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Broker Alert - FINRA to Publicly Report Undisclosed Bankruptcies, Judgments and Liens on New U4’s

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Thursday, May 24, 2018.

Erwin J. Shustak

Erwin J. Shustak

Managing Partner

LocationSan Diego, California
New York, New York
Phone: (619) 696-9500 (Ext. 109)
(800) 496-5900 (Ext. 109)
Email[email protected]

Beginning July 9, 2018, FINRA, the Financial Industry Regulatory Authority, will search public records to determine whether registered reps who move from one firm to another disclosed any prior bankruptcies, judgments or liens.  The move is intended to help member firms comply with a 2015 Rule requiring firms to check individual brokers for those types of disclosure items not previously reported and disclosed.

FINRA will conduct a search of public records within 15 days of a new U4 being filed and will provide the results of that search to the member firm to aid them in their mandatory disclosures.  Many believe this will not only ensure public disclosure of reportable items, but will reduce compliance costs for firms since the mandatory search work will now be done by FINRA.

Shustak Reynolds & Partners, P.C.  focuses its practice on securities and financial services law and complex business disputes.  We represent many broker-dealers, registered representatives, investment advisors,  investors and businesses.  For more information, contact Erwin J. Shustak, Managing Partner [email protected], or call 800.496.5900 ext. 109.

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