FINRA-Proposed Rule to Incorporate NASD Rule Regarding Background Investigations into Rulebook (Fed. Reg.)

The FINRA-proposed rule change to incorporate NASD Rule 3010(e) ("Supervision – Qualifications Investigated") regarding background investigations into new FINRA Rule 3110(e) ("Responsibility of Member to Investigate Applicants for Registration") was published in the Federal Register.

The new rule change to FINRA's rulebook would streamline and clarify rule language, and add a provision to require members to adopt written procedures that are "reasonably designed" to verify the accuracy and completeness of the information contained in an applicant's Form U4 (Uniform Application for Securities Industry Registration or Transfer).

Additionally, the proposed rule change adds Supplementary Material .15 ("Temporary Program to Address Underreported Form U4 Information") to FINRA Rule 3110 to establish a temporary program that will issue refunds to members for Late Disclosure Fees.

Comments on the rule proposal must be submitted by October 24, 2014.

See: 79 FR 59884.Related news: FINRA Proposes Incorporating NASD Rule Regarding Background Investigations into Rulebook (September 17, 2014).