Welcome to Registration and Continuing Education: the rules that determine who can work in the securities industry and what they must do to stay qualified.
Exam Weight: This unit is part of Overview of the Regulatory Framework. The full section accounts for 7 scored questions (9% of the exam). The official outline does not assign a separate question count to this unit.
What You'll Learn
- What registered and non-registered persons can and cannot do at a member firm
- The Form U4 process, background checks, fingerprinting, and SRO qualification
- Criminal and regulatory events that trigger statutory disqualification
- When firms must deny or terminate association with individuals
- Why FINRA registration alone is not enough and how state blue-sky laws apply
- The two-part continuing education system that keeps registered persons current
Why This Matters
Every securities professional must be properly registered before they can conduct business. The registration process involves qualifying exams, background investigations, and ongoing education requirements. Understanding what triggers disqualification, what activities require registration, and how continuing education works is essential for the SIE exam and for anyone planning a career in the industry.
Let's start with the fundamental distinction between registered and non-registered persons.