Form U5 Expungement Counsel

Highly Experienced Attorneys For Form U5 Disclosures

Broker-dealers and investment advisers use Form U5, the Uniform Termination Notice for Securities Industry Registration, to report information about their company’s registered representative or investment adviser representative (“associated person”). The data on Form U5 is kept in the Central Registration Depository (CRD) system, where securities companies and regulatory bodies report various disclosure events involving connected people. These instances consist of civil court cases, criminal matters, customer conflicts and complaints, terminations of employment, internal reviews or investigations of a related person, financial issues (such as personal bankruptcy), and regulatory and disciplinary actions.

When an associated person departs a firm for any reason, reporting companies in the financial industry are obligated to file a Form U5. On Form U5, a company is expected to provide sufficient information so that an average person can comprehend the circumstances listed.

Counsel Can Establish Reasonable Standards for The U5 Disclosure Procedure

In reality, the disclosure made in Form U5 after a fired associate adversely affects that associate’s ability to obtain employment with another financial institution. On the other hand, the member company where the associated person worked must disclose information so that a reader (such as a regulatory body, a potential employer, or a client) can understand the reasons why the associated person was fired. 

For instance, it is insufficient to merely state that a connected person was fired for breaking “firm policy.” Instead, the company should specify the policy and give the reader enough specific facts and circumstances to understand what conduct was at issue.

In essence, it makes perfect sense to consult with a skilled regulatory counsel who is knowledgeable of the laws that pertain to reporting firms—as well as the Form U5 reporting process—when it comes to U5 matters. Working with a lawyer during the initial period following termination can give an associated person a thorough comprehension of the overall Form U5 reporting process as well as help to set reasonable expectations, whether the attorney is at the forefront of discussions or works in the background.

An associated person can show that they are serious about the Form U5 disclosures by involving counsel directly in the discussions, as needed. A securities lawyer can act as an informed advocate to make sure that all parties reach an accurate disclosure of the pertinent information.