Updating information on my u4
Although the updated FINRA background check requirements may seem daunting, and will most certainly require additional time and cost to complete, the overall process will benefit member firms by providing a clearer picture on the person they are hiring.
To accomplish this, you will need to either take the time to fully explore the availability and access methods concerning public records research or partner with a trusted investigative professional to help maintain compliance. Please send us an email at blog@with topics that you want to hear about, serious topics, pet peeves of yours, and pretty much anything that is on your mind.
In its continuing efforts to combat fraud and provide the public with accurate information on investment professionals, the Financial Industry Regulatory Authority (FINRA) recently implemented changes to its background check requirements for registered individuals.
These changes expand the obligation of member firms to investigate the background of applicants for registration by confirming the completeness and accuracy of the information provided on an individual’s Form U4, the document used to register individuals with FINRA member firms.
With the prevalence of investment fraud, promptly discovering relevant public record information and/or prohibited investment practices is critical to safeguarding your firm in the long run. Whelan has been a professional investigator for over twenty years. We look forward to hearing from you and will do our best to respond. Contact us to explore guest blogging opportunities on our site.
He is a small business owner and the President of Whelan & Whelan, LLC, a private investigation firm specializing in background checks, due diligence, social media investigations, and business intelligence services.
Since there may be some research that will fulfill aspects of the character assessment or public record check requirements, these elements are not mutually exclusive.
This new measure will apply to all initial and transfer Form U4 filings, as well as for individuals who have not been registered with a FINRA member firm for more than two years.
FINRA clarified that, since the scope of available public record information is anticipated to change over time, the regulator stresses reviewing data that is currently accessible to the public.
Such information includes, but is not limited to, general details relating to name and address, criminal records, bankruptcy filings, civil litigation, court judgments, liens, and business records.
Firms will also be required to make a reasonable effort to review an applicant’s most recent Form U5, which provides information regarding the reason for the termination of a registration with a member firm, for any potential claims regarding investment misconduct or other derogatory activities.
To maintain compliance, member firms are responsible for adopting written procedures for verifying the information on Form U4.