FINRA adopts mandatory background checks for new brokers

A rule change requiring brokerages to investigate the backgrounds of applicants for jobs as stockbrokers was approved by the Financial Industry Regulatory Authority. The background checks to confirm information provided on brokers' Form U4 will be required for transfers from other brokerages as well as first-time applicants for brokers' positions. FINRA also plans to review brokers' financial and criminal records to ensure they are disclosing pertinent information.

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