As of December 12, 2015, FINRA will release Form U-5s within three business days of a member firm’s submission, instead of the fifteen days currently provided for under Rule 8312. The current version of the rule was meant to provide the departing registered representative ample opportunity to comment on the disclosure either though a Form U-4 or submitting a comment directly to FINRA. So why shorten the time period?
BrokerCheck, FINRA’s on-line resource, makes certain information on Forms U-5 available to the public. In its never-ending effort for more transparency in the financial markets, FINRA wants this information available to the public faster than in the past, but at the same time providing the departing representative the opportunity to comment on the disclosure event.
Ideally, the representative left voluntarily to seek another opportunity such that the expedited comment period will make no difference. For those who are leaving a firm under less than ideal situations, they will have to move much faster to get “their side” of the story to FINRA.
In this day and age, more and more of the consuming public is using BrokerCheck. If you leave a firm, don’t dawdle responding to the Form U-5. Seek assistance where necessary to make sure your side of the events are accurately portrayed; otherwise, your “good name” may be forever impacted without you having a meaningful opportunity to comment.