California Securities Fraud Attorney Call Today 800-699-1881
California Securities Fraud Lawyer Firm Overview Attorney Profiles Recoveries Obtained Frequently Asked Questions Testimonials Contact Us
information center
Attorney Advertising Disclaimer
Broker Misrepresentation
Brokerage Firms Sued
Structured Products
Hedge Fund Losses
Recognizing Investment Losses
Recovery of Investment Loss
Securities Arbitration
Reverse Convertible
Securities Fraud
Securities Mediation
Securities Litigation
Stock/ Investment Losses
Suitability/ Unsuitability
Unauthorized Trading
Common Claims
Frequently Asked Questions
Attorney Referrals
Video Center
securities fraud blog
legal blog Click here for a free case evaluation. Read our Articles on Securities Related Issues here. have a question resources
contact us
Are you a new client?
10 Avvo avvo badge
If you need help recovering your losses contact us today. View our complete list of brokerage firms and banks we've sued.

Background Checks for Brokers Newest Requirement for FINRA-Member Firms

FINRA approved amendments to the broker regulator's supervision rule that expands the scope of background checks required for FINRA-member firm new-hires. Under the terms of the approved proposal, brokerages will be required to perform background checks on new employees and transfers alike. The reviews also will require firms to verify the accuracy and completeness of applicants' Form U4 submissions.

In an effort to further strengthen the veracity of the BrokerCheck database, FINRA will search public financial adviser databases and other investment and securities industry records and repositories for broker applicant information. Publicly available criminal records will also be included as part of the process.

FINRA is still mulling whether to include broker scores on securities exams as part of the BrokerCheck system, a proposal the Law Offices of Jonathan W. Evans & Associates supports. For instance, a recent Wall Street Journal study found that brokers who fail basic securities exams are associated with a greater incidence of BrokerCheck regulatory disclosures.

BrokerCheck already requires the inclusion of broker 10-year employment history, criminal records for all felonies and financial-related misdemeanors and disciplinary actions, complaints, and civil proceedings such as arbitration or mediation.

FINRA chairman and chief executive Richard G. Ketchum described the rules changes as "important initiatives to improve the accuracy and totality of details reported on a registered individual's Form U4."

The next step for the approved regulations is review by the Securities and Exchange Commission, who will then vote whether to approve the modification.

If you have invested with a broker or financial adviser and lack of information regarding the broker's financial and/or criminal history has led to a course of actions and decisions that have proven harmful to your investments and interests, please call The Law Offices of Jonathan W. Evans & Associates at (818)760-9880 for consultation and investigation.

News: Finra approves background checks for brokers (InvestmentNews)

Categories: Brokercheck, FINRA
The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.