Once an agent is registered, the obligations do not stop. The USA imposes ongoing duties to keep filings current and accurate, and registrations must be renewed annually.
Correcting Amendments
- If 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 all agents as registrants
- Material changes requiring amendment include:
- Change of address (residential or business)
- New disciplinary history
- Criminal charges or convictions
- Customer complaints
- Financial judgments or liens
- Termination or change of employment
Keeping Form U4 Current
- Both the agent and the employing broker-dealer (BD) must ensure the Form U4 stays current and accurate
- An agent who is charged with a felony must update promptly; you do not wait for a conviction
- Failure to update Form U4 is itself a violation that can lead to disciplinary action against both the agent and the BD
Exam Tip: Gotchas
- Both the agent and the broker-dealer (BD) must ensure timely Form U4 updates. Failure by either party is a violation.
- A felony charge triggers the duty to update. You do not wait for conviction.
Registration Expiration and Renewal
- Every agent registration expires December 31 unless renewed
- Renewal requires filing the appropriate renewal application and paying the renewal fee before the expiration date
- If an agent's registration lapses and the agent continues to transact business, the agent is acting as an unregistered agent in violation of the USA's registration requirement
Exam Tip: Gotchas
- All registrations expire December 31, no exceptions. An agent who continues transacting after a lapsed registration is acting unlawfully.
- Failure to update Form U4 is itself a separate violation. The exam may present this as a standalone infraction, apart from whatever triggered the need for the update.