On May 18, the Financial Industry Regulatory Authority (FINRA) published an Information Notice regarding enhancements to FINRA’s disclosure review process (Information Notice). The enhancements will allow member firms to rely on FINRA’s verification process to comply with the requirement to conduct public searches related to bankruptcies, judgments and liens. Beginning on July 9, FINRA will conduct a public records search within 15 calendar days of an applicant’s submission of a Form U4 and then provide member firms with any information that is different than what was reported on the aforementioned form. Such enhancements are intended to (1) reduce member firm costs related to public record checks; (2) result in the more timely reporting of certain disclosure information; and (3) reduce the late disclosure fees related to judgments and liens.
A copy of the Information Notice is available here.