Manager Threatening MY U4?

2 replies [Last post]
jzp5057's picture
Offline
Joined: 2010-11-04

 Dear all, I recently received a job offer at a different firm. After telling my manager at my current firm that I will be taking the new job he spent over a week trying to convince me to stay. Nothing that he offered convinced me enough to want to stay and in his final attempt he threaten to call my new firm and tell them not give me the job and also that if I handed in my resignation letter before he said I could he would put a mark on my U4. Yesterday I handed my resignation letter to our licensing coordinator without telling my manager. She assured me that there is nothing that he can do.Is there anyway he can "mark" my U4 even if I did nothing wrong and or call my new employer to convince them not to hire me ?  

FADavo's picture
Offline
Joined: 2011-06-27

/

rrbdlawyer's picture
rrbdlawyer (not verified)

Dear all, <<I recently received a job offer at a different firm. After telling my manager at my current firm that I will be taking the new job he spent over a week trying to convince me to stay.<<COMMENT: Just by way of helping users of this forum, talk to enough veteran industry lawyers and we will tell you to make sure that you leave immediately, if not sooner, upon notifying your current firm (obviously subject to any professional obligations and prior-notice requirements).  <<Nothing that he offered convinced me enough to want to stay and in his final attempt he threaten to call my new firm and tell them not give me the job and also that if I handed in my resignation letter before he said I could he would put a mark on my U4.>>COMMENT:  It is a violation to threaten to wrongfully mark-up a U4/U5.  See this article for some guidance: http://www.brokeandbroker.com/936/finra-arbitration-punitive-u5-weg/  <<Yesterday I handed my resignation letter to our licensing coordinator without telling my manager. She assured me that there is nothing that he can do.>>COMMENT: I often recommend that my clients resign via email, which contains both a date and time of submission.  In some cases, an RR will "resign," say on Friday, January 1 at 3PM but the following month a U5 shows up that says he was fired on January 5 or permitted to resign on December 31.  An email may help refute such misstatements.  Another option is to timestamp the resignation letter (usually in the trading room or wherever a timestamp may be available) and also stamp a conforming copy for your records.  This way, if and when your employer produces the resignation letter it will reflect the stamped date/time.  Playing games with the date/time of your resignation is one way to shift some of the nastiness from the U5 onto your U4 -- particularly if the firm wants to note that you are "currently" under internal investigation before they submit a U5 noting that you were fired or PTR'd.<<Is there anyway he can "mark" my U4 even if I did nothing wrong and or call my new employer to convince them not to hire me ? >>COMMENT: Without question the answer is "yes."  If you can think of something that someone "can" do to you, chances are it can be done -- and probably has been.  Wall Street is filled with stories of retaliation against former brokers, sometimes going to incredible lengths.  Moreover, just because it would require lies and deception to negatively mark-up your CRD/U4/U5 doesn't necessarily stop some of the worst characters in our biz from doing whatever they want to get even or send a message.  Notwithstanding, just because some idiot can do something to you doesn't make it right, doesn't make it compliant, and doesn't make it legal.  Just be careful about what you say, what you write, and what you send to third parties until you get a copy  of you U5.Best of luck!Bill Singer

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Sponsored Introduction Continue on to (or wait seconds) ×