FINRA Fingerprinting Services

FINRA Fingerprinting Services

The Financial Industry Regulatory Authority (FINRA) plays a crucial role in regulating brokerage firms and their employees in the United States. One of the key requirements for individuals working in the financial services industry is FINRA fingerprinting, which ensures that individuals in sensitive positions maintain a high standard of trustworthiness and compliance. In this blog, we’ll explore the uses of FINRA fingerprinting, the methods involved, and why this process is essential for the financial industry.

What is FINRA Fingerprinting?

FINRA fingerprinting is a background check process mandated by the Financial Industry Regulatory Authority for individuals in certain roles within the securities and financial services industry. The primary purpose is to verify an individual’s criminal history (if any) and ensure compliance with state and federal regulations.

Who Needs FINRA Fingerprinting?

Individuals who typically need FINRA fingerprinting include:

1. Registered Representatives: Brokers and financial advisors who interact with clients and manage their investments.

2. Firm Employees with Access to Financial Records: Administrative staff who have access to sensitive client data.

3. Supervisors and Principals: Managers and executives overseeing financial operations.

4. Non-U.S. Citizens: Individuals from other countries seeking employment in U.S.-regulated financial firms.

Uses of FINRA Fingerprinting

FINRA fingerprinting serves multiple purposes in the financial industry:

1. Background Checks: Helps identify criminal records, ensuring only trustworthy individuals have access to sensitive financial data and transactions.

2. Compliance with SEC Rules: Securities Exchange Commission (SEC) Rule 17f-2 mandates fingerprinting for specific financial roles to prevent fraud and misconduct.

3. Investor Protection: Ensures financial professionals adhere to ethical standards, fostering trust between clients and advisors.

4. Employment Screening: Many firms use FINRA fingerprinting as a part of their hiring process to meet regulatory requirements.

How FINRA Fingerprinting Works

The fingerprinting process involves several steps, from collecting the fingerprints to submitting them for analysis. Here’s how it typically works:

1. Fingerprint Collection

Fingerprints can be collected through various methods:

• Live Scan: A digital fingerprinting method where fingerprints are captured electronically using a scanner. This is the most common and efficient method.

• Ink and Roll: A traditional method where fingerprints are taken manually using ink and a fingerprint card. This is less common but still accepted.

• Mobile Fingerprinting Services: Some providers offer on-site fingerprinting for convenience, particularly for large groups or remote locations.

2. Submission to FINRA

After fingerprints are collected, they are submitted to FINRA for processing. Depending on the provider, this submission can happen electronically or by mailing the physical fingerprint cards.

3. FBI Background Check

FINRA submits the fingerprints to the FBI, which conducts a criminal history check. The results are then shared with FINRA and the employing firm.

4. Results Review

FINRA reviews the FBI report and determines whether the individual meets the compliance requirements. Firms may also use this information as part of their employment screening process.

Methods of Fingerprinting for FINRA

The methods used for FINRA fingerprinting include:

1. Live Scan Fingerprinting

   • Most popular and widely used method.

   • Fingerprints are scanned electronically, ensuring higher accuracy and faster processing.

   • Reduces errors associated with smudges or poor-quality prints.

2. Ink Fingerprinting

   • A traditional method using ink and fingerprint cards.

   • Suitable for individuals in remote areas without access to Live Scan facilities.

   • Requires manual submission of the fingerprint cards to FINRA.

3. Mobile Fingerprinting

   • Fingerprinting technicians visit the client’s location to collect fingerprints.

   • Ideal for firms needing to process multiple employees or those in remote areas.

4. Third-Party Vendors

   • Many firms use authorized fingerprinting vendors like Fieldprint, IDEMIA, or Accurate Biometrics to handle the process.

   • These vendors streamline submission to FINRA and ensure compliance with regulations.

Cost of FINRA Fingerprinting

The cost of FINRA fingerprinting typically includes:

• FINRA Processing Fee: $30–$40 per submission.

• Fingerprinting Service Fee: $20–$50, depending on the provider and method used.

• Additional Fees: Mobile fingerprinting services may charge an extra convenience fee of $20–$50.

Challenges and Tips

1. Poor-Quality Prints: Ensure hands are clean and dry before fingerprinting to avoid rejections due to poor-quality prints.

2. Processing Delays: Digital submission via Live Scan reduces the likelihood of delays compared to mailing physical cards.

3. Compliance Errors: Always use an authorized vendor to ensure compliance with FINRA regulations.

Conclusion

FINRA fingerprinting is a critical step in ensuring the integrity of the financial industry. By verifying the backgrounds of financial professionals, FINRA helps protect investors and maintain trust in financial institutions. Whether through Live Scan, ink, or mobile services, fingerprinting ensures that individuals meet the high ethical and legal standards required in the securities industry.

If your firm needs assistance with FINRA fingerprinting or wants to explore mobile fingerprinting solutions, reach out to an authorized provider to streamline the process and ensure compliance.