FINRA Form U5 Expungement Award:

30-year Investment Advisor Representative seeks FINRA expungement of Form U5 disclosure



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Award Date: April 30th, 2021
Hearing Site: New York, NY
Respondent Firm: Redacted
Claimant Representative: Dochtor Kennedy, MBA, JD


Case Objective:

While working at an RIA in the 1990s, an advisor received a Form U5 termination disclosure from FINRA due to a disagreement with his partners. Today, this 30-year veteran investment advisor representative (IAR) and RIA owner is nearing retirement. He decided to clear his online reputation and protect his legacy before leaving the industry. So he brought on AdvisorLaw to pursue expungement through FINRA’s Dispute Resolution Forum.


Case Summary:

The dispute between the advisor and his partners initially arose as part of a salary negotiation at a previous firm. When the negotiations broke down, two of the partners decided to disband the partnership, as well as the fund they controlled. However, the partnership dissolution needed to be confirmed by all three partners. Our advisor was not in agreement. As a resolution to the impasse, the firm fired him, in order to exercise a clause in the fund agreement that allowed the other two partners to dissolve the fund.


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Nearly two years later, the ex-partner at the firm falsely stated and published that our advisor had been discharged, due to violations of firm rules. The allegations detailed that our advisor was terminated due to “inappropriate activities with respect to the firm.”


Result:

Through oral testimony and affidavits submitted to the arbitration panel as evidence, the panel in this case found that the “[t]ermination [e]xplanation shall be deleted in its entirety and shall appear blank.” Furthermore, “…recommendations are made based on the defamatory nature of the information.” The Form U5 termination disclosure and the corresponding Form U4 occurrence are to be deleted from the advisor’s CRD record.

The advisor achieved a favorable outcome regarding the disagreement between ex-partners from 25 years prior. Such a case is an example of the fact that it doesn’t matter how old a disclosure is — AdvisorLaw can help remove and set right meritless disclosures that have been with you for decades.

This particular advisor can now move into retirement knowing that his reputation is intact, and he can garner top dollar for his practice.




Contact us to discuss AdvisorLaw's New Dispute and U5 Termination Disclosure Expungement services, or fill out the form below for a complimentary consultation: