Essentials of Forms U4 and U5, Expungements, and Regulation Best Interest

Essentials of Forms U4 and U5, Expungements, and Regulation Best Interest

Event Date(s): 07/17/2019

Christina Hill and Katherine McGrail were the featured speakers at the July 17 Greater Richmond Compliance Roundtable covering the topic, “Essentials of Forms U4 and U5, Expungements, and Regulation Best Interest.” The event was held at Murphy & McGonigle’s Richmond Office. 

The attendees of the Roundtable consisted of compliance professionals of small and mid-sized registered investment advisors and broker-dealers. 

“The amount of interest in these topics was significant,” said Ms. McGrail. “The audience was highly engaged throughout the presentation,” said Ms. Hill.

Compliance professionals are responsible for maintaining Forms U4 and U5 and disclosing certain events on the records of registered representatives.  Expungement is a mechanism for removing meritless or inaccurate information from registered representatives’ industry records.  

“Knowing how to navigate Forms U4 and U5 disclosures and the expungement process is crucial to ensuring the protection of the reputation of the firms and their registered representatives,” said Ms. McGrail. “By virtue of the extensive experience Murphy & McGonigle has in this area, we are able to keep compliance professionals apprised of best practices and proper compliance.”

Likewise, it is crucial for compliance professionals to consider the implication of the SEC’s recent adoption of Regulation Best Interest, which calls for disclosure of conflicts of interest and imposes a new standard of conduct on broker-dealers.  Ms. Hill said, “Murphy & McGonigle, with 16 former SEC attorneys, is well positioned to predict how Reg BI will be understood and enforced by regulators, and we were pleased to have the opportunity to share our perspectives with industry professionals.”

Ms. Hill is based in Washington, D.C., and Ms. McGrail practices in the firm’s Richmond, VA office.