FINRA's Board of Governors met this week. According to a report from the regulatory organization to firms, some new rulemaking items are on tap.
FINRA reported that the BOG authorized the staff to file a proposed rule amendment with the SEC relating to background investigations for registered representative applicants. According to the notice, firms would be required to "adopt written procedures that are reasonably designed to verify the accuracy and completeness of information contained in the applicant's Form U4...including, at a minimum procedures to conduct a search of reasonably available public records to verify the accuracy and completeness of the information."
Many firms already conduct some type of background review of applicants, but this proposed rule may take things a few steps father. We'll have to wait and see the text of the proposed rule once it is filed with the SEC.
Other reported action from the BOG meeting can be found in FINRA's communication to firms - click the lik above.