SIE practice questionmediumForm U4 Disclosure
A registered representative is charged with a felony. When must this be disclosed on Form U4?
- AOnly if the representative is terminated as a result
- BWithin 30 days of the charge✓ Correct answer
- COnly after a conviction
- DOnly if the charge is securities-related
Explanation
Why B — Within 30 days of the charge
Form U4 requires disclosure of criminal charges — not just convictions. When a registered person is charged with (not just convicted of) a felony or certain misdemeanors, the firm must amend the U4 within 30 days. This includes charges that are pending. The disclosure requirement is not limited to securities-related offenses; it covers all felonies and certain specified misdemeanors. Waiting for a conviction before disclosing would violate FINRA rules.
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