Financial Licenses, Judgment Debts, and Reporting on Form U4

Financial Licenses, Judgment Debts, and Reporting on Form U4

Debt removal can be much harder for those who have financial licenses, such as:
  1. Broker-Dealer Registered Representatives
  2. Investment Adviser Representatives (IARs)
  3. Principals managing or supervising securities activities
  4. Securities Principals/FinOps
This is because a Form U4 will need to be filed should a judgment occur during any disputation of debts. Updating Form U4 poses a risk to an individual's license if it triggers a disclosure (and there is fraud) due to its disclosure in a permanent, public, and heavily scrutinized record regarding one's history, which FINRA and state regulators use to initiate investigations. Form U4 must be updated once again within 30 days of a judgment being nullified, vacated, or satisfied. While the original judgment remains on record, the update ensures the Disclosure Reporting Page (DRP) reflects the final status.

NOTE: Should one file as an indigent due to lawful money redemption, yet their prior U4s show reportable income - this will be seen as a blatant discrepency and thus an investigation will occur once reviewed by an agent.