Rule proposal for new hire background checks moving to SEC

Finra is pushing ahead with a rule-change that would require brokerage firms to vet new hires more thoroughly. The regulatory agency sent a rule to the Securities and Exchange Commission on Wednesday that would require brokers to put in place written procedures to verify the accuracy of information contained in an applicant’s U4 form, the foundation for broker profiles on the Financial Industry Regulatory Authority Inc.’s BrokerCheck database. Firms already are expected to review job applicants. The new rule makes that requirement more stringent by forcing them to conduct a search of public records. More in Investment News here.