If you have been blindsided by a new customer dispute, ask your firm's compliance who they represent. It is not you.
Customer Dispute Allegations
We are acutely aware of the great many frivolous claims brought by customers (or their attorneys who coach them) in order to score a quick "nuisance settlement." In eight out of ten of these cases, your firm will be looking to settle to avoid litigation.
These disputes may bring several of the following accusations against you:
Conflict of Interest in Representation?
When a customer dispute arises, most broker-dealers will provide the financial advisor with in-house counsel or contract out to a law firm. If you conduct a bit of due diligence, you are likely to find that the attorneys that broker-dealers select to defend their advisors are the same attorneys who represent investors in bringing claims against advisors.
You have a right to ask whose interest your company provided attorney represents. They will tell you that they represent the broker-dealer’s interest, not yours. AdvisorLaw only has one interest in mind: you.
In this case, the broker-dealer settled but our client was not willing to give in so easily. We successfully defended the complaint brought by the investor and his claims were denied in full.
Allegiances fade quickly. Do not let your firm use your U5 disclosure as leverage or revenge.
Act Now: Don’t get steamrolled by a U5 Termination
If you were terminated, or you know that a U5 termination is pending, hiring AdvisorLaw now is critical to ensuring that your interests are represented. If your firm is alleging regulatory or company policy violations, this is merely the first domino to fall in these situations.
We can help address the following factors of concern:
Your chance of continued employment will be at risk because regulators, as well as potential employing firms, will have serious issues, and be hesitant to hire, advisors with any form of U5 termination other than “voluntary."
Negotiating these points now instead of trying to clean them up down the road will save you money and headache.