Question about Series 7 Sponsorship and Changing Firms

There are no time restrictions for how long you must stay at your current firm after passing the exam. Once you leave however, it will cease to be effective but will not 'expire.' In order to retain your certification, you must be sponsored by a broker-dealer. If you are not sponsored for a period of 2-years, than your certification will expire. Which, begs the question, why are you planning on taking the exam if you are going into consulting?

The Series 7 is "active" for 2 years after you leave the firm that sponsored you, so once you move to another firm within that time frame they will work with you and FINRA to make sure everything is in good order.

The back office licensing departments and HR of both ABC and CDE will process and handle pretty much everything but you should definitely actively participate in that process and ask them questions to make sure ABC doesn't screw you over or anything like that. You can also always call up FINRA and talk to them, I did that a few times.

if unfortunately i got laid off at least id have my 7 to make me a desirable candidate againe

I totally agree that you need to make sure you have a clean U4. Have personal experience to attest to that.

U4 is a form that your old firm files with FINRA to prove you are no longer register with them. So, if this paper gives any other reason for your no longer being registered than "voluntarily resigned" or perhaps "permitted to resign" (I'd double-check this one), you will need to disclose this fact during your registration with all your subsequent sponsors. Worst, of course, is "terminated for...", but anything, really, will screw you up, in two ways:

First, your new employer probably will have a harder time getting your registered (assuming they want you with a dinged record in the first place) - because they need approval of FINRA and of every state securities supervisor... They may have to do explaining, so it really boils down to how much money they think you'll make for them and how much they care about their reputation (i.e. whether they don't mind hiring guys with dinged records - those things tend to add up and affect how the firm is viewed by FINRA).

Second, this record will be disclosed in your public CRD file (brokercheck), meaning all your prospects can see that too and you may have to do explaining. But this is sort of factored in the first notion, your new firm will be weighing this in.

So, your old firm does have quite a leverage on you. BUT: thing is, if they put some crap on your termination record they will need to back it up. That's a serious deal, because it affects your life-time career and earnings potential, so the firm should have a really good reason to do that, otherwise you can go after them and demand damages. Again, I'm speaking from a personal experience here. We haven't even got to FINRA with formal dispute, they settled during a private mediation. But I wouldn't recommend pushing it that far if you can avoid it, lawyers are expensive and it can takes weeks and months.

Bottom line, man, just like The Kid said, make sure to document everything and not to screw up... :-) What I'd personally do (assuming you are in sales), is start shamming out so your old firm would think you are just not up to the task and let you go amicably. No point trying to go against them heads-on, the odds are in their favor.

I would have to agree with WalMart. I think it would be a more valuable use of your time to prepare for your new job. Also, I find it strange that you're worried about getting laid off before you even start.

If you wanted to take it just for the exposure, that wouldn't be too bad... However, I took the Series 79 and 63 exams less then a year ago and the majority of it (which I don't use), I have forgotten. I imagine the same would happen with you and the 7.

That's all I have to say on the subject. Good luck.

I guess so... :-) not really stop, but slow down, get lazy... Look, this is what you've wrote: "What happens if company ABC starts screwing around because they see your potential and are sour about you leaving. Can a company hold up the transfer of my registration?"

So, my understanding, you are concerned about ABC holding you back from moving to greener pastures, because "they see your potential". As I tried to explain, they CAN if they really want to. Another thing, it's rather rare, I've been with 4 different firms and don't see any of them doing that just because they are "sour". I mean, business is business. You will sing a bunch of papers about non-compete and will have to turn over all your client records and all that, that's for sure, but I don't think anyone will try to hold you by threatening to screw with you U4, if you kept your stuff straight otherwise.

With that said, if you are really concerned and want more certainty, then the shamming suggestion is something I would consider. Your perceived potential is the thing you are most in control of here, so it's probably worth considering to manage it to accomplish your task. But it's just me. I realize that you haven't asked for any advice... All I tried to do is to share what I know about U4 resignation disclosures. Hope this helps.

i mean, i just studied for the past 4 weeks for it i am pretty confident i am going to pass, why not take it, it's not going to hurt me at all and i'll have it for 2 years in the event something extremely unfortunate did happen

If you have invested the time already, take it. And good luck.

yeah, i just got the new offer this week and have been studying for the 7 for at least a month by now...thank you