What’s it about: Background Checks – New consolidated rules on mandatory background checks for individual registration.
Explanation: The Securities and Exchange Commission has approved FINRA Rule 3110(e), which requires member firms to conduct independent background checks on candidates applying for registration with the member firm. FINRA Rule 3110(e) also requires member firms to adopt written supervisory procedures designed to verify the accuracy and completeness of a candidate’s Form U4.
When is it effective: July 1, 2015
Additional: FINRA rule 3110.15 temporarily allows refunds to member firms assessed late fees for the late filing of responses to Form U4 Question 14M, subject to conditions.
Read the Rule: FINRA Rule 3110(e) effective July 1, 2015 – http://bit.ly/19nyCV6
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Need advice from one of our compliance experts? Contact us for assistance following the new background check rules and filing for your late fee assessment refund.