Registration Requirements

Understanding the registration process for securities professionals is essential for the SIE exam. This section covers the forms, requirements, and systems used to register and track associated persons.

Who Must Register?

Associated persons of broker-dealers must register with FINRA before engaging in securities business.

Associated Person Definition

An associated person includes anyone who:

• Engages in the securities business of a member firm
• Functions as a sole proprietor, partner, officer, or director
• Controls or is controlled by a member firm
• Is employed by a member firm

Registration Exemptions

Some individuals do not need to register:

• Clerical and administrative staff (non-securities functions)
• Persons whose functions are solely ministerial
• Back-office personnel not involved in sales

The SIE Exam

The Securities Industry Essentials (SIE) exam is the first step toward registration.

SIE Exam Features

Note: Effective October 27, 2025, the SIE exam will have only 5 unscored questions instead of 10.

SIE Alone Is Not Enough

Passing the SIE does not:

• Qualify you to conduct securities business
• Allow registration with a firm
• Permit solicitation of customers

You must also pass a representative-level exam (like Series 6 or 7) while sponsored by a firm.

Form U4: Uniform Application for Registration

Form U4 is used to register associated persons with FINRA and state regulators.

When Form U4 Is Filed

• New registration with a firm
• Transfer to a new firm
• Adding new registration categories
• Updating existing information

Information Required on Form U4

Disclosure Questions

Form U4 requires disclosure of:

Important: False or misleading information on Form U4 is a serious violation that can result in fines, suspension, or bar from the industry.

Fingerprint Requirements

All registered persons must submit fingerprints for:

• FBI criminal background check
• State background checks
• Verification of identity

Form U5: Uniform Termination Notice

Form U5 is filed when an associated person leaves a firm.

When Form U5 Is Filed

Form U5 Contents

• Reason for termination
• Internal review disclosures
• Regulatory action disclosures
• Customer complaint disclosures

Termination Reasons

Note: Form U5 information becomes public on BrokerCheck.

Central Registration Depository (CRD)

The CRD is FINRA's electronic system for registration.

CRD Functions

Web CRD

Firms use Web CRD to:

• Submit registration forms electronically
• Update associated person information
• Pay registration fees
• Track registration status

FINRA BrokerCheck

BrokerCheck is FINRA's free public database.

What BrokerCheck Shows

How to Access

• Online at brokercheck.finra.org
• Call FINRA's hotline
• Free to the public

Exam Tip: Investors should use BrokerCheck to research their financial professionals before doing business.

Registration Categories

Representative Registrations

Principal Registrations

Registration Maintenance

Keeping Registration Active

To maintain registration:

• Complete continuing education requirements
• Stay associated with a member firm
• Keep Form U4 information current

Registration Lapse

Updating Form U4

Firms must update Form U4 within 30 days when:

• Address changes
• Name changes
• New disclosures arise
• Employment status changes

Statutory Disqualification

Certain events can result in statutory disqualification from registration:

Note: Firms can apply to employ statutorily disqualified persons through FINRA's eligibility process.

Key Takeaways

• SIE exam is open to anyone 18+, valid for 4 years
• Form U4 registers associated persons
• Form U5 terminates registration
• CRD is FINRA's electronic registration system
• BrokerCheck provides public access to broker information
• Registration lapses after 2+ years out of industry
• False U4/U5 information is a serious violation