CRD FAQ - Form Filing for Individuals - Dually Registered Representatives and/or IA Representatives of Affiliated Firms
What types of Dual Deficiencies exist?
There are three deficiencies: RR/RR, RR/RA, RA/RA. A state may have different requirements for each registration combination. Contact the state regulator directly.
What is a Concurrence Filing?
A Concurrence Filing is a type of filing that allows a firm to submit a Form U4 Amendment concurring with, and thereby adopting, Form U4 changes submitted by another firm that employs the same individual. A Concurrence Filing may be filed when the following information is submitted by a firm employing a dually-registered individual:
- Identifying information/Name Change
- Other Names, Residential History
- Employment History
- Other Business
- Disclosure Questions or DRPs.
The filing is a read-only filing; however, the Signature Section of the Concurrence Filing must be completed by the adopting firm in order for the concurrence to be effective. On the Form U4, under Registration Requests with Affiliated Firms, the following two check boxes are NOT active:
- Check here to request the same SRO and jurisdiction registrations for this affiliated firm that are requested for the filing firm.
- Check here to request different SRO and jurisdiction registrations for the filing firm.
What should the firm do to make the appropriate SRO registration and jurisdiction selections?
The firm should enter the affiliated firm information and create the affiliate, and then select the affiliated firm hyperlink. The firm will have three choices:
- Copy Filing Firm Regs
- SRO Registrations
- Jurisdictions
The firm may then select the appropriate button(s) and request the desired registrations for the affiliated firms.
To dually register an individual as an AG (Broker-Dealer Agent) and RA (Investment Adviser Representative) when the employing firms are affiliates, both Form BD and Form ADV must designate the other firm as an affiliate. The SEC does not require, or request, investment advisers registered with them to list BD affiliates on Form ADV. How does an IA list a BD firm as an affiliate on Form ADV?Investment advisers registered with the SEC are not required to list BD affiliates on Form ADV. The SEC will allow investment advisers that want to list the names and CRD Numbers of BD affiliates on Form ADV to do so on Schedule D, Section 7.A. An adviser listing the name and CRD Number of an affiliated BD-Only firm on Schedule D, Section 7.A, must include "(BD-Only)" after the BD's name in the "Legal Name of Affiliated Adviser" field.
Firm A is a BD firm and Firm B is an IA firm. Firm A and Firm B are listed as affiliates on their respective BD and ADV forms. (See Question 5 above for important information on listing BD affiliates on Form ADV.) An individual is currently registered with Firm A as an AG. Firm B has transitioned the same individual. When Firm B submits the U4 Amendment on the individual, can/should it list Firm A as an affiliate in Question 6, Registration with Affiliated Firms?
No. The system already recognizes the individual as being registered with both Firm A and Firm B. Question 6 should be answered No. Question 6 should only be answered Yes if seeking NEW registration with a firm affiliated with the filing firm.
How does an IA-Only firm list a BD firm as an affiliate on the ADV Form?
The Firm should answer Question 7A(1) as 'Yes,' but ALSO list the BD firm with the firm's CRD Number in Schedule D. The ADV instructions are misleading in that they only ask for IA affiliates to be listed on Schedule D; the firm should actually list IA AND BD affiliates on Schedule D.
An individual is registered as an AG with a B/D firm, Firm A. Additionally, the individual is registered as an RA with an IA Firm, Firm B. Firm B transitions the individual onto the system. What filing type should Firm B choose to update the individual's record?
Firm B should file a Form U4 Amendment for that individual, in order to update the individual's record with that IA firm.
Firm A and Firm B are listed as affiliates on their respective Forms BD. An individual is currently registered with Firm A as an AG (Broker-Dealer Agent). How does the individual register with Firm B as well? What kind of fees will Firm A and/or Firm B incur?
Firm A will file a Form U4 Amendment on the individual and in Section 6, add Firm B as an affiliated firm and choose the appropriate SRO and/or jurisdiction registrations that the individual will hold with Firm B. When the Amendment is submitted, Firm B will be charged fees for the SROs and jurisdictions selected. Firm A will not be charged any fees.
Firm A and Firm B are affiliated, and both firms are "joint" BD/IA firms. An individual is registered as an AG and as an RA with both Firm A and Firm B. Should both firms transition that individual?
Yes. Both Firm A and Firm B should transition the individual.
An individual is registered as an AG with a BD firm and as an RA with an IA firm. He/she holds a Professional Designation that the IA firm indicated when filing the Form U4 for the individual. When the BD firm attempts to file a Form U4 Amendment to update his/her record, he receives a completeness check indicating that the firm cannot select a professional designation without also selecting an RA position. What can the BD firm do to avoid this completeness check message and submit a Form U4 Amendment?
The BD firm needs to uncheck the Professional Designation when submitting the Form U4 Amendment. When the IA firm needs to update the individual's registration for any reason, it can re-check the appropriate Professional Designation at that time. The firms will have to continue to check and un-check the Professional Designation box as necessary to pass the Completeness Check.
