Registration Procedures: Form U4, Form BD & Consent to Service
Covers the mechanics of filing Form BD and Form U4, the irrevocable Consent to Service of Process (Form U-2), effective dates, and annual December 31 renewal.
- Form U-2 Consent to Service of Process appoints the Administrator to accept legal papers in civil suits; filed ONCE and is permanent.
- Registration becomes effective at NOON on the 30th calendar day after filing unless accelerated or delayed.
- ALL state registrations expire on DECEMBER 31 of each year unless renewed.
To register as a broker-dealer or agent under the Uniform Securities Act, applicants must submit standard uniform forms: Form BD for broker-dealer firms and Form U4 for individual agents through the Central Registration Depository (CRD).
Every applicant must file a Consent to Service of Process (Form U-2). This legal document appoints the state securities Administrator as the applicant's attorney to receive service of process in any non-criminal lawsuit or legal proceeding. Once served on the Administrator, it has the identical legal effect as personal service on the registrant. Form U-2 is permanent, irrevocable, and is never renewed annually.
Under USA Section 202(a), if no denial proceedings are pending, registration becomes effective automatically at noon on the 30th calendar day after filing. Every state registration expires on December 31 of each calendar year unless renewed with payment of the annual renewal fee.
- Do not think Form U-2 is renewed every year; it is filed only with the initial application and remains permanent.
- Registration granted on December 15 still expires on December 31 of that same year; fees are not pro-rated.
When an applicant files an initial registration application as a broker-dealer, agent, investment adviser, or IAR in a state, the Uniform Securities Act requires the submission of a Consent to Service of Process (Form U-2). What is the legal purpose and characteristic of this document?