Massachusetts Proposes Criminal Background Checks for Advisers
The Massachusetts Securities Division has issued a proposal that would require a criminal background check of every person registering as an investment adviser representative. The proposed rule would require each applying person to execute an acknowledgement form allowing the Massachusetts regulator to access the iCori system, an electronic criminal history database. The acknowledgement form would be required in addition to the U-4 and the fee.
OUR TAKE: We expect that Massachusetts will require these criminal background checks, and many other states will follow with similar requirements.
http://www.sec.state.ma.us/sct/sctiar/Request For Comment 03142013.pdf