What Information Does the Financial Industry Regulatory Authority Look for in a Background Check?


Quick Answer

The Financial Industry Regulatory Authority background check looks at all available public records to confirm the information a broker provides on an application for a position at a securities firm, ranging from name and past occupation to the presence of any legal violations. Firms also look at the reasons for the applicant's termination or departure at previous firms, when necessary.

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Full Answer

Any time a securities trading firm hires a new broker, it must conduct a background check and fill out Form U4 to check the validity of all claims that appear on an application or that come up during an in-person interview. The check looks at all available public records, which can vary between states and over time, based on public record structures. As such, the Financial Industry Regulatory Authority does not outline specific locations to check, instead offering general types of details to check, such as the applicant's name and address or the presence of any pending court litigation.

Firms also research the applicant to find out if he has a criminal record, through the presence of one may not immediately prevent the broker from participating in securities trading. Similarly, firms research whether an applicant previously filed for bankruptcy or has any issues relating to financial hardships that may affect the job.

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