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.
In this week’s Ask An AdvisorLaw Expert, we talk with our President and Founder, Doc Kennedy, MBA, J.D., about how advisors can seek restitution against broker-dealers and wirehouses and reclaim their reputations.
If you have been blindsided by a new customer complaint or threatened with negative FINRA Form U4 or U5 language, contact AdvisorLaw today. Potential employing firms are hesitant to hire advisors with Form U5 termination disclosures indicating anything other than a “voluntary” separation from a firm.
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Transcript:
Well you and all advisors like you have the right and the opportunity to seek redress of any grievances from former employers. You would do so through FINRA’s Dispute Resolution forum. Typically, what we’re seeing in regard to wrongful terminations are primarily of one or two categories: (1) age discrimination; and (2) defamation related to the information published to the CRD system regarding that termination. I would strongly encourage you to discuss with an attorney what potential damages could result from that termination. Many times, there are quantifiable damages: loss of revenue, business streams of income, trailing revenue, etc. And in addition to that, you may have some damages related to the harm to your character and reputation among your peers.