know who is permitted to engage in them. The chapter establishes the registration framework that gates every other supervisory function:
- Firms must be properly registered with the SEC, FINRA, and the states where they conduct business
- Associated persons must hold the right qualifications for the activities they perform
- Disqualifying events must be detected, disclosed, and managed (including through heightened supervision)
- Continuing education must be tracked and enforced for everyone holding a registration
Without these foundations in place, every downstream supervisory obligation in Chapters 2 through 5 is built on sand.
Exam Strategy
At 6% of the exam, this is the smallest chapter, but the questions are highly rule-specific. Focus on:
- Form distinctions: Form BD (initial registration), BDW (withdrawal), BR (branch office), U4 (associated person registration), U5 (termination)
- Filing windows: 30 days for most U4/U5 amendments, 10 business days for U4 disclosure events
- Statutory disqualification triggers: Felony convictions within 10 years, misdemeanors involving securities or money, certain regulatory bars
- Heightened supervision requirements when retaining a statutorily disqualified person
- CE requirements: Regulatory Element (every 3 years) and Firm Element (annually)