FINRA Manual: Contents
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85-40 Implementation of Revised Forms U-4 and U-5
TO: All NASD Members
ATTN: Compliance and Registration Personnel
Effective July 1, 1985, the revised Form U-4 (Uniform Application for Securities Industry Registration or Transfer) and Form U-5 (Uniform Termination Notice for Securities Industry Registration) will be used to register and terminate individuals with the NASD through the Central Registration Depository (CRD). The revised forms are the result of considerable time and effort by the North American Securities Administrators Association Forms Revision Committee, which included representatives from NASD, SEC, NYSE, AMEX and various industry groups. The Committee has been working since February of 1984 on the revisions, and the results will significantly reduce the time and paperwork involved in preparing these documents. It is our belief that these changes will benefit the securities industry by eliminating unnecessary paperwork, speed the filing process and reduce attendant costs. Further, the Securities and Exchange Commission is proposing to amend Rule 17a-3, "Records to be Made by Certain Exchange Members, Brokers and Dealers," in an effort to conform the rule to the information required in the revised Form U-4.
This notice details the major revisions to these forms and further describes the methods of filing the revised documents with CRD.
REVISED FORM U-4
Initial Registration Filings
All initial registration filings must be made on a complete four-page Form U-4 with fingerprints (unless exempt). Individuals who have been previously registered but not within the last 120 days must also file a complete Form U-4.
All transfers of registration occurring within 120 days from the last registration should be made as a partial filing by submitting only pages 1, 3 and 4, including fingerprints (unless exempt), provided that Item 12 is answered completely. Page 2 should not be submitted unless changes which are not detailed in Item 12 have occurred since the previous filing.
Temporary Agent Transfer (TAT)
Temporary agent transfer filings should be made via a partial filing with Item 12 completed and the appropriate box (TAT) checked on page 1. Temporary agent transfers are only available to applicants who have terminated their employment and registration, with a member within the preceding seven calendar days. Transfer applications filed to make permanent a temporary transfer must be made within the 21 days stipulated in the TAT program guidelines.
Branch LD. #/Office of Employment Address (Item 7)
While the entry of the office of employment address is required, the Branch I.D. # is voluntary, should the member wish to identify the applicant's office of employment by its own branch, or billing, designation. The number or code must not exceed eight characters. The entry of the branch numbers will provide the NASD with the basis for a new billing concept, which will display the numbers or codes in the firm's monthly accounting report and will assist the firm in allocating fees to specific branches. If used, this designation will also be displayed in the individual's employment record and may be viewed by FAQS subscribers.
Multiple Registrations (Item 9)
The new U-4 has been expanded to accommodate multiple registrations with one or more firms under common ownership or control. The primary or sponsoring BD shown under Item 4 must indicate under Item 9 its affiliates and their respective firm CRD numbers with which the applicant desires registration. If the firm(s) wishes to register the applicant with self-regulatory organizations and/or states different from those shown for the primary firm, separate and distinct page 1 filings must be completed on behalf of each affiliate firm and attached to the common, complete U-4 filing. Remember, this one-form, one-registration fee concept is applicable only to firms under common ownership and control as evidenced on Form BD as submitted to the NASD and the SEC. For more details on this concept, call Raymond Heffron at (202) 728-8367.
Type of Examination/Registration (Item 11)
This section has been expanded to show the series number and name of each NASD-administered examination. You will note there is no longer an exam request box on the form (formerly in the state registration area). This means all state or Series 63 exams must be requested under Item 11 by checking the applicable box. There is a new box titled, "Reschedule Exam Series_______." This box should be checked and completed to reschedule exams that have expired, have been failed and for exams which have been passed but a higher score is required by a self-regulatory organization or state. Remember, all exams or registrations must be requested under Item 11 by checking the applicable box.
Please note that the S-42 (Options Representative) and S-62 (Corporate Securities Representative) boxes, although included in the revised form, are reserved for future use. The CRD System will disregard these items until such time as these examinations become available.
Page 2 of Form U-4
This page has been revised to eliminate the following items:
- Marital Status
- Mother's Name
- Identifying Marks
- Entire Educational History Section
- Father's Name
- Spouse's Name
- Maiden Name
- Residential History has been revised to require five years of information rather than ten years. The applicant's current address should be the first entry in this item, (formerly located under Personal History category).
- Employment and Personal History have been revised to eliminate street address, zip codes, full or part-time (employment) and reason for leaving.
Page 3 of Form U-4
The disciplinary questions have been revised and condensed to make the questions easier to understand and answer. Item 22 begins with basic definitions relative to disciplinary questions 22 A through N. The numbers 1 through 31 on the right margin exist solely for the benefit of operator entry and should not be used to identify items.
Photographs are no longer required.
Page 4 of Form U-4
The requirements for notarization of the applicant's signature have been deleted and the certification requirements have been revised and expanded to include Items 8 and 9, relating to the requirement to file timely amendments to Form U-4 and facilitating language for the TAT program.
Signature Requirement for Complete/Partial Filings
Signatures of the applicant and appropriate signatory must be original and are required only on page 4 of complete or partial form filings. Pages 1, 2 and 3 need not be signed. The signature requirement relative to amendments is outlined under Amendments to Form U-4.
The attachment sheet to Form U-4 should be used to continue items from the form, e.g., Item 18, Residential History, Item 19, Business History, and to provide details to affirmative answers on page 3. The item number must be identified in the left column next to the answer, and the sheet must be attached to the relevant Form U-4. Attachment sheets received by the CRD which are not attached to a Form U-4, or to a page 2 or 3 amendment will be returned to the firm.
Amendments to Form U-4
When filing a page 1 amendment, Items 1, 2, 3 and 4 must be completed to identify the individual and firm submitting the form, and the page must be manually signed by the appropriate signatory.
Items 13 and 14 must be completed to establish identity. When reporting changes or new data, you need only complete the relevant items; do not complete the entire page (unless it is necessary). Page 2 must be manually signed by the appropriate signatory.
Item 21 must be completed to establish identity. When reporting changes, complete the relevant item(s) only; you need not complete the entire page. A page 3 amendment requires both the signature of the applicant and appropriate signatory.
Item 23 must be completed to establish identity. The only time an amendment to page 4 would be necessary is to correct signature and/or verification deficiencies from a previous filing.
Note: All amendments to pages 1, 2, 3 and 4 must be manually signed. Page 3 must be manually signed by both the applicant and appropriate signatory. Page 4 must be manually signed by both parties if the signatures were missing or not manually signed on the original U-4 submission. If the verification of employment section was missing or deficient on the original U-4 filing, the corrective page 4 amendment would have to be manually signed by the appropriate signatory.
REVISED FORM U-5
Form U-5 (4/85) has been revised to include filing instructions, to accommodate certain amendments to the form, to permit multiple terminations and to distinguish between full and partial terminations. In addition, a revised set of disciplinary questions has been approved for Form U-5.
Branch I.D. # (Item 6)
As in the case of the Form U-4, if the firm has assigned or identified its branches, a branch or billing code (not to exceed eight characters) should be
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