(888) 637-5510

Written by 7:02 pm Blog

FINRA New Review Process – Broker Background Checks


FINRA will conduct a public records search within 15 days of an applicant’s Form U4 filing.

According to the Financial Industry Regulatory Authority (FINRA), the regulator’s new public records disclosure review process will begin on July 9 with financial advisor background checks.

FINRA’s Information Notice, released on May 18, 2018, states that the additional records search will provide added benefits to member firms and registered representatives.

The new review process means that the regulator will conduct a public records search within 15 calendar days from the date of an applicant’s Form U4 (Uniform Application for Securities Industry Registration or Transfer).  This search will provide broker-dealers with information they may not have received from the applicant.

FINRA notes the possible benefits of these changes may be to:

(1) reduce the costs to firms associated with conducting these public records checks, which often involve finding and hiring a vendor;

(2) result in more timely reporting of disclosure information to the benefit of regulators, investors and firms; and

(3) result in a significant reduction of late disclosure fees related to judgments and liens.

FINRA is an independent, non-governmental regulator for all securities firms doing business with the public in the United States. Their mission is to protect investors by regulating brokers and brokerage firms and monitoring trading on U.S. stock markets.

Free Consultation with a Securities Attorney

The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group.

For a free consultation with a securities attorney, please call The White Law Group at (888) 637-5510. To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States.


Tags: , , , Last modified: March 25, 2019