FINRA U5 Pre-filing Counseling
Were you terminated by a FINRA member firm and waiting to see how the firm describes your termination on your Form U5 filing?
Reviewing and commenting on a FINRA Form U5 before it is filed, can help prevent any damage it might cause to a terminated representative's career and ensure it is true and complete.
FINRA requires its members to file a Form U5 Uniform Termination Notice within thirty days after one of its Registered Representative leaves the firm. If the Registered Representative was involuntarily terminated or permitted to resign, the member firm must explain the reasons for the termination on the U5.
The termination explanation is placed on the Registered Representative’s permanent Central Registration Depository (CRD) record and, in some circumstances, may even be publicly viewable on FINRA’s BrokerCheck site.
An unfavorable termination reason on a Form U5 may affect a Registered Representative’s ability to find a new employer, harm their relationships with existing and prospective clients, and otherwise damage their professional reputation.
In some cases, it may be possible to discuss the contents of your Form U5 with your former employer before it is filed to ensure that it is accurate, complete, and non-defamatory. Once a Form U5 is filed, it will ordinarily require an order of expungement from a FINRA arbitration panel to fully correct it.
Attorney Jeffrey Kmoch has extensive experience counseling on the appropriateness of Form U5 termination explanations. If you were terminated and are concerned about what your employer may put on your Form U5, call today for a free consultation.
Since FINRA rules only permit firms thirty days to file Form U5s, time is of the essence.