Financial Industry Regulatory Authority (FINRA) Practice Exam

Question: 1 / 400

Who is responsible for completing and filing Form U-4 when a new associated person is hired at a broker-dealer firm?

The employing broker-dealer firm

The employing broker-dealer firm is responsible for completing and filing Form U-4 when a new associated person is hired. This form is essential as it serves to register an individual with FINRA and includes information such as the person’s employment history, personal details, and disclosure of any legal or regulatory issues.

The firm must ensure that the information provided is accurate and complete because mistakes or omissions can lead to delays in the registration process or compliance issues later on. The timely submission of Form U-4 is also crucial for the associated person to begin working in their regulated role without unnecessary interruptions, as it is tied to their ability to conduct securities business.

Other entities, like local FINRA district offices or the SEC, do not handle the filing of this form directly related to employment. Their roles are distinct and more about oversight and regulation rather than managing the hiring processes of broker-dealers. The new employee does not fill out this form themselves; instead, it is the responsibility of the employer to manage this important regulatory requirement.

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The local Financial Industry Regulatory Authority (FINRA) district office

The Securities and Exchange Commission (SEC)

The new employee

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