Key Points Regarding CRD and BrokerCheck Expungement for Registered Representatives- Part 4

Posted on August 21st, 2018 at 9:07 AM
Key Points Regarding CRD and BrokerCheck Expungement for Registered Representatives- Part 4

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the fourth in a series of posts to help guide registered representatives through the process of expungement of customer complaints and other false or misleading information on their public record.  

FINRA requires that a rep’s Form U-5 be accurate and complete. In the context of FINRA Disciplinary Actions, FINRA’s Office of Hearing Officers specifically has held that filing a Form U-5 that misrepresents or omits material facts concerning the termination of a registered representative is a violation of Conduct Rule 2100 and IM-1000-1. Even more, for purposes of Section 3 on the Form U-5, FINRA Regulatory Notice 10-39, entitled Obligation to Provide Timely, Complete and Accurate, states, “[a] Firm must provide sufficient detail when responding to Form U-5 questions such that a reasonable person may understand the circumstances that triggered the affirmative response.” FINRA goes on to state:

It is not sufficient for a Firm to report only that a person’s registration was terminated because that person violated ‘Firm policy.’ If a Firm is obligated to report that a registered person was terminated because he or she violated a Firm’s policy, the Firm must identify the policy, provide sufficient facts and circumstances to enable the reader to understand what conduct was involved, and review other questions on the form to determine whether an affirmative response to any other question is required. (FINRA Reg. Notice 10-39)


To further emphasize the importance of full disclosure, the Form U-5 requires an appropriate signatory of a Firm to verify the accuracy and completeness of the information.  This individual accordingly must perform sufficient due diligence to make that verification.

The securities attorneys at Eccleston Law, LLC assist advisors in negotiating the language of U-5 filings, arbitrate actions involving defamatory U-5s and help advisors expunge customer complaints and other false or misleading information. Please contact our law firm at 312.332.0000 for a free consultation.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, crd, brokercheck

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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