SIE cheat sheetSection 4: Overview of Regulatory Framework (9%)
Registration, Forms & Continuing Education
Free and printable — use your browser's print function for a clean copy. Updated 2026-07-05.
Registration Forms
- Form U4: Uniform Application for Securities Industry Registration
- Filed when a person ENTERS the industry / registers with a new firm
- Discloses: criminal history, regulatory actions, financial judgments, bankruptcies
- Must be updated within 30 DAYS of any material change
- Form U5: Uniform Termination Notice
- Filed when a person LEAVES a firm
- Firm must file within 30 DAYS of termination
- Includes reason for termination
Statutory Disqualification
Bars a person from the industry. Triggers:
- Any FELONY conviction (any type) within past 10 years
- Any MISDEMEANOR involving money, securities, or dishonesty (no time limit for securities-related)
- Expulsion or suspension by an SRO
- SEC or court order barring from the industry
- False statements on registration forms
Continuing Education (CE)
- Regulatory Element: Computer-based training
- Must complete within 120 days of 2nd anniversary, then annually
- Content prescribed by FINRA
- Failure to complete = INACTIVE status (can't perform duties)
- Firm Element: Firm-designed annual training
- At least annually
- Content based on firm's business and regulatory developments
- Firm creates its own curriculum with needs analysis
Associated Person
- Any person associated with a member firm (broker-dealer)
- Includes: employees, partners, officers, directors
- Must register with FINRA before engaging in securities business
Key facts to memorize
- Form U4: entry/registration; Form U5: termination
- Both forms: 30-day filing deadline
- Statutory disqualification: any felony (10 years), securities misdemeanor (no time limit)
- Regulatory Element: starts 2nd anniversary, then annually, FINRA-prescribed
- Firm Element: annual, firm-designed training
- Fail Regulatory Element = inactive status
Mnemonics that stick
- "U4 = yoU ENTER (4 looks like a door); U5 = yoU EXIT (5 = sayonara)"
- "30 days to file U4 changes or U5 termination"
- "Felony = 10 years; Misdemeanor with money = basically forever (securities-related)"
- "Regulatory Element = Required by the Regulator (FINRA); Firm Element = Firm designs it"
- "Fail CE = Inactive — can't work until completed"
Exam traps
- ANY felony (even non-financial) within 10 years = statutory disqualification
- Securities-related misdemeanors have NO time limit for disqualification
- U4 must be updated within 30 DAYS of material changes (not immediately)
- Regulatory Element failure = INACTIVE status, not termination
- Regulatory Element starts at 2nd anniversary, then annually
- Firm Element is annual and firm-designed — not a FINRA test
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