FINRA Enhances Disclosure Review Process

As I’m sure you already know from reading our previous blogs on the subject, FINRA Rule 3110(e) (Responsibility of Member to Investigate Applicants for Registration) requires that member firms must “ascertain by investigation the good character, business reputation, qualifications, and experience of an applicant” prior to submitting a Form U4 and requesting to associate and register such an applicant with the firm. However, as recently announced, FINRA has made enhancements to its disclosure review process that will make this verification easier than ever.  Such enhancements will allow member firms to rely upon FINRA’s verification process for purposes of compliance with the requirement to conduct a search of public records relating to bankruptcies, judgments and liens.

Read More…

What is Form U4?

Form U4 is the Uniform Application for Securities Industry Registration or Transfer.  Any individual that wishes to register with a broker-dealer or a registered investment advisor must submit the application to become registered in the appropriate jurisdictions and/or SROs.  If any information changes, the individual must update the form appropriately.   Form U4 is comprised of fifteen sections.  The sections include the following: Read More…