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.
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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.
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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.
- Juris Doctorate from the University of Denver Sturm College of Law
- Master of Business Administration (MBA) with a major in Finance from the Keller Graduate School of Management
- Bachelor of Science in Business Administration (BBA from the University of Minnesota)
- Former FINRA licenses Series 7, 63, and 55 and former L&H license
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