Broker- Dealer Law Corner

Broker- Dealer Law Corner

Category Archives: Form U-4

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The Devil Is In The Details When It Comes To Enforcing Arbitration Agreements With Registered Reps

Posted in Arbitration, FINRA, Form U-4, Registered Representative
It should be abundantly clear to everyone that BDs are required to arbitrate disputes with their registered reps. There are several reasons I can assert this with such a great deal of certainty.  First, and most obvious, there is a rule about it.  Rule 13200(a) of the Code of Arbitration Procedure provides that [e]xcept as… Continue Reading

Quick Hits: That’s Right. The Hits Keep Coming for Registered Individuals

Posted in Arbitration, BrokerCheck, FINRA, Form U-4, Registered Representative
A couple of events caught my attention this week and, since they are related, I thought I’d address them together. On Monday, the SEC announced a proposed rule change to FINRA Rule 8312, the FINRA BrokerCheck Disclosure Rule. Rule 8312 permits FINRA to disclose certain information on BrokerCheck about registered individuals. As many of you… Continue Reading

FINRA’s (Mostly) New Background Check Rule Goes Into Effect July 1

Posted in FINRA, Form U-4, Hiring practices, Registered Representative, Rule 3110
As everyone who studies FINRA’s Regulatory Notices is already well aware, two days from now, FINRA’s rule requiring background checks on prospective registered representatives goes into effect. A lot of what the new rule mandates is not new, but, as there are some things that clearly were not required before, it is worth taking a… Continue Reading

U-4 Omissions and Statutory Disqualification: Much Ado About Nothing

Posted in BrokerCheck, FINRA, Form U-4, Statutory Disqualification
I have discussed in prior blogs some issues with the process of registering individuals, and ensuring that information on U-4 is complete and accurate. To some degree, the debate is a bit silly, if the question is whether there is enough information provided on BrokerCheck. There is a real problem, however, one that is much… Continue Reading

Problems with Registration of Registered Reps, Part 1: Does Anyone Actually use BrokerCheck?

Posted in BrokerCheck, FINRA, Form U-4
I read with great interest the recent flurry of articles in the financial news, including one appearing on the front page of the Wall Street Journal, about the supposed flaws with FINRA’s BrokerCheck due to the fact that it omits from public view some items, e.g., certain misdemeanor convictions and financial issues (unsatisfied liens or… Continue Reading
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