FINRA-member firms and brokers across the U.S. have been under immense pressure over the last month since FINRA began its firm evaluations under the new FINRA Rule 4111. Broker-dealers are now essentially given two choices: either (1) keep advisors with BrokerCheck disclosures, and in turn become “restricted” and hit with a long list of limiting requirements and harsh sanctions; or (2) terminate any reps with multiple disclosures — immediately. Evaluations ended on July 11th, and FINRA will now begin informing firms of their designations.
What if I was wrongfully terminated by my broker-dealer?
FINRA’s Form U5 filing requirement is a one-sided weapon that firms frequently employ in their attempts to obliterate financial advisors’ and wealth managers’ careers. We have seen hundreds of cases where advisors were terminated for reasons that were retaliatory, unwarranted, and in some cases, completely false. But there is a way for advisors to fight back against their former employers. …
FINRA Rule 8210 Investigations: How To Respond And Protect Yourself
You just received a letter from FINRA. You may have anticipated the letter, or you may be surprised to get the letter in the first place. If you carefully read the letter, you’ll notice that it was issued to you in accordance with FINRA Rule 8210.
Can I sue my broker-dealer or RIA for damages if I was terminated?
The language a firm uses on a terminated advisor’s FINRA Form U5 can cause irreparable damage to their public record and ability to move to another firm. This week, we talk with our President and Founder, Doc Kennedy, MBA, J.D., about how advisors can recover from a defamatory FINRA Form U5 termination disclosure. Transcript:I can’t speak to your situation uniquely, …
How Advisors Can Bounce Back From A Termination
It seems that more and more high-profile and multi-billion-dollar advisors are being terminated today than in the past. If you’re an advisor, these firings should act as a stark warning. While you may feel safe from termination because you’re ranked highly on Barron’s, hold status within the firm, or maintain substantial assets under management, there are no guarantees — your career is not protected from scrutiny.
What is the process for expunging disclosures from BrokerCheck and the CRD?
Advisors must present their case to an arbitrator through FINRA’s dispute resolution forum in order to have an investor dispute or libelous U5 termination successfully removed from BrokerCheck or the CRD. Our Senior Associate, Harris Freedman, J.D., explains how advisors can get through the difficult process unscathed in our latest Ask An AdvisorLaw Expert video series segment. If you’re dealing …