blackroad-operating-system/services/codex/entries/073-registration-workflows.md

Codex 73 — Registration Workflow Spine

Fingerprint: 291cba39fd206b28e195046ec214b2ef53fe709ce083f20a2173139b47e210a2

2.0 Scope & Principles

• Single source of truth for filings, fee clocks, and acceptance dates (IARD/CRD, SEC/State, FINRA).
• Human-in-the-loop before every transmission; automation drafts, humans attest.
• Immutable evidence (WORM) across drafts, submissions, receipts, and deficiency correspondence.
• Escalation on deficiency letters, 30-/45-day timers, or statutory-disqualification flags.

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2.1 Sub-Modules

2.1.1 RIA Registration (State or SEC)

Inputs

• Entity profile (legal name, jurisdiction, ownership, addresses).
• AUM forecast + client footprint (routes state vs SEC registration).
• Supervisory roster; IAR roster with U4 data; disciplinary history.
• Compliance documents (Code of Ethics, Policies & Procedures, Privacy, BCP, etc.).

Processes

1. Jurisdiction routing: decide state vs SEC and which states require firm & IAR registration (IARD decision tree).
2. Generate Form ADV drafts:
   • Part 1 (firm facts, ownership, control persons, business lines).
   • Part 2A/2B (plain-English brochures + IAR supplements).
3. IARD submissions: queue fees, create filing package, gate final submission on human attestation.
4. U4 for each IAR: prefill personal history, exams, fingerprints, disclosures; flag statutory disqualifiers and auto-escalate.
5. Deficiency handling loop: parse regulator comments, assign tasks, track 30/45-day clocks, resubmit.
6. Post-effective tasks: brochure delivery, books & records, signage, Form CRS, advisory agreements, fee billing rules.

Outputs

• IARD receipts (ADV filings), submitted PDFs, fee confirmations, approval/effective notices.
• A dated, immutable Registration Evidence Bundle.

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2.1.2 Broker-Dealer (BD) Registration (FINRA + SEC + States)

Inputs

• Entity + capital plan, business lines, clearing arrangement, supervisory system/WSPs, two principals minimum (unless sole prop), org chart, financials.
• Locations needing Form BR (OSJ/non-OSJ branches), registered persons roster (U4s).

Processes

1. Membership application flow (Form NMA + Form BD) via FINRA Gateway; collect Rule 1014 exhibits (business plan, financials, supervision, tech, clearing, training plan) and queue for Pre-Membership Interview (PMI).
2. Personnel filings: prepare U4, fingerprints, background checks; auto-flag statutory disqualification risks; prep MC-400 if sponsoring an SD individual.
3. Branches: prepare Form BR for each location; mark OSJ vs non-OSJ; ensure resident principal at OSJ; enforce 30-day notice on open/relocate/close.
4. Registration sequencing:
   • SEC BD registration (Form BD; SEC has 45 days to accept/deny).
   • FINRA membership decision after PMI (grant / grant with restrictions / deny).
   • State BD + agent registrations as required.
5. Membership Agreement / Restrictions: capture permitted activities and restriction tracking (future CMA removals).
6. Continuing obligations: designate Executive Representative; Rule 8210 readiness (document production + encryption); schedule net capital / fidelity bond monitoring and CE (reg + firm elements).

Outputs

• Approved Form BD, FINRA Membership Agreement, branch registrations, individual registrations, WSP attestation trail.

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2.1.3 Individuals: U4 / U5 / Amendments

• U4 Intake: identity, 10-year employment, 5-year residence, disciplinary history, fingerprints; verify last 3-year employment & character; manual signatures; 30-day general amendment rule; 10-day for SD-related updates.
• Fingerprints: submit promptly; “inactive-prints” status if not received in 30 days; three illegible rejections → exemption; retain 3 years post-termination.
• U5: file within 30 days of termination; provide copy to rep; amend upon new facts; onboarding firm must obtain prior U5 within 60 days of U4 filing.
• CE: Regulatory Element deadlines with inactive status trigger on misses; Firm Element plan & attestations tracked.

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2.2 Workflow Graph (RIA + BD)

flowchart TD
  A[Choose scope: RIA only or RIA+BD] --> B[Jurisdiction decision: State vs SEC RIA]
  B --> C[Generate ADV Parts 1/2 & CRS]
  C --> D[IARD fee calc + queue]
  D --> E[Prep U4 for IARs + fingerprints]
  E --> F[Submit; handle deficiencies; approval]
  A --> G{Broker-Dealer?}
  G -- No --> H[Skip BD track]
  G -- Yes --> I[Prep Form NMA + Form BD package]
  I --> J[FINRA PMI + 1014 review]
  J --> K[Decision: grant/restrict/deny]
  K --> L[Form BR branches; U4s for reps/principals]
  L --> M[State BD/Agent registrations as needed]

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2.3 Guardrails & Escalations

• Statutory Disqualification Screening: auto-scan U4 data for felony/financial-dishonesty misdemeanors (10 years), injunctions, expulsions; block submission; propose MC-400 path if sponsorship pursued.
• Deadline Bots:
  • Form U5 within 30 days of termination.
  • U4 amendments: 30 days (or 10 for SD issues).
  • SEC Form BD decision SLA 45 days; branch updates 30 days; archive all proofs.
• Two-principal rule: prevent BD submission until two qualified principals confirmed (unless sole prop exception).
• Books/Records & Rule 8210: auto-index evidence; encrypt portable media; store decryption keys separately.

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2.4 Data Contracts (Schemas)

Firm Registration Object

{
  "firm": {
    "type": "RIA|BD|Dual",
    "jurisdictions": ["MN", "SEC"],
    "iard_crd_ids": {"IARD": "xxxx", "CRD": "yyyy"},
    "status": "Draft|Submitted|Effective|Restricted",
    "filings": [
      {"form": "ADV Part 1", "date": "2025-06-01", "hash": "…", "evidence": "…"},
      {"form": "ADV Part 2A", "date": "…"},
      {"form": "Form BD", "date": "…"},
      {"form": "NMA", "date": "…"},
      {"form": "BR", "date": "…"}
    ],
    "deadlines": [
      {"item": "U5 due", "who": "Rep X", "due": "2025-07-10", "rule": "30-day"},
      {"item": "FINRA PMI", "due": "…"}
    ],
    "restrictions": ["No options until ROP added"]
  }
}

Person Registration Object (U4)

{
  "person": {
    "name": "First Last",
    "role": "IAR|RR|Principal",
    "u4_status": "Draft|Submitted|Approved",
    "fingerprint": {"status": "Received|Inactive-prints", "date": "…"},
    "disclosures": [{"type": "Criminal", "age": "…", "details": "…"}],
    "sd_screen": {"result": "Clear|Flagged", "basis": "…"}
  }
}

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2.5 API/Automation Pseudocode

def decide_ria_scope(aum_forecast, client_states):
    return "SEC" if aum_forecast >= threshold or multi_state_logic(client_states) else "STATE"

def build_adv_package(entity, ownership, business_lines):
    p1 = adv_part1(entity, ownership, business_lines)
    p2a, p2b = adv_brochures(entity)
    return [p1, p2a, p2b]

def file_u4(person):
    check_required_fields(person)
    fp = submit_fingerprints(person)
    if fp.status == "inactive-prints":
        alert("Fingerprints missing, 30-day clock")
    submit_u4_to_crd(person)
    schedule_background_check(person)

def prepare_bd_membership(firm):
    require_two_principals(firm)  # unless sole prop
    nma = compile_nma_exhibits(firm)
    bd = form_bd(firm)
    queue_pmi(nma, bd)

def handle_deficiency(letter):
    parse_issues(letter)
    assign_tasks()
    start_clock(days=30)  # adjust per item
    resubmit()

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2.6 Post-Approval Automations

• RIA: brochure delivery logs, books & records, advisory agreements, fee billing controls, privacy notice, Code of Ethics attestations, comms archiving, trade surveillance hooks.
• BD: Membership Agreement permissions, WSP dissemination, OSJ supervision cadence, net capital monitoring, Form BR updates, CE calendar, U4/U5 lifecycle automations.

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2.7 Source Mapping

• Form BD, membership/NMA, PMI, Rule 1014 exhibits; two principals; BR filings; 30-/45-day clocks; U4/U5/fingerprint rules; SD & MC-400; Executive Rep; Rule 8210; CE — grounded in Series 24 material.
• SEC/Exchange registration timelines, Form BD 45-day window, exchange 90-day window, CRD/IARD ecosystem — supported by Series 66 reference set.

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2.8 Human Touchpoints

• Narrative sections of ADV 2A/2B stay human-authored.
• WSP & compliance policies require bespoke counsel review.
• Responses to deficiency letters drafted with human context, automation assembles packages.
• Any statutory-disqualification sponsorship must run through counsel before MC-400 submission.

Tagline: Registration runs on rails, but signatures stay human.