Clean U4/U5 and negative CRD

2 replies [Last post]
JIMRICH's picture
Joined: 2009-02-19

How is it possible to have a clean U4/U5 and a negative CRD?If FINRA investigates a temination and finds that there is no violation and the U4/U5 and the U4/U5 remains  clean, then  for what reason does the CRD have to keep negative comments that prevent reemployment?The FINRA investigation proved NO wrong doings.  Why does the CRD maintain the negative comments?Please advise... for I have done nothing wrong and I do not look forward to paying an additional $5K- $50K to prove otherwise.  The investiigation by FINRA should have removed the comments!  Why do I need to continue on and pay these fees?Please advise.Chicago_JoFrom the state of BIG CORRUPTION.  Corruption must stop!  Please contact me if you wish to participate in a CLASS ACTION SUIT,  The people have got to FIGHT BACK for JUSTICE and TRUTH!!!!     

stockattorney's picture
Joined: 2010-09-09

JIMRICH - I am assuming that your firm marked your Form U5 with an adverse termination comment but no Disclosure Reporting Page (DRP).  If there are no DRPs (i.e., no YES answers on your form U5) then the comment will not be visible on BrokerCheck.  This is why it would appear to the public as you having a "clean" record although prospective BDs will still be able to see the adverse U5 comment.  FINRA will not intervene on those comments as they leave it to the BDs.  Also keep in mind that CRD also belongs to the states so they would rather see everything and anything posted on a Form U4/Form U5, which is why they forced FINRA to make expungement more difficult.  They only way to attempt to remove or change the comment is to try to negotiate with the BD or sue them in arbitration.

AAA's picture
Joined: 2011-09-15

Hi JIMRICH, did you ever pursue arbitration against your firm? Thanks

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links
Practice Management Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×