Welcome to Registration and Post-Registration: how an agent registers, what an agent must keep current after registration, and how the Administrator can take action against an agent's registration.
Exam Weight: Part of 13% (8 questions across Chapter 4)
What You'll Learn
In this unit, you'll cover:
- Agent registration requirements: Who must register, Form U4, the consent to service of process, when registration becomes effective, and renewal
- Post-registration obligations: Correcting amendments, keeping Form U4 current, and annual expiration and renewal
- Denial, suspension, revocation, and cancellation: The two-prong test, statutory grounds, summary suspension, withdrawal, and the 90-day rule
- Updating Form U4: Which events require an amendment and what happens if an agent fails to update
- Agent conduct requirements: Who notifies the Administrator on a change of association, and special rules for Canadian broker-dealer agents
- Notification of status changes: Who must notify the Administrator when an agent leaves or moves, and how
Why This Matters
This unit builds on the agent definition from the prior unit and covers the detailed rules the exam loves to test. Expect questions on the fine distinctions: When must an agent promptly update a filing that has become materially inaccurate? When does a registration become effective?
Also expect questions on procedure: Can the Administrator suspend an agent without a hearing? What does the 90-day rule prevent?
These topics are tested both as standalone questions and as part of scenario-based questions requiring you to identify violations. Mastering the deadlines and procedural rules here matters for the 8 questions that come from this chapter.
Let's start with the agent registration requirements.