It is crucial to ensure that your background screening process aligns with the regulations and legal frameworks of a FINRA-regulated financial institution. At Globeia, we have a trained team to provide comprehensive FINRA background checks customized for brokerage agencies and security firms across the United States. To get detailed insights on FINRA background check requirements, get in touch with us as soon as possible.

What is a FINRA Background Check?

One of FINRA's major regulatory duties is to protect investors, which is partly done by requiring member firms to conduct thorough background checks. Financial institutions in the registration system must thoroughly vet all potential hires to ensure the exclusion of those with regulatory infractions or criminal records, regardless of their role's registration status.

During the registration process, firms need to submit FINRA Form U4 and the applicant's fingerprints to initiate the FINRA background check process. As per FINRA Rule 3110(e), securities firms are required to verify Form U4 information through a thorough background investigation.

If an applicant has worked with a registered member firm (within 30 days), the firm must review and confirm the information on Form U5, which is filed upon a registered broker's termination. Brokerage institutions are required to verify the accuracy of these forms by cross-checking them with publicly available records. Contact us to know all the answers to your FINRA background check questions.

What Information Does a FINRA Background Check Reveal?

A FINRA Employment Background Check covers several key areas as listed.

Criminal background
Bankruptcy filings
Liens
Civil judgments
Applicant's personal details like name and address
Business records

These are the building blocks, but FINRA member firms are urged to go beyond these fundamental aspects. They typically conduct name-based and fingerprint-based searches, supported by other screenings for a comprehensive inquiry.
Besides the crucial checks associated with FINRA criminal background check, it is suggested to include the following.

Verification of educational credentials
Confirmation of employment history
Validity of professional licenses
Scrutiny for any government sanctions
Pre-employment drug screenings

How Long Does a FINRA Background Check Take?

The total duration of a FINRA background check may differ depending on a number of factors. It includes the complexity of the person’s background, the completeness of the submitted information, and any problems that may occur during the review process. On average, a FINRA background check employment history can take from a few weeks to several months to complete. This includes checking employment history, criminal records, and regulatory violations. Delays can be caused when further information is needed or when conflicts that need to be clarified arise. It is vital that individuals give correct and complete information to speed up the procedure.

How Far Back Does a FINRA Background Check Go?

The period of time for which a FINRA background check will be extended is not universally specified. When Form U4 is submitted, each aspect has its own particular time requirements. Hence, firms should carry out exhaustive probes while abiding by both federal and state rules and regulations.

When the context is about criminal records, the search should cover all convictions or pending processes associated with the applicant unless the records are sealed. Generally, this involves the date, description of the offense, and the crime level (whether felony or misdemeanor).

For bankruptcy filing, there is a mandatory reporting period set by the FINRA. Candidates must reveal any personal bankruptcies within the last ten years. Also, they should reveal any liens and civil judgments during the specified period. In regard to the employment history, the applicant's U4 should cover the last five years of their work experience. In addition, companies are encouraged to take steps to verify educational background and professional licenses. Any sanctions imposed by the government at any given point would also be noted.

FINRA Criminal Background Check Requirements

Financial institutions must conduct thorough background checks on broker applicants and authenticate the data provided in Form U4. Following this diligence, they can proceed to submit Form U4 to FINRA's Central Registration Depository (CRD). The CRD meticulously examines the form, identifying any inconsistencies and confirming the applicant's eligibility for registration, ensuring they are not subject to statutory disqualification.

Know About the FINRA Background Check Rule

FINRA Rule 3110 focuses on the supervision of associated persons by member firms. It mandates that each member establish and uphold a supervisory system aimed at ensuring compliance with relevant securities laws, regulations, and FINRA rules.

The ultimate responsibility for effective supervision lies with the member firm. The rule delineates various requirements concerning the firm's supervisory system, written procedures, internal inspections, transaction reviews and investigations, and the obligation to scrutinize applicants for registration.

Amendments to FINRA Rule 3110(e) background check in 2015 imposed further obligations on financial firms regarding the vetting of their applicants' backgrounds. Prior to the rule amendment, FINRA-regulated firms were obligated to scrutinize an applicant's experience, qualifications, business reputation, and character. However, following the amendments, these firms are now required not only to investigate an applicant's background comprehensively but also to validate the accuracy of the information provided on their FINRA u4 background check form before it is submitted to the CRD. We help you understand FINRA Rule 3110(e) background check requirements in detail.

Trust Globeia’s FINRA Background Check services

Navigating FINRA background checks can be intricate and resource-intensive, particularly for recruiters and sizable firms. Opting to outsource to a dependable third party such as Globeia for extensive background screenings on large batches can yield considerable time and cost savings, thus enhancing the efficiency of the hiring process and minimizing time-to-hire.

Globeia provides a range of background checks, extending beyond criminal record inquiries to encompass reference checks and verification of employment and education history. Reach out to us today to optimize your background screening procedures. One of the most effective methods for guaranteeing thorough, precise, up-to-date, and FCRA-compliant background checks is to collaborate with a trusted third-party service such as Globeia.

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We are honored to have served thousands of customers just like you who place their trust in our services.

"Highly recommend the services of Globeia I had contacted many professional firms to have my documents legalized and decided to trust Globeia for the legalization of my documents. Their processing system was very customer focused. They provide a five star service in today's virtual world."

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Frequently
Asked Questions

How Can Globeia Assist Me with the FINRA Check?

Since July 2021, FINRA has recognized Sterling Identity as its preferred provider for submissions. Globeia’s channeling partner is a registered and approved vendor with Sterling Identity. This allows us to offer comprehensive and reliable FINRA background check outside U.S services.

How Long Does It Take FINRA to Update a Candidate’s Status in the CRD/FPRD?

FINRA will normally update the background check status in the web CRD/FPRD within 24-72 hours.

How do I Check the Status of a FINRA Candidate’s Background Check?

Upon receipt of the FBI background check results, FINRA will promptly update the candidate's status in the Web CRD/FPRD system, making the results accessible for review.

Why are a FINRA Candidate’s Fingerprints Marked “Illegible,” and How Do I Fix It?

Fingerprints for FINRA background checks may be considered illegible due to various factors, such as worn fingerprints that fail to capture sufficient ridge detail, leading the FBI to deem them illegible. In the event that a candidate's fingerprints are marked as illegible in the Web CRD/FPRD system, the candidate will be required to resubmit their fingerprints for processing.

How do I Submit My Fingerprints to FINRA From Outside the USA?

If you are required to submit fingerprints for a FINRA background check outside U.S., you must provide Rolled Inked Impressions. It's important to note that FINRA no longer accepts Digital Fingerprints from individuals outside the United States. Therefore, ensure that your fingerprints are taken using rolled inked impressions before submission.

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