FINRA will amend its disclosure review procedure to more effectively assist member firms researching prospective hires as associated persons.
Specifically, FINRA will disclose the results of an applicant's bankruptcies, judgments and lien searches to an applicable member firm within 15 days of the date of the applicant's Form U-4 ("Uniform Application for Securities Industry Registration or Transfer"). FINRA will notify the member firm if any information found in the search was different from what was reported in the applicant's Form U-4. Member firms may rely on FINRA's verification process for purposes of satisfying obligations to conduct public records searches of associated persons under FINRA Rule 3110(e) ("Responsibility of Member to Investigate Applicants for Registration").
FINRA will begin this policy on July 9, 2018.
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