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Why You Should Engage Regulatory Compliance Consultants Before The U5 Filing!

Until the Great Resignation, finance professionals, investment advisers, and registered representatives worked in the same firm for almost all of their careers. After the Great Resignation, however, the number of registered representatives looking for a big career move or even facing termination quite unexpectedly has largely increased. Whatever the cause may be, a firm has up to 30 days before the U5 Filing has to be completed once the investment adviser leaves employment by will or through termination.

A U5 form is a disclosure form that records why the registered representative has left the firm or was removed. This form will go a long way in setting the career of the investment adviser. Future firms where they want to work will check the information that is disclosed on their U5 form, and thus their entire career can be affected by it.

A firm can state any number of reasons for the representative’s termination, such as a violation of the firm’s policy or being forced to resign. All of this can reflect badly when you’re looking for more chances. This is why it is highly recommended to work with Regulatory Compliance Consultants at an early stage in the process. They can provide the right type of guidance that is immensely useful when it comes to termination and moving on.

Consequently, we will look at some of the more common problems that may occur regarding your U5 Filing. Additionally, we’ll take a look at how you can navigate these issues with the help of Regulatory Compliance Consultants.

Unexpected termination after a successful tenure

After serving a successful tenure of over a decade, being terminated can come as a shock. Especially after being promoted multiple times and having reached a senior management position within the firm.

Not only is this going to be a surprise, but it can come with confusion regarding how it will reflect on the U5 Filing. Questions like what the employer is going to state in the u5 form and the effect of that on future employment and career growth tend to be at the forefront of the mind. Say the issue was regarding firm policy, and the adviser and firm are in a disagreement. Before the termination, the main course of action should be to deal with HR and address the concerns and try to solve the matter internally. When this does not reach a desirable end and results in termination, the problem arises.

As you get offers from new firms and other potential employers, they will want to see what your u5 form states, as it will contain all the facts regarding the termination. They will use this form to see if you will be a perfect fit for their form or not. Thus the document is not a simple matter and needs to be dealt with accordingly.

What can help at this point is to engage legal advice as early as possible and, through discussion with the former employer, come to common ground on the language used in the u5 form.

Be proactive!

The proactive approach in this scenario is to work with Regulatory Compliance Consultants and legal counsel as early as the first week of termination. This will ensure that all the communications with the former employer from the early stage are completely anticipatory and put the best step forward.

At this point, all communications and discussions will occur between your legal advisor and your former employer’s legal advisors. Your legal advisor will request your employment records and will discuss and review the u5 form before it is filed. At the end of the day, the company does have 30 days to file it, so the sooner you hire counsel, the safer it is. This bold approach will also give your legal counsel the time they need to interface with their counsel and discuss the u5 disclosure and the reasons stated in the form for the termination.

This discussion in the early stages can also help with negotiations with future employers. With your legal counsel, you might be able to guarantee that you’re also joining a position of seniority in your new company.

The first step after you’ve received your termination notice

You could be a registered representative, investment adviser, or anything else at all. The first thing one should do after receiving your notice is to consult a Regulatory Compliance Consultant. You should be aware that your previous employer or firm has only a limited time of 30 days to file the u5 form after your departure. Thus, it is always wise to act quickly in such situations.

Your regulatory consultant will not only offer guidance and support but will also help you with your expectations after reviewing your case and will be able to assess the inner details as well as ensure all that can be done to find out what type of language your former firm has used in its disclosure.

In addition to this, they can help you draft a response to this disclosure so that a probable employer can view and understand your career growth over time and help you transition to your next firm smoothly and with a positive outcome.


The U5 form is a requirement from FINRA when a termination of a broker-dealer occurs, and the time limit provided to the employer or the firm is only a matter of 30 days. Within this time, to guarantee the best possible outcome for you overall, it is best to work with a regulatory consultant. The sooner you do this, the better.

If you’ve just received your termination notice, then you’ve come to the right place. At MAH Advising PLLC, we’re equipped with everything we need to help you through this ordeal.

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