FINRA Rule 3110 (e) defines broker-dealer hiring practices and requires employee background checks. The Rule sets forth precise requirements about the steps that member institutions must follow to review applicant backgrounds, employment experience, and criminal and regulatory disciplinary histories before onboarding an employee.
FINRA’s document retention requirements are a critical aspect of the compliance obligations for FINRA-member organizations. As with any violations, failure to comply with appropriate records retention rules can result in costly investigations and fines.
Chime is an application that works with banking partners to provide consumer-oriented banking products.
As a newly hired or promoted Chief Compliance Officer or CCO within an early-stage fintech firm, you may find your new job requirements somewhat disorienting. Often, CCOs have extensive experience in other types of organizations, such as more traditional banks, RIAs, broker-dealers, etc., or larger companies that already have robust, well-resourced compliance teams. More mature organizations typically have more familiar needs and challenges as well.
Did you know that you can be held personally liable for your firm’s compliance violations? If a Chief Compliance Officer (CCO) knowingly violates the Investment Advisers Act or engages in wrongdoing, the liability seems clear. But when CCOs lack essential skills and information for the CCO role, even their good faith efforts can become suspect.
