Now that broker and investment advisor representatives’ (“IA representatives”) records are made public through the FINRA BrokerCheck website, and new FINRA rules require firms to include a link to BrokerCheck on their websites for viewing by retail investors, it is extremely important for brokers and IA representatives to protect their professional reputation from being tarnished by false or erroneous customer complaints, or other negative disclosures. Unfortunately, as brokers and IA representatives are becoming more aware, their firms are only concerned about the firm’s regulatory obligations and are not interested in rectifying the historical disclosures of their representatives.
While every broker and IA representatives has a detailed CRD report, which contains much more information than is disclosed through the publicly available BrokerCheck website, one’s full report with the Central Registration Depository (“CRD”) is what is reviewed by regulators as well as prospective employers and broker dealers prior to considering a broker or IA representative for employment or affiliation. Accordingly, just because your publicly available BrokerCheck profile may not contain negative disclosures, that does not mean that your CRD is “clean”, or that your reputation or employment potential is not compromised.
We know that brokers and IA representatives may have youthful indiscretions that often require disclosure on the Form U4 or the Form ADV Brochure supplement if the broker is associated with an Investment advisor, which can turn into a deal breaker for many broker-dealers, investment advisors and recruiters.
We often are asked “Can I remove this criminal record disclosure from my Form U4?” The answer is, it depends, but you have found experienced securities attorneys who can help.
We regularly consult with brokers and IA representatives regarding criminal disclosure matters, among other Form U4 and Form U5 disclosures, and can assist you with determining whether your criminal disclosure is reportable in the first instance and/or may be expunged from your CRD record. Oftentimes, when the criminal matter never resulted in a conviction, the expungement process can be a fairly straightforward process and completed for a fixed fee or on an hourly basis depending on your specific circumstances.
Likewise, we also help brokers and IA representatives with more complex criminal matters, including where the criminal matter did result in a conviction. Depending on the relevant state laws concerning expungement and sealing the records of your criminal matter, we can work with your criminal defense attorney to make sure the matter can be properly expunged and/or sealed at the state level in order to have it permanently removed from your CRD record and therefore no longer disseminated on BrokerCheck.
If you have questions regarding a criminal disclosure on your CRD record, contact us to discuss your options. Exploring whether you might be entitled to expungement under applicable law could mean a cleaner Form U4, a cleaner CRD record, and eliminating this obstacle from your financial industry career path.
Unfortunately for brokers and IA representatives, there often is no penalty or sanction for customers who make a false accusation or file a frivolous customer complaint. Bur you do have the right to have negative disclosures expunged from your CRD in specific circumstances, including when:
If you have suffered from a false or erroneous customer complaint, contact us to discuss your options. We offer expungement services for a flat fee as well on an hourly basis depending on your specific circumstances. We will investigate the complaint(s) at issue, determine if you have grounds for expungement, and, if appropriate, file a claim in FINRA Arbitration to seek such negative disclosures be permanently removed from your CRD record.
As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.
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I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.
The Securities and Exchange Commission (SEC) has issued updated guidance on its marketing rule, addressing industry concerns regarding net performance requirements, extracted performance, and portfolio characteristics.
Stifel Financial has lost its raiding and breach-of-contract claim against a group of advisors who left its Indianapolis office to establish their own firm.
The Financial Industry Regulatory Authority (FINRA) imposed $59 million in fines in 2024, reflecting a 35 percent decrease from the previous year, according to an analysis by Eversheds Sutherland.
