FINRA initiated a new process for reviewing public financial records of candidates proposed to be hired as registered representatives by broker-dealer firms.
Under the new process, FINRA will conduct a review of the public financial records for all potential registered brokers after a firm submits a registration application for these individuals. FINRA will conduct the review within 15 days of receiving a registration application. Previously, firms were responsible for the review process, which often required the use of third-party vendors to conduct public records checks. According to FINRA, the new process could save firms up to $3 million annually.
FINRA reminded firms that the new process will not relieve them of the requirement to keep their records current.
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