Successful expungement of derogatory references in FINRA Form U5
This month, upon completion of a three-day arbitration hearing, Robert Mitchell and Chris Waznik successfully obtained expungement of all derogatory references in two former Charles Schwab financial advisors’ Form U5 with FINRA.
The Form U5 submitted for our clients indicated that, at the time of their termination, they were under investigation for “violating investment-related statutes, regulations, rules or industry standards of conduct.” The explanation made by the firm on their U5 was “[a]llegations of potential violation of Schwab’s business conduct policy for inaccurate note taking system.”
In its award, the panel found that the claim, allegation or information was factually impossible or clearly erroneous, and was false. The panel recommended that the U5s show the terminations as “voluntary” and that the termination explanation be deleted in its entirety.
We are very proud of this favorable outcome for our clients, whose good reputation in the securities industry was rightfully restored by the arbitration panel.