Having a clean public record in the financial services industry is crucial. This week we’re talking with Harris Freedman, J.D. to discuss the types of disclosures that will naturally fall off of an advisor’s record, versus those that require the advisor to seek FINRA expungement through an official forum, like FINRA arbitration.
- Why Financial Advisors Should Act Now To Remove False Disclosures From Their Public Records
- AdvisorLaw Helps Veteran Advisor Transition to Ideal Firm
- The Importance Of Form ADV Amendments & What RIAs Need To Know
- 70% Of Financial Advisory Firms Considered An Acquisition In 2022
- AdvisorLaw Partners with Financial Professionals Coalition
Because of the immediacy and ease of locating these Form U4 and Form U5 disclosures on either BrokerCheck, the CRD, or the IAPD, individual advisors benefit considerably from the expungement of a mark that is tarnishing their name and brand.
If you’re dealing with a meritless or false disclosure on your record, contact us for a complimentary consultation.
Make sure to follow our FINRA Expungement Showcase page as well as our main AdvisorLaw LinkedIn page to see more of these insightful videos.
Subscribe to our newsletter below, or contact us today for a complimentary consultation!
Transcript:
So it really just depends on the disclosure itself. On the Form U4, there’s a question, number 14, that provides a window for certain disclosures. So for example, question number 14 will ask you about bankruptcies. And if you’d had a bankruptcy on your record for ten-plus years, that would fall off your record naturally — unlike a criminal disclosure, [where] there’s no time window. FINRA can go back as far as they want and ask you any questions about your criminal history. When it comes to tax liens or compromises, those will drop off your record if you pay the lien or satisfy your judgment. However, in a vast majority of cases, which are customer complaints and U5 expungements, those disclosures are more or less on your record permanently, unless you seek the expungement. There are certain disclosures that will not fall off your record naturally, and that would include the customer disputes and U5 termination disclosures. So in order to get those removed from your record, you: (a) have to seek expungement of the false disclosure; or (b) it has to be at least ten years since your registration lapsed.