Post-Registration Obligations for Agents
Once an agent is registered, the obligations do not stop. USA Section 203 imposes ongoing duties to keep filings current and accurate, and Section 201(e) requires annual renewal.
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
Form U4 Update Requirements
Agents register through the Uniform Application for Securities Industry Registration or Transfer (Form U4), filed electronically through the Web Central Registration Depository (CRD) system. The amendment deadlines depend on the type of event:
| Amendment Trigger | Filing Deadline |
|---|---|
| General reportable events (address change, customer complaint, financial judgment, regulatory action) | 30 days after learning of the event |
| Statutory disqualification events (felony conviction, certain misdemeanor convictions, court injunctions, regulatory bars) | 10 days after the event |
| Change of employer (termination or new association) | Promptly (USA Section 201(b)) |
The 30-Day vs. 10-Day Rule
- The general rule is 30 days for most reportable events
- The expedited rule is 10 days for events involving a statutory disqualification as defined in Securities Exchange Act (SEA) Sections 3(a)(39) and 15(b)(4)
- Statutory disqualification events are the most serious: felony convictions, securities-related misdemeanor convictions, court injunctions barring securities activity, and regulatory bars
Dual Obligation to Update
- Both the agent and the employing broker-dealer (BD) must ensure the Form U4 is current
- 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
- The general rule is 30 days; statutory disqualifications require 10 days. The exam tests both deadlines.
- 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 10-day deadline. 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 USA Section 201(a)
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.