FINRA Rule Regarding Background Checks on Registration Applications (FINRA Reg. Notice 15-05)

FINRA issued a regulatory notice regarding the SEC's recent approval of FINRA's rule change to adopt NASD Rule 3010(e) (Qualifications Investigated), relating to background checks on registration applicants, as FINRA Rule 3110(e) (Responsibility of Member to Investigate Applicants for Registration).

FINRA Rule 3110(e) is based in part on substantially similar provisions in NASD Rule 3010(e) and Incorporated NYSE Rule 345.11 (Investigation and Records), and includes new provisions relating to the verification of information in the Form U4.

The SEC also approved FINRA Rule 3110.15 (Temporary Program to Address Underreported Form U4 Information), which establishes a temporary program that will issue a refund to members of Late Disclosure Fees assessed for the late filing of responses to Form U4 Question 14M.

FINRA Rule 3110(e) becomes effective on July 1, 2015. FINRA Rule 3110.15 became retroactively effective on April 24, 2014, and it will automatically sunset on December 1, 2015.

See: FINRA Regulatory Notice 15-05. Related news: FINRA-Proposed Rule to Incorporate NASD Rule Regarding Background Investigations into Rulebook (Fed. Reg.) (October 3, 2014).