Correcting Form U5 Information - Transcript

The Form U5 is a critical document for brokers, detailing the reasons for their termination and other important information that appears on their Central Registration Depository (CRD) and BrokerCheck records. If inaccurate information is reported on your U5, it can damage your professional reputation and future career opportunities. At Malecki Law, we help brokers navigate the process of expunging U5 information, ensuring public records reflect the truth.

Form U5, or the Uniform Termination Notice for Securities Industry Registration, is filed by a broker-dealer when a registered representative leaves the firm. It provides details about the termination, including whether it was voluntary, involuntary, or for cause. This information is stored in the CRD and made available to the public through FINRA’s BrokerCheck system.

Inaccurate U5 information can have serious consequences, such as:

• Damaging Your Reputation: Potential employers and clients often review BrokerCheck records. Negative or misleading information can harm your credibility and limit career opportunities.
• Triggering Regulatory Scrutiny: Inaccurate allegations on a U5 can attract attention from regulators, leading to unnecessary investigations or disciplinary actions.

Correcting this information is essential to protecting your professional standing and future prospects in the securities industry.

If you believe your Form U5 contains inaccurate and/or defamatory language, you can file a FINRA arbitration to request its expungement. This process involves several key steps:

1. Filing the Claim:
   A claim must be filed against your former broker-dealer. The claim should clearly outline the inaccuracies on the U5 and provide evidence supporting your position.
2. Discovery Process:
   Both parties exchange documents and information during the discovery phase. Documents produced may include your personnel file, performance reviews, relevant policies and procedures, compensation plans, internal emails, and client communications. This step is critical for building your case and demonstrating that the information is false or misleading. Some of these documents will ultimately be used at the hearing as evidentiary support to your claims.
3. Arbitration Hearing:
   A FINRA arbitration panel reviews the evidence and hears testimony from both sides. The panel then decides whether the U5 information should be corrected or expunged.

While this process follows the standard FINRA arbitration framework, it can be challenging and requires thorough preparation. At Malecki Law, we have extensive experience handling U5 expungement cases and have successfully obtained expungements for many clients.

Not all information on a U5 is eligible for correction or removal. The types of information that may be addressed through arbitration include:

• Customer Complaints: Allegations that are inaccurate or unsubstantiated.
• Termination Details: False or misleading reasons for termination.
• Disclosures About Investigations: Incorrect or incomplete information about regulatory investigations or internal investigations.

To succeed in a U5 expungement case, you must demonstrate that the information is inaccurate, false or defamatory, or was reported in bad faith. Malecki Law helps clients gather the evidence needed to meet this burden of proof, including employment records, correspondence, and witness testimony.

Correcting U5 information is not an easy process, and navigating FINRA arbitration requires experience and a deep understanding of securities regulations. Without skilled representation, you may face challenges in proving your case or countering the arguments of your former employer.

At Malecki Law, we provide:

• Knowledgeable Guidance: We understand the intricacies of U5 cases and how to effectively present your claim.
• Thorough Preparation: From gathering evidence to preparing for the arbitration hearing, we ensure no detail is overlooked.
• Aggressive Advocacy: We fight to protect your professional reputation and secure the outcome you deserve.

Our team has a proven track record of success in U5 expungement cases, helping brokers restore their records and rebuild their careers.

If inaccurate information on your Form U5 is damaging your career, Malecki Law is here to help. Our experienced securities lawyers have successfully handled U5 cases for brokers and are committed to protecting your professional future.

Call us today at 212-943-1233 to speak with a New York securities law attorney. You can also complete our confidential online contact form, and we will promptly get back to you. We represent clients in New York, throughout the United States, and across the globe.

If there is inaccurate form U5 information on your central registration depository records, your CRD, your broker check you can actually file a FINRA arbitration to expunge inaccurate information.

There’s a set of rules as to what types of information can be taken off in terms of customer complaints, you can also take things off relating to terminations if you can prove that it is inaccurate what is on your U5.

And it proceeds like any other FINRA arbitration, you file a complaint actually against your broker-dealer or probably former broker-dealer to have it removed. You then go through a discovery process and there’s a hearing.

So, it is not the easiest process but it’s something that we’ve been very successful in obtaining for many brokers over the years.