Fidelity Manager Challenges “Misleading” U5 Disclosure Over System Credential Sharing

• Case Outcome: Full expungement granted; the FINRA Arbitrator ordered the "Reason for Termination" changed to "Voluntary" and the removal of all defamatory commentary.
• The Allegation: An Operations Manager was "permitted to resign" for sharing an internal "RAP suppression ID" code with her team—a long-standing efficiency practice known to her supervisors for over a decade.
• The Harm: The disclosure was deemed defamatory in nature, as it falsely implied unethical conduct and created severe employment barriers for a veteran professional.
• Respondent Firm: Fidelity Brokerage Services LLC (opposed the relief during arbitration).
• Legal Standard: Relief was granted based on the defamatory nature of the disclosure, which allows for expungement without a separate court order in intra-industry disputes.

A committed financial services professional in Keller, Texas, with over 25 years of unblemished experience, faced an unwarranted blot on her record from a 2024 internal policy misinterpretation. Supported by AdvisorLaw, she pursued FINRA arbitration to expunge the termination language that was distorting her professional integrity and hindering her career prospects. 

The advisor launched her distinguished career in March 1999. In July 2012, she joined Fidelity as an operations manager for its elite family office, serving high-net-worth clients with a small team under her leadership. By 2013, she received a revised account profiles (RAP) suppression ID code—a tool to prevent unnecessary client statements that was approved for team use. Team efforts to secure individual codes for team members went unfulfilled. Lacking explicit guidance on its handling, the advisor shared her code with her associates to streamline operations—a practice of which her supervisor was aware and never questioned. 

From 2013 to 2020, this approach raised no flags during audits or reviews, and the advisor earned “exceptional performance” ratings in 2021, 2023, and 2024. Mid-2024 surveillance scrutiny led to the advisor’s abrupt termination that November. 

Fidelity’s January 2025, Form U5 stated that she had been “permitted to resign” over an allegation of sharing internal credentials, with no customer harm. This isolated, non-investment-related disclosure—devoid of client impact—misled viewers, implying unethical conduct and causing severe employment barriers, despite the advisor’s otherwise-spotless history. 

The advisor initiated expungement proceedings in April 2025. Fidelity responded in May, opposing relief. A single arbitrator conducted a videoconference hearing on December 4, 2025 in Dallas. After evaluating pleadings, testimony, and evidence, the sole public arbitrator granted expungement under FINRA Rule 2080. As detailed in the award: “The Arbitrator recommends the expungement of the Reason for Termination and Termination Explanation in Section 3 of [the advisor’s] Form U5 filed by Fidelity Brokerage Services LLC... on January 30, 2025.” The Arbitrator dictated that the “Reason for Termination shall be changed to ‘Voluntary’ and the Termination Explanation should be deleted in its entirety.” The Arbitrator further recommended the expungement of all references to the corresponding occurrence and that any “Yes” answers should be changed to “No,” as applicable. The Arbitrator’s recommendation for expungement was based on the defamatory nature of the information.” 

Facing a similar situation? Contact our team today for a complimentary consultation to evaluate your case. Our experts will assess the viability of expungement and guide you through the process.