The Financial Industry Regulatory Authority (FINRA) requires all brokerage firms to file a Form U5 for all registered representatives. Also known as the Uniform Termination Notice, the Form U5 is then available for Securities Industry Registration for both FINRA and self-regulatory organizations (SRO), including brokerage firms and financial planning institutions and jurisdictions.
FINRA requires this form to be filed within thirty days of a stockbroker’s termination. This can be done electronically through the online Central Registration Depository (CRD). A copy of the Form U5 must also be provided to the terminated broker and/or registered representative within the same thirty-day timeframe.
If you have been let go from your brokerage firm and are awaiting your Form U5, or if you have received your Form U5 and found false information, you may need to get help from a financial industry employment lawyer. Below, we go into further detail about why FINRA requires firms to file a Form U5 and the various types of Form U5 filings there are.
The Purpose of Form U5The financial industry and securities markets are heavily regulated by a number of different government agencies, including FINRA, the U.S. Securities and Exchange Commission (SEC), and agencies within each state.
For this reason, whenever a stockbroker leaves a firm, whether due to a termination, a voluntary discharge, or even death, a Form U5 must be filled out. This provides these agencies with specific information about the conduct of the stockbroker.
Types of Form U5 FilingsThere are three types of Form U5 filings: full, partial, and amended.
In a full Form U5 filing, an individual’s registration will be terminated with all SROs and the state or jurisdiction.
A partial Form U5 filing terminates a broker’s registration with select jurisdictions and SROs. Partial-form U5s do not include disclosure questions or the reason for termination.
Finally, an amended Form U5 filing is used to make changes to an existing Form U5. Such changes might include the reason for termination, amending a disclosure, updating the individual’s residential address, and the date of their termination.
The information contained in a Form U5 can dramatically impact your life, particularly if the information is false or misleading. If you have found information on your Form U5 that could seriously harm your professional reputation or your ability to earn a living, it may be well-advised to consult with an attorney.
Consult with a Financial Industry Employment LawyerIf you are a registered stockbroker who has been wrongfully terminated by your firm, or if you are involved in another type of employment dispute, you may have already or will soon receive a Form U5 filing.
For help understanding what your Form U5 contains, or if you need legal representation to pursue FINRA arbitration for your dispute with your former employer, contact a respected financial industry employment lawyer at Meissner Associates. To schedule your free case review, simply submit the contact form on the right side of this page or give our office a call at 212-764-3100.
Stuart D. Meissner Esq. is an experienced FINRA attorney who has practiced law for over 27 years, including as a FINRA Attorney, Securities Regulator and Prosecutor.