Form U5 - How Do I Get A Copy?

As a former employee of a firm how do I get a copy of my Form U4 or Form U5?

“The Form U5 is filed by the firm that registered you. You should contact the firm that submitted the Form U4 or U5 on your behalf (typically the licensing or registration department) to obtain a copy of the form. If the filing firm is no longer in business, please contact NASD at (301) 590-6500 for assistance.” – NASD website

If you are interested in getting a copy of your Form U5 then you may be interested in the following information.

More and more, Zamansky & Associates have been seeing an increase in cases in which departing brokers are disputing the derogatory statements that have been placed by their former employers on their U-5 termination forms. This kind of regulatory record defamation is a serious matter and in these cases of broker defamation, defamatory U5’s may be resulting in wrongful termination and can hamper a terminated broker’s ability to find a position at a new firm. All current NYSE brokers could be the future victims of this sort of U-5 defamation.

Many Wall Street firms are engaging in an unlawful practice of filing false and defamatory Form U-5s for their departing broker and trader employees in order to "blackball" the employee from the Securities Industry. A terminated broker or trader may have a valid legal claim against their former employer for U-5 defamation. Such employees can bring their claims in arbitration for U-5 defamation and seek compensatory and punitive damages and an order from an arbitration panel ordering expungement of false and defamatory language from the employee's Form U-5.

Where a brokerage firm files a Form U-5 which contains false and defamatory language about the reason for an employee's termination or resignation, they have violated the employee's legal rights by not accurately disclosing the circumstances for the termination. Brokers bringing Form U-5 defamation claims need to establish in arbitration that the reason given by the firm for the termination (and the employee's conduct leading up to the termination) differs significantly from what actually occurred.

Often employers file false and defamatory Form U-5s against their employees in order to punish them for leaving the firm, to cover up for senior managements missteps or to hinder the ability of a former broker or trader who seeks to compete at a new firm. Where such evidence of "malice" or bad intent can be established, an employee is likely to prevail in arbitration on a claim for Form U-5 defamation.

Arbitration is the most effective and efficient means for a broker or trader to recoup back salary and bonuses, compensatory damages, a clean slate and a clear conscience.

Unfortunately, there is no formal process where you can comment or dispute defamatory statements made on your U5 until after it is filed. Thus there is no mechanism to catch rogue broker-dealers who file false defamatory U-5s on brokers. Thus former representatives end up being helpless since regulators accept at face value whatever derogatory statements firms write.

In instances where you are looking at obtaining a copy of your U5 form because you believe you have been the victim of a false U5 or defamatory U-5 form, Zamansky & Associates can be of assistance by providing U5 arbitration, or in a case of a U-5 wrongful firing determination help you win a judgment for removal of negative and defamatory comments on your U5 form.

“The Uniform Forms U4 and U5 are used by broker-dealers to register, and terminate the registrations of, associated persons with self-regulatory organizations (SROs) and the jurisdictions. Forms BD and BDW are joint forms used by the Securities and Exchange Commission (SEC), SROs, and the jurisdictions. The forms are used, respectively, to register and to terminate the registrations of broker-dealers.”
- Source: NASD

The U-5 form makes it mandatory for a brokerage to disclose whether a termination is voluntary or not, and whether or not the salesman is the subject of customer complaints or an investigation.

Registered representatives and terminated brokers have complained that the defamatory statements made on Form U5 regarding the reasons for their termination have libeled them. These defamation claims for critical and derogatory employer statements on false U-5/U-5 termination forms have even won multimillion-dollar punitive damage awards against their former firms. The disclosures made on the U5 Form as well as complaints against the individual on the U-5 Form and U-5 wrongful firing cases are becoming the source of an increasing number of cases of litigation and/or arbitration.

Victory in such broker defamation cases of wrongful termination is critical to help make up for the hardship that may come in the form of a tainted reputation, lost clients, and the ability to land a job at a new firm at the NYSE or elsewhere. Any indication of a problem on the U5 can put a broker out of service and also hold up licensing at the state level.

Because of these regulatory and compliance records, production is not only the single criteria by which brokers are evaluated. Even minor matters unrelated to fraudulent activity or misrepresentation could add significant time to the process of job-hunting. The fact is that even small amounts of broker defamation on the U-5 form can cause a presumption of guilt.

If there are two complaints or defamatory statements made about the broker on the U5 form it can significantly affect the time necessary to find a new brokerage. Brokerage defamation on this regulatory form of any sort can negatively affect a broker’s ability to find a new firm for years to come. More than three complaints or defamatory statements made on the U-5 Form and it can seriously affect the broker’s ability to find new employment.

This is why it is extremely important to vigorously pursue employers who a former representative believes has made false, derogatory statements on the U-5 form. Something as small as a check mark in the “Yes” answer box on the U5 indicating a pending investigation at the time of termination can negatively affect a broker’s ability to find a new firm. In the past this type of investigation was often dropped when the representative left the firm however in this new situation there may never be a resolution to it. A broker’s record can be clear until the day he leaves the brokerage house and then the U5 form can be filled with every small mistake he or she ever made. U-5 defamation and U5 wrongful termination may be the result.

Firms are now being pressured to report everything to assure compliance with both U-4 and U-5 disclosures (The U-4 is the industry application form where other non-termination disclosures are made). The tendency therefore is for firms to err on the site of caution and disclose everything no matter how minor, however when the company does this the broker may have a case for wrongful termination or defamation.

Solutions You Should Prepare For and Consider:

This is where Zamansky & Associates can be of help should you suspect a possible defamation on your U-5 termination form.

Preventing and disputing a negative or derogatory statement on your U-5 is easier than trying to correct the matter after the fact, Zamansky & Associates can work with the firm to ensure an accurate filing and prevent defamation of character.

If a derogatory U5 has already been submitted, Zamansky & Associates can work with you on the dispute and speak with your former employer to amend your U-5 termination information in the "registration comments" section of the regulatory database known as the CRD system. In this case, with the approval of the NASD, it may be possible to change the reason and explanation for your termination in the registration comments area if it turns out the original filing was made in error.

Are you a victim of U-5 defamation or wrongful termination? Zamansky & Associates can help you win a judgment for removal of negative and defamatory comments on your U5 form. Zamansky & Associates can assist you in filing an arbitration claim and ask for an order of expungement from the arbitration panel. Zamanksy & Associates can help you avoid the long wait for a hearing by working with the brokerage firm in the case of a disputed U-5s to settle prior to a hearing, without damages, and with the firm agreeing to expunge derogatory statements from the broker's record.

Protect your future, avoid defamation by your previous employer and expunge derogatory statements that can negatively affect your future, call Zamansky & Associates today.

Contact Zamansky & Associates