Securities Regulatory & Disciplinary Proceedings

Protecting your reputation and your business.

CRD Expungement Proceedings

It is essential for registered representatives to maintain their publicly available record with the Central Registration Depositary (“CRD”) as clean from customer complaints and other negative disclosures as possible. It is equally essential to have their CRD contain accurate information, since misleading information may cause business interference and potentially jeopardize their employment or registration at the brokerage firm of their choice. Kalberer LLP represents registered representatives and broker-dealers in negotiating Form U-4 and Form U-5 language prior to filing, or in arbitrations seeking expungement of Form U-4s and U-5s containing false or defamatory information.

If a customer files a false claim, a claim that is clearly erroneous, or a claim about a transaction in which you were never involved, then you have the right to have that negative information expunged from their CRD. A customer dispute disclosure can be expunged through FINRA’s Rule 2080 arbitration process.

Unfortunately, employment terminations sometimes result in false or defamatory disclosures by brokerage firms. Brokers may also seek expungement of defamatory disclosures made by a current or former employer. After the information is expunged, it is completely and permanently gone from the depository.

If you have a false or erroneous customer complaint, or employer disclosure, contact us to discuss your options. We offer expungement services for a flat fee, as well on an hourly basis.

Broker & Advisor Transitions

Our securities lawyers frequently assist brokers who are transitioning between firms, as well as brokers set up Registered Investment Advisory firms. When an industry professional switches jobs, there is legal risk regarding what constitutes proprietary firm materials and confidential client information. We can help our client’s transition smoothly, navigating the necessary regulatory issues and mitigating legal risk. Our attorneys are well-versed in the regulatory framework of the securities industry, including SEC Regulation S-P.

When registered representatives decide to change employment, they require experienced counsel early in the process to guide them through the complex transition process.

• Broker transitions, including contract negotiations. We have negotiated contracts with every major securities firm and represented some of the largest producers or teams in the industry;
• Assistance to producers with the review of existing agreements and counseling them through the recruiting process;
• Stockbroker employment contracts, including dispute resolution clauses calling for litigation and arbitration of disputes related to breach of contract or severance agreements;
• Comprehensive consultations with retail producers and firms regarding the Protocol for Broker Recruiting and transitions with an eye towards avoiding costly litigation and temporary restraining orders;
• Negotiating and resolving promissory note matters for firms and producers, which includes negotiating payment plans;
• Negotiating/reviewing retention packages and severance agreements.
• Advising on non-solicitation, non-competes and “Garden Leave” provisions in employment agreements.