What documentation must firms use to report actions taken against a registered representative?

What documentation must firms use to report actions taken against a registered representative?

• A. Form U4
• B. Form U5
• C. Form BD
• D. Form 10-Q

Answer: (A)

The correct documentation for reporting actions taken against a registered representative is Form U5. This form is specifically designed for firms to notify the appropriate regulatory authorities about any termination of employment of a registered representative and to provide information regarding the reason for such termination. Form U4, on the other hand, is used to register individuals with a member firm and to report information about their employment and disciplinary history when they initially register with a regulatory authority. It does not serve the purpose of reporting actions taken against an individual after the employment has ended. Forms BD and 10-Q have different functions altogether; Form BD is utilized for registering broker-dealers, while Form 10-Q is a quarterly financial report that publicly traded companies file with the Securities and Exchange Commission (SEC) and is unrelated to reporting representative actions. Thus, understanding the purpose of each of these forms clarifies why Form U5 is the appropriate choice for reporting actions against registered representatives.

The correct documentation for reporting actions taken against a registered representative is Form U5. This form is specifically designed for firms to notify the appropriate regulatory authorities about any termination of employment of a registered representative and to provide information regarding the reason for such termination.

Form U4, on the other hand, is used to register individuals with a member firm and to report information about their employment and disciplinary history when they initially register with a regulatory authority. It does not serve the purpose of reporting actions taken against an individual after the employment has ended.

Forms BD and 10-Q have different functions altogether; Form BD is utilized for registering broker-dealers, while Form 10-Q is a quarterly financial report that publicly traded companies file with the Securities and Exchange Commission (SEC) and is unrelated to reporting representative actions.

Thus, understanding the purpose of each of these forms clarifies why Form U5 is the appropriate choice for reporting actions against registered representatives.