The Financial Industry Regulatory Authority (FINRA) released Regulatory Notice 15-05 to remind member firms of the new consolidated rules on mandatory background checks for individual registration. As first reported in the January 9 edition of the Corporate & Financial Weekly Digest, the Securities and Exchange Commission 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.
In addition, the SEC approved FINRA Rule 3110.15, which establishes a temporary program to issue refunds to member firms that were assessed late fees in connection with responses to Form U4 Question 14M (unsatisfied judgments or liens).
FINRA Rule 3110(e) takes effect on July 1. The refund program under FINRA Rule 3110.15 became retroactively effective on April 24, 2014, and ends on December 1, 2015.
FINRA Regulatory Notice 15-05 is available here.