FINRA’s rule requiring member firms to conduct a public records search to verify the accuracy and completeness of information on a Rep’s Form U4 has been approved and goes into effect in July. The amended rule requires a public records search to be completed no later than 30 calendar days after the U4 is filed.” The public records search must verify the name and address; search criminal, bankruptcy, and litigation records; investigate liens; and review business records. The rule only requires “a national search of reasonably available records.” In addition, the rule requires a review of the individual’s U-5 if they have been registered previously. Please click here to read the full SEC release.
About Red Oak Compliance Solutions
Red Oak Compliance Solutions is the global advertising review software of choice in the financial services industry. It is a comprehensive suite of SEC 17A-4 compliant features that are 100% books and records compliant and provides clients with 35% faster approvals and 70% fewer touches or better. We also offer Smart Review(SM), which solves for the storage and maintenance of disclosures, helping firms reduce risk, decrease review times, and increase the speed of distribution of marketing materials. Smart Registration(SM) automates the licensing and registration management process to help reduce regulatory risk and time spent on manual processes. Overall, Red Oak allows firms to minimize risk, reduce costs, and increase compliance review process effectiveness and efficiencies.