Regulatory Notice 07-55

FINRA Reminds Member Firms of Their Obligations Regarding Background Investigations of Prospective Personnel

A critical part of the hiring process in the securities industry is the background investigation of prospective personnel. For instance, background investigations can help member firms determine whether a prospective employee is subject to a statutory disqualification or whether he or she may present a regulatory risk for the firm and customers. It is essential for firms to understand their obligations with respect to background investigations. As such, this Notice reminds member firms of their obligations under FINRA rules.

Questions concerning this Notice may be directed to the Office of General Counsel at (202) 728-8071.