Broker- Dealer Law Corner

Broker- Dealer Law Corner

Tag Archives: Form U-4

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

Correlation DOES NOT Equal Causation: PIABA’s Ongoing Quest to Sully the Reputation of Financial Advisors

Posted in Arbitration, Expungement
Today, the Public Investors Arbitration Bar Association (PIABA) published another hit piece on the expungement process.   For those of you interested, you can find it HERE.   Again and again, PIABA issues press releases and reports contending that the expungement process is broken because expungement is granted at an “alarmingly high rate.”  Let’s start with the… 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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