Financial Industry Regulatory Authority (FINRA) Practice Exam 2026 - Free FINRA Practice Questions and Study Guide

A Form U-5 is specifically designed to notify regulatory authorities and provide information about the termination of a registered representative's employment with a brokerage firm. This form must be filed when a registered representative is terminated to document the circumstances surrounding their departure from the firm, whether it was voluntary or involuntary, and to outline any allegations or reasons related to that termination. By filing the Form U-5, the firm ensures transparency and compliance with regulatory requirements, which is critical for maintaining the integrity of the financial industry.

The other scenarios, such as hiring a registered representative, promoting an employee, or changing an employee's role, do not necessitate the filing of a Form U-5, as these events do not involve the termination of employment and thus lack the relevant context that the U-5 form addresses.