QUESTION
U5 form references facts but the language is excessive and misleading. Is this a case for a change in wording?
Asked on Apr 15th, 2014 on Securities Fraud - New Jersey
More details to this question:
On the U5 it speaks of inaccurate information being afforded during the pre-hire process. This was during an internal transfer to another position at the same firm so this is misleading as it seems like the information was offered before becoming a part of the firm. Management at my last position mentioned that I need not present the information as it is department specific. Also the words on U5 mention losing trust and confidence which may be considered excessive. It should be amended to just include the facts and not loose language as a effort to defame. Please let me know your thoughts.
2 ANSWERS
Criminal Defense Attorney serving Toms River, NJ
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Edward J. Dimon
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the U5 is crucial to one's employment and future. the language in the U5 must be carefully negotiated. one can have the U5 revised if there is a blatant error. please let me know if we can help with either the negotiation or the revision. we have done both successfully. ed dimon, esq. 732-797-1600 ext 235
Answered on Apr 21st, 2014 at 6:51 PM
Broker-Dealers have a duty to record only accurate and relevant information on the Form U-5. If they present inaccurate or misleading information on your U-5 you may have a claim against them. Here, I have insufficient facts to make a judgment as to whether the firm failed to comply with its duty. If you believe the firm has drafted inaccurate, and thus damaging, information about you on the U-5, you or your attorney should notify them promptly and ask them to change it. If they refuse to do so, you and your attorney should do a thorough review of the facts and the law to determine whether you can compel them to do so via arbitration. If you are successful, you may be able to recover monetary damages as well.
Answered on Apr 17th, 2014 at 11:10 AM