Securities regulators in the
"The Division believes that it is in the public interest and for the protection of investors to conduct criminal background checks of those individuals seeking IAR registration in order to ensure that the applicant is not subject to a statutory disqualification and has truthfully and accurately disclosed any criminal background required on Form U-4,"
The Massachusetts CORI Acknowledgement Form, which advisor applicants would have to have notarized, would give state securities regulators with a tool to catch any omissions on the U-4 forms that advisors are required to file. Those applications ask advisors to list all felony convictions and certain misdemeanors, irrespective of when the case was resolved.
The Massachusetts Securities Division recently won access to the state's iCORI electronic-database system, giving it the authorization to conduct the proposed background checks.
In its request for comment, the Securities Division is seeking information from advisors about the potential costs and other logistical implications, including privacy concerns, of adding the CORI form to the application process.
The regulations that
In a research note, the consulting firm Cipperman Compliance Services offered a blunt assessment of the prospects for the proposed
"We expect that
The Massachusetts Securities Division is accepting written comments on the proposal for advisor background checks through
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