The Financial Industry Regulatory Authority (FINRA) requires brokerage firms to file a Form U-5 reporting the termination of a registered representative's employment, along with the reasons for such termination within 30 days of the event. This is an important regulatory requirement for the protection of investors that is sometimes abused by a brokerage firm through false answers and defamatory explanations on the Form U-5 in retaliation to a broker's departure from the firm's employment, to avoid competition, and minimize the loss of customers. Notwithstanding the importance of this notice, the attorneys at The Law Offices of Robert Wayne Pearce, P.A. will not stand by and let this process be abused by any brokerage firm when it comes to its broker and investment advisor clients located throughout the country.False Statements And Explanations On Any U-5 Will Harm Your Career
The brokerage firm must indicate on the Form U-5 whether the broker left voluntarily, was permitted to resign or was discharged, and if their reason was other than voluntary, provide a brief explanation. The firm is required to state whether the broker, while employed: was involved in any disciplinary action; the subject of certain investment-related, consumer initiated complaints; was convicted of or pled guilty or nolo contendere (no contest) to a felony or certain misdemeanors; was the subject of a governmental or self-regulatory organization investigation; or was under review by the firm "for fraud or wrongful taking of property, or violating investment statutes, regulations, rules, or industry standards of conduct." The threat of "yes" answers and false explanations on the Form U-5 have been made by brokerage firms to deter early departures, discourage solicitation of clients at the new firm, extort repayment of up-front bonuses, and other nefarious activities. The explanation section of the Form U-5 has also been abused by firms to discourage the prospective employer from hiring brokers, trigger unwarranted FINRA investigations to delay registration, thwart competition, and for retaliation, solely. These false statements and explanations will permanently be on your record and harm your career.Don't Let Any Brokerage Firm Defame Or Extort You When You Leave The Firm
The publication of false statements that harm your business reputation and deter others from doing business with you or otherwise subject you to hatred, contempt, or ridicule may be actionable as defamation. The brokerage's defenses are generally: 1) the statements are true; 2) they were made in good faith and not maliciously or recklessly; 3) the statements are protected by absolute or qualified privileges depending on the state law; and 4) they are barred by statutes of limitation which can be as short as one year in some states. You should consult with an attorney who is knowledgeable of FINRA rules, practices, and procedures and who possesses the skills necessary to deter firms from making any such statements on the termination notice and/or recover your damages. Attorney Pearce has over 40 years experience with FINRA arbitrations and successfully asserting and proving such defamation claims.Free Initial Consultation With Attorneys Who Can Handle Your Form U-5 Defamation Problems
The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in matters involving Form U-5 abuse and defamation problems for brokers and investment advisors and constantly strives to secure the most favorable possible result. Mr. Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.
For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami, and West Palm Beach, Florida and elsewhere.