Becoming a registered representative means being sponsored by a member firm, filing form-u4, passing the securities industry essentials exam plus a qualification exam such as the series-7, and registering in each state where customers live, normally through the series-63.
Everything the representative does is supervised. Communications are reviewed and archived, outside accounts must be disclosed, private securities transactions need firm approval, and recommendations must meet suitability and regulation-best-interest.
The registration record follows the person. Terminations, customer complaints and regulatory actions are reported on the form-u4 and surface publicly in finra-brokercheck, which is why the industry pays close attention to how an exit is characterised.
Related: series-7, series-63, form-u4, finra-brokercheck, suitability