If you’re a financial advisor and you believe you’ve been unjustly terminated you need to read this article. You may have a claim against your former employer and you need to know the pertinent facts about your situation.
The brokerage industry has a reputation of being tough. But, like any other industry regardless of its reputation, it needs to abide by employment and labor law. Financial advisors are terminated improperly all the time, yet many don’t know the legal recourse they have available to them. There are legal avenues you can pursue to recover damages and clear or prevent any marks from landing on your record. One of the main avenues is through FINRA arbitration. This is due to the likely fact that many contracts between advisors and their broker-dealer employers have a specific clause. This clause is a waiver that states that employment disputes should be settled through FINRA. This however does not mean you shouldn’t seek legal advice from qualified attorneys.
Our firm values its core tenants and values of customized client care. We believe that no two cases are identical and a ‘one size does not fit all mentality.’ We take time to craft unique approaches, dive deep, and present solid legal strategies to all our clients. If you’ve faced wrongful termination give us a call.
What a Form U5 says about your termination
U5 Forms are the employment termination paperwork that your broker-dealer employer must fill out when an advisor is let go from a position. The first thing you want to do after being let go is to inspect your form. You might think that going straight to an employment lawyer is the best way to go if you want to deal with this issue. But, what you need is an attorney well-versed in securities law.
U5 Forms are filled out after an advisor is terminated. However, there is leeway in how an employer fills these out. What does this mean? There’s essentially three categories that a former employer will be placed under. They describe why a person was let go. These three categories are: “Voluntary,” “Permitted to resign,” and “terminated.” Depending on what your former employer chose your U5 form will contain language that varies.
Why this matters for your career as a financial advisor
Any advisor who is terminated by their employer should seek legal counsel. We recommend contacting an attorney with experience in the securities and financial field. The broker-dealer employer has 30 days to file the U5 form with FINRA. It’s important to seek legal counsel because you can get the right advice to negotiate your U5 form accurately. You need to remember the language on this form can be critical and can be seen by future employers and the public.
Larry Landsman has over 30 years of experience under his belt. He’s worked closely in the past and represented advisors who have dealt with wrongful termination. If you’re seeking legal counsel contact our team today.
