Securities Employment & Industry Disputes

When conflicts in the workplace arise, both employee and employer benefit from seeking counsel. Employees in the securities industry are incentivized by promissory notes and large annual bonuses, which often lead to almost involuntary long terms of employment that can be ripe for conflict. Those conflicts are usually resolved in FINRA arbitrations. As the arms-length, at-will employment environment between securities employers and employees seems to increasingly widen, there are more disputes related to wrongful termination, unpaid compensation and Form disclosure U4/ U5 cases.

As FINRA is funded mainly by Wall Street, the odds can be stacked in favor of the brokerage firms. Therefore, experienced securities employment and industry dispute attorneys are necessary to secure positive outcomes for clients. With an excellent rapport and insights into regulatory (SEC) and self-regulatory (FINRA) bodies, our attorneys have a reputation for favorably negotiating settlements for industry professionals in cooperation with these regulatory bodies.

We help professionals transition within the workforce, which often requires skilled planning. We also help them obtain the various types of agreements, compensation, deferred compensation, stock, and options to which they are entitled. Furthermore, some professionals should be protected and indemnified by their employers, when subjected to investigations and litigation relating to their employment or former employment. Employees and executives must not agree to inappropriate non-competition or confidentiality provisions that could restrict future employment or prove a springboard for future litigation, and ensure that their employment and any issues relating thereto are properly documented in publicly available filings. Our New York securities employment and industry dispute attorneys are skilled at helping industry professionals transition, negotiate settlements and contracts, and seek indemnity.

We help clients with Form U4/ U5 disclosure issues, promissory notes, non-compete agreements, and other negotiations brokers have when exiting a firm, including industry professionals who are investigated by regulatory, self-regulatory and state examiners. From compensation and termination disputes to restrictive covenants and severance negotiations, we have your back.


We represent financial industry professionals, brokers, traders, analysts, corporate executives, advisors, specialists, floor brokers, structured finance professionals, quants, company founders, partners in hedge funds, LLCs and other partnerships and corporate forms. Click here for a list of industry professionals we represent.

The most frequently filed FINRA claims by employees are compensation denial, wrongful termination, breach of contract and statutory defamation. We offer counsel to clients on a wide array of employment issues, both to avoid litigation, and to institute or defend actions when necessary. Such matters of negotiation or dispute include:

  • U4/U5 and RIA Reporting and Expungement
  • Negotiation of High Level Executive Compensation Packages, Non-Competition/Non-Compete and Non-Solicitation Agreements
  • Restrictive Covenants including stock options and grants, signing bonuses, guarantees, compensation formulas for “good cause”, termination provisions, and other unique issues
  • Promissory Note Arbitration and Litigation Defense (“sign-on bonuses”)
  • Severance Package Termination Agreements
  • Compensation, Bonus and Commission Disputes
  • Disclosing Outside Business Activity
  • “The Protocol” in transitions between brokerage firms
  • Indemnification and representation in trailing litigation and arbitration
  • Discrimination and/or Harassment (Gender, Age, Race, Religion, Sexual Orientation)
  • Employment Contract Negotiation and Drafting
  • Drafting and Negotiation of Employment Policies
U4/U5 and RIA Reporting and Expungement

Public filings must be made by broker-dealers, investment advisors and issuers of securities to report employment, litigation and arbitration events and other information. These filings are frequently revised to incorporate changes in status and other reportable matters like customer complaints and arbitrations as well as regulatory matters. Malecki Law's New York Form U5 and securities employment lawyers have the knowledge needed to ensure that these filings are accurate and bring arbitrations for industry professionals to expunge improper filings. FINRA has special expungement procedures in its arbitration forum.

For more information:

FINRA Notice to Members 04-16 (April, 2004): Regarding Expungement of Customer Dispute Information from the Central Registration Depository

FINRA Broker Check: “A free tool to help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers.”

SEC Investment Adviser Public Disclosure: information about current representatives and firms registered with the SEC.
Significant Securities Industry Employment Cases
  • Secured a $2 Million settlement in municipal securities industry compensation and sexual harassment claim in Federal Court Southern District New York

  • Secured $500,000 in settlement for a Sarbanes Oxley Analyst Whistleblower Employee

  • Complete expungement  for a broker against a major investment bank, including the amount of attorney fees in FINRA arbitration

  • Represented Series 7 broker in FINRA arbitration and Form U5 issues relating to conduct by his partner, outside the scope of employment, where he was improperly named, i.e., the wrong broker was sued

  • Investment banker and several board of directors working abroad in suit against major international wirehouse for unjust enrichment, breach of contract, false statements on Form U5  and failure to reimburse expenses in FINRA arbitration

  • Compliance director against brokerage firm relating to employment and whistleblowing dispute

  • Investment banker in structured and corporate finance agreement

  • Major US brokerage firm for dispute over corporate referral compensation and bonuses

  • Two groups of brokers in FINRA arbitrations over allegations of fraud against UBS PR for the firm's failure to disclose the true nature of PR Closed Ended Bond Funds and related issues for compensatory damages and Form U5 expungement  in FINRA arbitration

  • Independent platform registered representative against independent platform brokerage firm for mismarking his Form U5  and theft of client base in FINRA arbitration

  • Series 24 supervisor against major wire house for disability discrimination  and other related claims in a FINRA arbitration

Attorney Advertisement. Prior results do not guarantee a similar outcome.