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Abstract: 

FINRA requires member firms to report terminations of registered representatives on a Form U-5. Because the information from Form U-5s is publicly accessible, these disclosures have been the subject of much litigation and arbitration. In this article, the authors describe the background and regulatory requirements of Form U-5 practice. They conclude with a discussion of the recourse available to brokers who believe a disclosure is improper (expungement), as well as the protections available to member firms when a broker claims that a disclosure is defamatory (absolute or qualified immunity).

Keywords: Uniform Termination Notice for Securities Industry Registration (“Form U-5”)

Affiliations:  1: Drinker Biddle & Reath LLP; 2: Drinker Biddle & Reath LLP.