As Iām 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 āascertain by investigation the good character, business reputation, qualifications, and experience of an applicantā 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.Ā Such enhancements will allow member firms to rely upon FINRAās verification process for purposes of compliance with the requirement to conduct a search of public records relating to bankruptcies, judgments and liens.
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