Post-Registration Obligations for Agents
Chapters in this video
- 0:00 Why passing the exam is only the beginning
- 1:06 Correcting amendments and the "promptly" rule
- 1:37 Material changes that force a Form U4 update
- 2:03 The penguin rule, felony charges, and the conviction trap
- 3:18 Shared responsibility, agent and broker-dealer both liable
- 4:03 Failure to update as a standalone violation
- 4:35 December 31, the absolute expiration with no exceptions
- 6:29 Rapid-fire exam recap
What this video covers
- What triggers a correcting amendment under the Uniform Securities Act (USA), and why "promptly" means immediately, not annually or quarterly
- The full list of material changes that force a Form U4 update, including address changes, disciplinary history, criminal charges, customer complaints, financial judgments, and employment changes
- Why a felony charge, not a conviction, triggers the duty to update Form U4, and how the exam uses the "innocent until proven guilty" concept as bait
- The shared responsibility rule, where both the agent and the employing broker-dealer (BD) must ensure Form U4 stays current, and how failure by either party is a violation
- Why failure to update Form U4 is itself a standalone violation, even if the underlying event is dismissed or resolved
- The December 31 expiration date for all agent registrations, and why there are zero exceptions regardless of circumstance
- What happens when an agent transacts business after a lapsed registration, and why the agent and BD both face liability for unregistered activity
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