Series 7

Rules and Regulations - Requirements for Registration


How to Become An RR
As you probably know by now, there are two basic steps for registering as an RR:
  1. Application: You must fill out a Uniform Application for Securities Industry Registration or Transfer (Form U-4), which discloses your employment and disciplinary history. FINRA keeps this on file in a database called the Central Registration Depository (CRD). Your U-4 is updated regularly throughout your career and follows you from job to job; your customers as well as your employers

    • both current and prospective - have access to it. So do state regulators and the SEC.

  2. Passing the Series 7 Exam: You must take the 120-question, multiple-choice test and score at least 70% on it (at least 84 questions answered correctly). The good news is the test is taken and scored electronically, so you will know immediately if you passed or failed.
Termination and Transfer of Registration
If a member firm terminates an RR - for whatever reason, voluntary or not - that firm must file a Uniform Termination Notice for Securities Industry Termination (Form U-5) with FINRA.
  • Termination:
    • If the RR moves on to another broker-dealer within two years after termination, his new firm can accept his U-4 on file with the CRD.
    • After two years, however, he will probably have to fill out the U-4 again and, regrettably, take the Series 7 exam once more.
There is an exception: under FINRA Membership and Registration Rule 1070(d), the RR's new firm can request a waiver if the two years have elapsed, reinstating the RR's status "in exceptional cases and where good cause is shown". (In other words, it is likely the RR would have to go to court to get this sort of waiver.)

Next: Reporting Outside Business Activities »


comments powered by Disqus
Marketplace
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=98bd4344326d19829f5a7512ce64ad3a