Registration is not a one-time event. The USA imposes an ongoing obligation to keep Form U4 current and accurate; the exam frequently tests what triggers an update.
The Obligation to Update
Under the USA, if the information in any document filed with the Administrator becomes inaccurate or incomplete in any material respect, the registrant must file a correcting amendment promptly.
- This applies to Form U4; agents have a continuous duty to keep their filings current
Events Requiring a Form U4 Amendment
A correcting amendment is required whenever reportable information changes, including:
- Criminal charges or convictions
- Regulatory actions (denial, suspension, revocation)
- Customer complaints (written, involving sales practices)
- Civil judicial actions (injunctions)
- Financial disclosures (bankruptcy, judgment, lien)
- Change of address (residential or business)
- Change of name
Exam Tip: Gotchas
An agent who is charged with a felony must update Form U4; the agent does not wait for a conviction. Charges alone trigger the disclosure obligation. Similarly, a customer complaint must be disclosed even if the agent believes it is completely without merit.
Consequences of Failure to Update
Failure to promptly update Form U4 carries serious consequences:
- The failure itself is a violation of the Act
- An incomplete or materially inaccurate filing is grounds for denial, suspension, or revocation of registration under the USA
- Willful failure to update may constitute a violation subject to administrative or criminal penalties