Decision on U-5 due Feb. 13th

Feb 3, 2007 4:00 pm

Brokerage firms argue the information on a U5 form should receive

"absolute protection" because it allows them to provide an unvarnished

account of an employee’s departure without fear of a lawsuit.

• The Issue: Every time a broker or trader leaves a firm, the employer

must explain the departure in a form submitted to an industry database.

• The Players: Wall Street firms argue they should receive immunity from

defamation lawsuits by employees based on the form. Brokers say that

would be a license for abuse.

• Keep an Eye On: New York’s top court, which is scheduled to examine

the issue Feb. 13.