Credit Reports: Is a Background Check to Open a Brokerage Account a Standard Practice

lundi 30 mars 2015

I am asked to sign the following form by a broker who assures me it's standard practice and mandated by FINRA. Supposedly the wording comes from a law firm also working for top-tier institutional brokers gs-jpm-etc. This looks pretty nonstandard and homemade to me, does that even comply with the Fair Credit Reporting Act? Can a broker legally conduct a background check themselves?



Background Disclosure Form



I authorize *** Securities to conduct an investigation or obtain an investigative report about my background. I authorize all of my employers and any other person or agency to furnish any information they have, including my creditworthiness, character, ability, business activities, educational background, general reputation, history of my employment and, in the case of former employers, complete reasons for my termination. Moreover, I release each employer, former employer, any other person or agency from any and all liability, of whatever nature, by reason of furnishing any of the above information, including the information reported on consumer investigative reports and the information reported on the Uniform Application for Securities Industry Registration or Transfer (Form U-4) and/or the Uniform Termination Notice for Securities Industry Registration (Form U-5). I recognize that I may be the subject of an investigative consumer report ordered by *** Securities, and waive any requirement of notification with respect to any investigative consumer report ordered by *** Securities. I understand that I have the right to request complete and accurate disclosure by *** Securities of the nature and scope of the requested investigative consumer report.





___________________ ________________________________

Month Day Year Signature of Applicant



___________________ ________________________________

Social Security Number Type or Print Name of Applicant



___________________ ________________________________

Date of Birth (mm/dd/yyyy) Home Address



________________________________ City State Zip Code





Credit Reports: Is a Background Check to Open a Brokerage Account a Standard Practice

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