Securities Litigation

After seeking comments last fall, the Securities and Exchange Commission ("SEC") recently approved the Financial Industry Regulatory Authority's ("FINRA") proposed rule governing member firms' verification and investigation of associated persons applying for registration with a member firm. Specifically, the Rule, which is based largely on NASD Rule 3010(e), requires member firms to investigate the qualifications and experience of its applicants as well as adopt written procedures designed to verify the accuracy of the disclosures contained in an applicant's ...

The Financial Industry Regulatory Authority ("FINRA") recently filed a proposal with the Securities and Exchange Commission ("SEC") to amend FINRA's rule governing member firms' background investigations into associated persons applying for registration with the firm. Specifically, the proposed rule clarifies the current investigation procedures contained in FINRA Rule 3110(e) and adds a provision requiring member firms to adopt written procedures designed to verify the accuracy of the disclosures contained in an applicant's Uniform Application for Securities ...