Question

To register an associated person with Financial Industry Regulatory Authority (FINRA), a member firm will fill out and submit which of the following forms?

1) Form U4
2) Schedule C
3) Form 1040
4) Form U5

Answer 1

To register an associated person with FINRA, a member firm must fill out and submit Form U4, which is the correct form for securities industry registration. This should not be confused with the 1040 form or Schedule C, which are related to tax filings and not securities registration.

Step-by-step explanation:

To register an associated person with the Financial Industry Regulatory Authority (FINRA), a member firm must complete and submit Form U4. This form is the Uniform Application for Securities Industry Registration or Transfer. It is not to be confused with personal or business tax forms such as Form 1040, which is used by individuals to file annual income tax returns. The 1040 form plays a vital role in fiscal policy but is unrelated to the registration of securities professionals.

On the other hand, Form U5 is used when an associated person leaves a firm or needs to update their termination records with FINRA. It is therefore not the form used to register with FINRA.

Schedule C and Form 1040 are primarily concerned with tax filings, with Schedule C being a part of Form 1040 for reporting profit or loss from a business. They are not related to the registration process for individuals in the securities industry.