I was terminated by my firm due to a disciplinary issue that resulted in a 15 day suspension. I’m now applying with a new broker-dealer but I see that the disciplinary matter is already reported on my CRD. I thought I had thirty days before it was reported in order to give me a chance to provide my own comment. Can you help me understand this?
Last December FINRA shortened the time between the filing of a U5 and when the disclosure event will be disclosed to the public. The time was reduced from 15 days to 3 days. (See. Regulatory Notice 15-49). You can still submit your own comment that will be added to the CRD report but, unfortunately, any prospective employer will see the disciplinary matter. Regardless of the shortened time frame, however, firms always had the ability to file the U5 sooner and prospective employers would see the disclosure regardless of whether or not it was being disclosed to the public. Note that there’s an exception to even the three day rule. If an event is reported on Form U5 and the same event is thereafter reported on Form U4 prior to the expiration of the three-business-day period, FINRA will release the information simultaneously upon processing rather than waiting for the three days to expire.
Register or login for access to this item and much more
All On Wall Street content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access