Decision on U-5 due Feb. 13th
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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.