In the securities industry, it’s important for a broker to keep their record clean when it comes to the central registration depositary. It’s critical it be as clean as possible from complaints and negative disclosures. The CRD is the licensing and registration system for the USA Securities industry, and it’s regulatory agencies. There are some events which can trigger firms filing a Form U-4 for it’s current representatives, and a Form U-5 for terminated representatives. For example, when a firm terminates a representative it has complete a U-5 mentioning the reason for the termination. Financial firms and professionals have to amend their Firm U-4 and U-5 when reportable events happen. Depending on the nature of what happened, the time to file an amended U-4 and U-5 can be as little as 10 days. If you fail to file a timely amended Form U-4 and U-5, then this is a violation of FINRA rules, and can result in a disciplinary action taken by the FINRA Department of Enforcement.
The Spodek Law Group represents representatives when negotiating a U-4 and U-5 form, with firms prior to filing it. We also can help provide representation in arbitrations seeking expungement of Form U-4’s and U-5’s which contain either false, or defamatory, information in them. It’s critical for a representative to have their record clean with the CRD, and have no inaccurate information – since this can harm their business and prevent future employment, or registration, at a broker firm. Our U-4 expungement lawyers understand the importance of a broker maintaining a clean regulatory record. Our U-5 expungement lawyers will help you obtain expungement relief from FINRA arbitration panels.
Many brokers have seen their records destroyed due to terminations resulting in false, and defamatory, disclosures. With the vast array of products on the market, many consumers make complaints due to disclosures arising out of products. We frequently see product problems involving complex and extremely speculative investment products which aren’t properly marketed by brokerage firms. FINRA rule 12805, and 13805, establishes procedures which arbitrators have to follow before recommending an expungement under FINRA rule 2080. According to this rule, a broker can get expungement for 1 of 3 reasons:
We can help in representing brokers looking for expungement of customer complaints in their records. Contact us for a risk free consultation.
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