FINRA Board Approves Rule Changes For Background Checks at Registration

The Financial Industry Regulatory Authority’s Board of Governors April 24 approved amendments to the organization’s supervision rule that would increase the obligation of firms to check the background of registration applicants.

Among other changes, the amendments to Rule 3110 would require FINRA broker-dealer members to verify the accuracy and completeness of the information contained in Form U4, the broker-dealer registration form.

In a release, FINRA said it also plans to perform an initial search of public records for all registered representatives, and a search of publicly available criminal records for registered individuals who have not been fingerprinted in the last ...