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Regulation and Compliance > Federal Regulation > FINRA

FINRA’s New Fingerprint Process Starts Dec. 6

By Melanie Waddell

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What You Need to Know

  • The new fingerprint process applies to broker-dealers and funding portals.
  • BDs and funding portals must send fingerprints to FINRA’s designated fingerprint provider, Sterling.
  • Sterling will not accept or process fingerprints from broker-dealers and funding portals before that date.

The Financial Industry Regulatory Authority’s new fingerprint process for broker-dealers and funding portals kicks in on Dec. 6.

BDs and funding portals must send fingerprints to FINRA’s designated fingerprint provider, Sterling, for processing by the Department of Justice.

Sterling will not accept or process fingerprints from broker-dealers and funding portals before that date, FINRA said Wednesday in a notice.

To prepare for the transition, FINRA will cease processing fingerprints for broker-dealers and funding portals from 11 p.m. Eastern time on Nov. 29, 2021, through 6:59 a.m. Eastern time on Dec. 6, 2021, the broker-dealer self-regulator said.

The Securities Exchange Act requires every member of a national securities exchange, broker, dealer, registered transfer agent, and registered clearing agency to require that each of its partners, directors, officers, and employees be fingerprinted and to submit such fingerprints to the U.S. Attorney General for identification and processing.

More information about key dates and required tasks is available on FINRA’s Fingerprint Process Change webpage.

FINRA stated in July that the “benefits of this process change include state-of-the-art technology, processing efficiencies and reduced pricing for firms.”

No increases are associated with the fingerprint processing costs, FINRA said in July.

Firms, FINRA said, may save on vendor-related fingerprinting costs as a result of FINRA’s negotiated rates with Sterling:

- $10.75 collection and processing fee for associated people who go to a Sterling location to be printed.

- Organizations may choose to lease Sterling equipment for an annual fee of $3,500.

Melanie Waddell

@Think_MelanieW

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