When a broker-dealer files a Form U4 or U5 with the Central Registration Depository (CRD), customer disputes, terminations, and other disclosures become part of an advisor’s public record and appear both on the advisor’s CRD record, as well as their BrokerCheck profile.
What Triggers a FINRA Inquiry?
FINRA inquiries are primarily triggered by disclosures on the Forms U4 and U5. Many of these disclosures stem from allegations made by a customer or broker-dealer. Some disclosures are financial, and they reference liens or disputes. Others reference arbitrations or judgments against the advisor. When a disclosure is published, and it contains information that leads FINRA to believe that a securities regulation, rule, or industry standard of conduct was violated, FINRA will investigate. Additional sources of FINRA inquiries include referrals from regulatory agencies such as the SEC or state securities boards, cycle examinations of a firm or product, and FINRA’s massive proprietary surveillance programs.
How Will FINRA Rule 4111 Affect Financial Advisors?
Have you ever heard of Rule 4111? Unless you’re an officer at your firm, it’s unlikely that you have. As AdvisorLaw exclusively represents individual financial advisors, we typically have little reason to comment on a proposed FINRA rule that will apply to broker-dealers. However, when that rule is going to significantly affect small firms’ decisions of whether to retain certain financial representatives, it’s time to educate and inform.
$1 million in tax liability resolved by Offer in Compromise
Tax Lien Resolution & Expungement Over $1 Million In Tax Liability Resolved By Offer In Compromise Expungement Award Date: March 10, 2021FINRA Hearing Site: N/AFINRA Respondent Firm: Internal Revenue Service (IRS)FINRA Claimant Representative: Dochtor Kennedy, MBA, J.D., AdvisorLaw, LLC Case Objective: A financial advisor accrued $1,106,032.35 in IRS tax liability over the course of several years. The advisor hired AdvisorLaw …
Frequently Asked Questions
Frequently Asked Questions Frequently Asked Questions New DisputesCustomer DisputesU5 TerminationsTax Disclosures Disclosure ExpungementU4 Customer Dispute ExpungementU5 Termination ExpungementTax Lien ExpungementCriminal Disclosure Expungement FINRA/SEC InvestigationsFINRA InquiriesAcceptance, Waiver, & Consent OrderWells NoticeStatutory Disqualification M&A/LendingPractice Purchase Network (PPN)RIA or Practice ValuationAcquisition Lending Tax Lien Resolution RIA ServicesRIA Registration & SetupRIA Ongoing Compliance General ▸ Whom does AdvisorLaw represent? AdvisorLaw represents all financial …
RIA Compliance
RIA Compliance Complimentary Consultation RIA Compliance Complimentary Consultation AdvisorLaw offers ongoing compliance consulting support to wealth managers and Registered Investment Advisers (RIA) firms with a combined $50+ billion in assets. Is your current online “RIA template service” leaving you feeling exposed to a potential audit? Are you confident that your ADV/CRS forms are compliant and will stand up to …