A customer alleges wrongdoing on the part of a registered representative and files a complaint with the broker/dealer. The broker/dealer decides to settle without going to arbitration/trial and pays the client a total of $18,000. What is required in this situation?

Question

Business

Danica Fritz

16 June, 03:07

A customer alleges wrongdoing on the part of a registered representative and files a complaint with the broker/dealer. The broker/dealer decides to settle without going to arbitration/trial and pays the client a total of $18,000. What is required in this situation?

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Answers (1)

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Reginald Hurley · Answer 1

D) II and IV

The settlement must be disclosed on the RR's U-4 for the remainder of the RR's career in the financial industry. The record of the settlement must be made public on the FINRA website

Explanation:

Since the dispute was over a $15,000 amount, the settlement must be recorded using the registered representative's U-4, section 14 I, section 2. This disclosure must contain the information regarding the incident that lea to the settlement and whether the complaint was written or oral. This information must also be uploaded to the FINRA website under the broker check section which includes all the customers' complaints.