FINRA Approves Expanded Background Check for Brokers

Posted on May 12th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

FINRA has approved rules to expand the obligations of firms to check the background of applicants for registration, as well as transfers, to verify the accuracy and completeness of the information contained in an applicant's Form U4. FINRA, other regulatory organizations and states use the U-4 to elicit employment background, disciplinary and other information to register individuals, and in turns to make certain information available to investors.

Separately, FINRA also plans to perform an initial search of public financial records for all registered representatives. Additionally, FINRA will conduct a search of publicly available criminal records for all registered individuals who have not been fingerprinted within the last five years. Once those searches are completed, FINRA will conduct periodic reviews of public records to ascertain the accuracy and completeness of the information.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

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