Seattle Advisor Clears 2023 Termination Disclosure From CRD/BrokerCheck

This former advisor from Seattle began his financial services career in mid-1996, maintaining an impeccable record with no customer disputes or termination disclosures for nearly three decades. However, in March 2023, his tenure ended when his firm abruptly terminated his employment. Shortly after, the firm added a disclosure to his public BrokerCheck profile, citing allegations of improperly documenting client interactions and using planning tools without verifying the accuracy of information—actions allegedly taken to influence performance metrics.

Determined to restore his reputation, the advisor enlisted AdvisorLaw to pursue expungement of the disclosure through FINRA Dispute Resolution, aiming to clear his record and reestablish his standing in the industry.

From the time when the advisor joined the firm in April 2021, he consistently performed well and maintained a perfect customer satisfaction score. In June 2022, he transitioned to a workplace planning consultant role. But by late 2022, he began exploring new employment opportunities. Despite meeting assigned performance targets, the advisor received criticism from his supervisor, including a "final written warning" that was in fact his first such notice. When he was informed that his career aspirations were unlikely to be realized, the advisor suspected age-related bias.

In March 2023, just as the advisor was planning to resign for a new role with Merrill Lynch, he was abruptly terminated for alleged poor performance, including claims of inaccurately documenting client interactions and misusing planning tools. These allegations were added to his Form U5 filing, though no client harm or complaints were noted. The advisor challenged the termination and its handling, expressing concerns about his supervisor’s conduct. Nevertheless, he has been living with the scar of a termination disclosure on his CRD and BrokerCheck records ever since.

Prior to the FINRA arbitration hearing, the advisor submitted his Statement of Claim, and the firm submitted a Statement of Answer denying the bulk of the advisor’s allegations. At the hearing, the FINRA Arbitrator listened to testimony and arguments on the advisor’s behalf, as presented by AdvisorLaw’s Peter Lindholm, J.D.

Ultimately, the Arbitrator determined that the statement listed on the advisor’s Form U5 and CRD and BrokerCheck records was “defamatory in nature and tends to mislead[.]” He recommended expungement and, specifically, that the “Reason for Termination entry in Section 3 of [the advisor’s] Form U5” be amended to read “Voluntary[.]” The Arbitrator recommended expungement of the Termination Explanation from the advisor’s Form U5, as well as amendment to the “yes” answers on the form to “no” responses. He specified that the Termination Disclosure Detail and Reporting Pages be deleted from the CRD, in their entirety. 

With his only termination disclosure soon to be removed from his records, and with no customer disputes on his records at all, this advisor will soon be free to take the next step in his career with a newly clean profile.

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.