Financial Industry Regulatory Authority (FINRA) Practice Exam 2025 - Free FINRA Practice Questions and Study Guide

An employed broker-dealer firm submits Form U-4 upon the hiring of a new associated person because this form is used to register an individual to become an associated person of a broker-dealer. The U-4 form includes vital information about the individual, such as their personal identification, employment history, and any disciplinary history, which helps regulatory authorities assess the individual's qualifications and fitness for the role.

Timely submission of Form U-4 is essential as it initiates the registration process with the Financial Industry Regulatory Authority (FINRA) and any other appropriate self-regulatory organizations (SROs). Through this form, the associated person is officially recognized as part of the broker-dealer's registered personnel, allowing them to engage in various securities activities.

While other forms mentioned, such as Form U-5, Form ADV, and Form D, have specific purposes related to securities registration and investment advisory activities, they do not apply to the initial hiring and registration of a new associated person with a broker-dealer. Form U-5 is related to terminating a registered associated person, Form ADV pertains to investment advisers, and Form D is used for certain private placements. Therefore, the correct form for registering a new hire at a broker-dealer is indeed Form U