As reported by AdvisorHub:
“A former Fidelity Investments broker’s industry employment prospects improved significantly, after he won last month $500,000 in damages from his ex-employer, his lawyer said.
A December 27-inked ruling by a split panel of three Financial Industry Regulatory Authority arbitrators calls for Fidelity to revise the termination form it filed with regulators when, in 2018, the broker, Ryan Sanghak Lee, a 20-year industry veteran, left its Wayne, New Jersey office. Lee for the last 18 months has not been registered with another Finra member firm.
The two Finra arbitrators in the majority, one public and the other, non-public, called for Fidelity to change the basis of Lee’s termination to “other” rather than a discharge, according to the award.” You can read the rest of the article on AdvisorHub here.
Why this FINRA Arbitration decision matters for financial advisors:
Even a financial advisor with decades of experience can feel the weight of a bad mark on a termination notice. When an advisor is terminated from a position, their Broker-Dealer (BD) needs to file a Form U5. A bad mark on a Form U5 can have devastating impacts on an advisor’s career. This is what happened to Attorney Larry Landsman‘s client. The marks on a Form U5 and on BrokerCheck. 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.
