I assumed Finra would tar and feather this woman and then pull her down the street behind their car, then add a 50 kabillion dollar fine. FINRA By-Laws provide that a firm is obligated to file an amended Form U4 no later than 30 calendar days after learning of the facts or circumstances that cause the firm to amend the U4. Power up your legal research with modern workflow tools, AI conceptual search and premium content sets that leverage Lexology's archive of 900,000+ articles contributed by the world's leading law firms. Upon learning of any unsatisfied judgments or liens, obtain court documents, checks, monthly statements, and any other records to prove payment, to verify the debt’s existence and any satisfaction thereof. The BOM doesn’t want to let her keep her current fee sharing arangement. Log in or Register to post new content in the forum. I am leaning on the side of not bringing her over. Do not be complacent. Thanks BOM. The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client relationship. Although the background investigation must be completed before filing a Form U4, and the public records check and Form U5 review within 30 calendar days and 60 calendar days, respectively, after filing the Form U4, FINRA indicated that these requirements are complementary and not duplicative. I did a search on FINRA’s website regarding U-4 Disclosure, and read something about the maximum fine for late reporting is $300 ($10 per day up to $300). Or if it is all database driven -update the u4 and it automatically waives a red flag at someone’s computer. Questions? She had a fee sharing arrangement with her previous broker (who recently passed away). If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. So whatever the case, check your employment manual and firm's internal policies to make sure there are no disclosure obligations. I think I will need to speak with a larger firm (like Bill’s Stark and Stark). Firms should expect that they face potential liability depending on, among other things, the number of individuals who have unreported events, the number of unreported events, and whether there are aggravating factors, such as prior relevant disciplinary history or the existence of red flags providing notice to the firm of potential reporting issues. And the consequence could still be bad (I don’t know for sure), but I feel that it would be worth checking out (anonymous phone call to FINRA from out of town pay phone). I am worried of someone looking her up (assuming she gets in trouble) seeing a regulatory disclosure and wondering what type of person I am hiring. Number 8860726. So she will need to report it at the new firm. The Form U4 is completed online and submitted through the CRD (Central Registration Depository) system that is operated by FINRA. Reporting Merges with Supervision Responsibilities. Fast forward nearly a year later, we are starting to see the repercussions of FINRA’s search and its discoveries. BUT he is more versed on b/d rules vs RIA rules. [quote=CALI123]I breifly spoke to my lawyer and he thought it was more of a FINRA issue. In its annual Regulatory and Examination and Priorities Letter for 2015, FINRA specifically stated that it expected firms to have procedures in place to ensure timely and accurate reporting. Registered in England and Wales. On April 13, 2020, FINRA issued guidance (found in the Individual Registration Q&A section) stating that a registered person who obtains a loan under the Paycheck Protection Program (PPP) will not have to disclose a “compromise with a creditor” in response to Question 14K on Form U4 if the loan is wholly or partially forgiven under the terms of the PPP. Factors include: number of registered representatives, the number of undisclosed events, and whether there are other aggravating factors, e.g., a prior disciplinary history or red flags. FINRA also noted that broker-dealer failed to document that it reviewed employee disclosures made in annual compliance certifications for reportable events, despite registered representatives reporting being subject to “financial difficulties such as liens.” One aggravating factor was that the firm had been fined $370,000 in 2007 for failing to file timely U4 and U5 amendments and lacking supervisory procedures. Hindsight review prompted by FINRA inquiry, determined that 16 garnishment notices required amendments to 13 registered representatives. I understand her intention, all you needed to say was “southern belle.”. Maybe I don’t completely understand. FINRA has signaled on numerous occasions the importance of this reporting obligation over the past year. Understand your clients’ strategies and the most pressing issues they are facing. I didn’t even think about looking at what the punishment may be. In addition, FINRA stated that they were going to conduct a one-time search on all registered persons to ensure the accurate and timely reporting of material financial information. The firm’s Payroll Department periodically received garnishment notices from judgment creditors, tax levies, from federal or state taxing authorities and/or bankruptcy wage withholding orders and failed to have a process in place to notify the Compliance Department.