That every worker has a clean criminal record is of some importance to investment banks which is why a stringent background check is a necessary prerequisite for all of their job applicants.

A)That every worker has a clean criminal record is of some importance to investment banks which is why a stringent background check is a necessary prerequisite for all of their job applicants
B)Clean criminal records of their employees is important to investment banks; hence, a stringent background check are necessary prerequisites for employment
C)Because they consider it important that all of their employees have a clean criminal record, investment banks require each job applicant to undergo a stringent background check
D)It is of some importance that all investment banks’ workers have clean criminal records which is why many of them undergo stringent background checks
E)The reason that investment banks require background checks of their applicants is because they require clean criminal records of their employees

This question is totally based on concision , redundancy and modifiers.

Doubt:
Clean criminal records of their employees is important to investment banks, hence, a stringent background .........

Does the 1st clause Clean ....., has a modifier issue because the pronoun their is used before investment bank in the same clause.
In general can we use the pronouns before their antecedents , as in option C.
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I think the issue with B is not a modifier issue as much as a simple subject verb agreement issue. It says "stringent background check are" which is incorrect. should be "is" instead of "are".

Ans choice A: how will you use "His or her"

every worker [Singular] has a clean criminal ....
prerequisite for all of their job applicants = their refers to "investment banks"

1]That every worker has a clean criminal record is of some importance to investment banks which is why a stringent background check is a necessary prerequisite for all of their job applicants

Incorrect which is why - incorrect in usage. WHICH requires a comma to separate the immediate noun it is referring to.

2]Clean criminal records of their employees is important to investment banks; hence, a stringent background check are necessary prerequisites for employment

Check ..are don’t agree. Hence incorrect

3]Because they consider it important that all of their employees have a clean criminal record, investment banks require each job applicant to undergo a stringent background check

Correct

4]It is of some importance that all investment banks’ workers have clean criminal records which is why many of them undergo stringent background checks

“It is of some importance that” is wordy. Hence incorrect

5]The reason that investment banks require background checks of their applicants is because they require clean criminal records of their employees

“ the reason” and “because” convey the same meaning. Hence Incorrect.
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In E,
The reason and because are redundant only one of them should be used.
Thanks Crick my doubt got cleared.
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In the choice mentioned as OA:

" all employees have a clean criminal record"

shouldn't it be:

" all employees have clean criminal records"?

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