IARD System Frequently Asked Questions - Form Filing for IA Representatives
Fingerprint Cards
1. Do IA-only firms submit fingerprint cards to FINRA for processing?
No. IA-only firms submit fingerprint cards directly to the states. Not every state requires fingerprint cards for an RA registration. A firm should contact the relevant state to verify state fingerprint card requirements.
2. If an IA-only firm submits a fingerprint card to FINRA in error, what happens?
The fingerprint card is returned to the firm, and the firm should submit the fingerprint card directly to the state that requires the card.
3. How does a firm complete the Social Security Number (SS#) block of a fingerprint card for a foreign associate that does not have a SS#? Should the firm indicate that the person is "foreign" on the card? Should the firm indicate on a fingerprint card that a SS# has been requested but not yet issued?
The SS# block on the fingerprint card is NOT mandatory. A firm should only provide a SS# on the card if the person has one. If there is no SS# (or the individual is in the process of applying for one), the firm should leave the SS# blank. A firm should NOT write "foreign" anywhere on the card. The "Citizenship" block indicates if the individual is a US citizen or not (providing the country designation where the person was born).
4. Is a foreign national or foreign resident exempt from submitting a fingerprint card?
Pursuant to Section 17(f)(2) of the Securities Exchange Act of 1934 and Rule 17f-2 thereunder, the SEC requires broker/dealer firms to require their partners, directors, officers and employees to be fingerprinted and to have their fingerprints processed, unless they are exempt under those same provisions. A firm is responsible for determining whether an individual or the employing firm itself is eligible to claim one or more of the exemptions specified in Rule 17f-2, and for preparing and maintaining records supporting any claimed exemption as required by the Rule.
5. I am having difficulty getting an associated individual in a foreign country fingerprinted promptly. What can I do?
Pursuant to Section 17(f)(2) of the Securities Exchange Act of 1934 and Rule 17f-2 thereunder, the SEC requires broker/dealer firms to require their partners, directors, officers and employees to be fingerprinted and to have their fingerprints processed, unless they are exempt under those same provisions. If the firm or individual is not exempt, it is the responsibility of the firm to get its personnel fingerprinted and to submit the prints to FINRA for processing.1
Since the implementation of Web CRD, firms typically submit Form U-4 electronically and, by selecting the first radio button in Section 2/Fingerprint Information, simultaneously represent that they are submitting or promptly will submit fingerprint cards as required under applicable SRO rules (see e.g., NASD Rule 1140, which provides generally that firms must submit fingerprint cards to FINRA within 30 days of filing Form U-4). FINRA members have informed FINRA staff, however, that it is difficult to fingerprint associated persons located in certain foreign countries,2 and that they may not be able, therefore, to submit fingerprint cards within the 30-day period prescribed in Rule 1140. Accordingly, FINRA member firms may wish to apply to FINRA for an extension of the 30-day period prescribed in Rule 1140, within which a firm must submit fingerprints to FINRA after the electronic submission of an Initial Form U-4, a Relicensing Form U-4, or a Form U-4 amendment to add a jurisdiction or SRO. In particular, NASD Rule 1140 provides that FINRA may, upon application and a showing of good cause, extend the 30-day period within which a firm must submit fingerprints to FINRA. An application for extension should include the name, address and CRD numbers of the firm and individual, and a detailed "good cause" explanation for the firm's request (e.g., the firm may wish to identify steps that have been taken to attempt to fulfill the fingerprinting requirement). Letters of application may be sent, faxed or e-mailed within the 30-day fingerprint window to:
Richard E. Pullano
Associate Vice President and Chief Counsel
Registration and Disclosure
9509 Key West Avenue
Rockville, MD 20850
Fax: 240-386-4752
E-Mail: fpextension@FINRA.com
FINRA will respond in writing to a request. Please note that the above e-mail address was established solely to receive extension requests in the circumstances described above.
6. The firm employs an individual with a foreign address, and is receiving a fingerprint deficiency for this individual when it attempts to submit an Initial Form U-4, a Relicensing Form U-4, or a Form U-4 Amendment to add a jurisdiction or SRO. How can the firm resolve the deficiency?
A firm submitting an Initial Form U-4, a Relicensing Form U-4, or a Form U-4 Amendment to add a jurisdiction or SRO for an individual with a foreign residential address should select the first fingerprint radio button to acknowledge that a card will be submitted (assuming that an exemption is not claimed and documented). The individual will receive an "Approved Pending Prints" registration status, and the firm will have 30 days to submit the card before the individual's registration will go "Prints Inactive."
7. Is a fingerprint card required for each affiliated firm on a Form U-4 Filing if the affiliated firms are not part of a Simultaneous Filing Group?
No. Only one fingerprint card is required for affiliate firms in connection with the Form U-4 Filing.
8. Is a fingerprint card required for each firm on a Form U-4 Filing, if the filing firms are part of a Simultaneous Filing Group (SFG)?
No. Only one fingerprint card is required for all SFG firms in connection with the Form U-4 Filing.
9. A firm has Non-Registered Fingerprint individuals (NRFs) that it needs to terminate. How does the firm terminate these individuals?
As of Release 4.0, which was implemented March 18, 2002, the personal data (e.g., hair/eye color, weight) are no longer mandatory fields for termination. The firm may terminate an individual by submitting an NRF amendment filing which includes the Date of Termination. FINRA no longer terminates non-registered individuals.
1 In this regard, firms may be able to have personnel fingerprinted at the local consulate or through local law enforcement authorities. Alternatively, firms may also designate persons within the firm to roll fingerprints as necessary.
2 See Exchange Act Rel. No. 45385 (Feb. 1, 2002), 67 FR 5862 (Feb. 7, 2002).
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