Potential investors and employers can easily find negative CRD disclosures — disclosures can cost money and even careers
BrokerCheck and IAPD
The internet makes it easy for prospective investors to learn about financial advisors’ employment history, certification and licenses, as well as investor complaints, terminations, and regulatory violations. In fact, FINRA cited 40 million visitors to BrokerCheck just last year.
Because of the immediacy and ease of locating these negative disclosures on either BrokerCheck or the IAPD, individual advisors benefit considerably from expungement of a mark that is tarnishing their name and brand.
Pull a snapshot showing your own CRD disclosures here.
FINRA Disclosure Expungement
Since a landmark FINRA ruling in 2009, financial advisors may now seek to have nearly any investor complaint or U5 termination disclosure expunged through an arbitration forum overseen by FINRA.
Luckily, there are several means by which AdvisorLaw can clean up your BrokerCheck or IAPD and ensure that an advisor’s personal and professional reputation are accurately depicted to the public and industry observers.
Customer Dispute Expungement
A FINRA customer dispute disclosure listed on BrokerCheck, as well as many investor complaints listed on the IAPD, can be expunged through the FINRA Rule 2080 arbitration process. Our staff is well versed in the process of obtaining an order of expungement to remove these meritless FINRA investor complaints from BrokerCheck and the CRD (U4 and U5) as if they never happened.
Unauthorized Trading, Investor Complaints, Failure to Supervise, Breach of Fiduciary Duty, Negligence, Suitability, Misrepresentation disclosures - these may all qualify to be cleared from the CRD and IARD records via FINRA Rule 2080 expungement.
How much would losing even ONE prospective household cost you over the life span of the average account?
U5 Termination Expungement
Transition is not necessarily the Best Response
With ever-changing B/D acquisitions, regulatory road blocks, and changing product lines, financial advisors sometimes feel the only choice is to transition to a new firm in order to satisfy the investment needs of their clients.
Despite the clear benefits to both the financial advisor and the investor, transitioning to a new brokerage firm with even a single U5 termination disclosure (Employment Separation After Allegation) has become increasingly difficult. In addition, the amount of compensation given to transitioning financial advisors is typically scaled back as a result of the ESAA disclosure.
Neither the former employer who filed the U5 termination disclosure nor your current employer may unilaterally clear your BrokerCheck and IAPD records. Full removal of an U5 termination must be granted by a FINRA arbitration panel.
Tax Lien Expungement
Few disclosures may negatively affect a financial professional more than a disclosure denoting federal tax liens. Although these may often be caused by medical or family situations that are beyond the control of the financial advisor, investors will simply be unforgiving when it comes to massive tax debts.
Expungement of any IRS liens is a critical step in the race to controlling your own narrative. Whether you’re on a payment plan or need assistance with resolving the debt you’ve already incurred, AdvisorLaw can help. We have proven strategies for resolving back taxes and expunging the liens that plague your public record.