8.10.4 Agent Registration
To register an agent, a sponsoring broker-dealer or issuer must use the Central Depository Registration system to file a Form U4, and the individual must pass whatever exams are required for the types of securities she will be selling. Additionally, potential agents must pass a background check that looks for previous criminal as well as regulatory violations. The applicant must file a “consent to service of process,” which allows a state administrator to receive legal papers (summons, notice of lawsuits, etc.) on behalf of the agent. As part of a broker-dealer’s state registration, the broker-dealer must also file a consent to service of process. Once the consent to service of process has been filed, it does not need to be renewed.
Form U4 contains detailed personal information, including:
• Physical characteristics
• Residential history
• Employment history and other businesses
• Criminal history
• Civil judicial proceedings
• Bankruptcy judgment
