Fingerprinting of Employees

Overview

SEA Rule 17f-2, as well as various CFTC and NFA Rules generally requires that every partner, officer, director, or employee of a broker-dealer and of a CFTC registrant to be fingerprinted and submit his or her fingerprints to the U.S. Attorney General. Firms may obtain fingerprint cards from their SRO (generally FINRA or the NFA) and should submit completed fingerprint cards to the SRO for forwarding to the FBI on behalf of the Attorney General. The principal purpose of this review is to identify individuals subject to statutory disqualification who may be ineligible for registration or whose applications may require additional levels of approval.

Limited exemptions for filing are available. As numerous foreign firms were required to register with the CFTC as swap dealers, and the fingerprinting requirements in many cases conflicted with local law requirements or were simply impractical, the CFTC developed an exemption for foreign persons.

While many of the Enforcement Releases on this page deal with the failure of firms to properly collect or submit fingerprints, we have also linked enforcement cases where the submission of the fingerprints resulted in the uncovering of an individual who had submitted false information on the individual's registration form. These cases are included because they serve as a good illustration of the importance of the fingerprinting process.

Steven.Lofchie@cwt.com's picture
Contributor Organization 
Contributor Title 
Partner
mark.highman@cwt.com's picture
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Senior Attorney

Find

 
Find: 

SEA and SEC Rules

SEA Section 17(f)(2) (Fingerprinting)

 

NFA Rules

NFA Registration Rule 204 (Registration of CFTC-regulated entities)

NFA Registration Rule 205 (Registration of floor brokers)

NFA Registration Rule 207 (Multiple associations)

NFA Registration Rule 209 (Alternative to the fingerprint filing requirement)

NFA Registration Rule 301, Rule 302 and Rule 303 (Temporary licensing)

 

Selected Legislation

Dodd-Frank Section 929S (Fingerprinting)

Other Legislation