What Is Form U-5?
The firm, not the individual, is responsible for filing Form U-5, and it must include the reason for termination along with disclosure of any pending investigations, customer complaints, or other reportable events involving that individual. This information becomes part of the person’s permanent record tied to their CRD number and is viewable, in relevant part, through IAPD.
Because Form U-5 disclosures can affect an individual’s ability to register with a new firm, firms should ensure the reason for termination and any disclosures are accurate and complete — inaccurate or incomplete U-5 filings can themselves become a compliance and even legal issue between the firm and the departing representative.