Common Employment Disputes in the Securities Industry

Common Employment Disputes in the Securities Industry

Working in the securities industry is not easy, and when your employer has wronged you in some way, it isn’t as simple as just quitting your job and finding a new one, despite the fact that most stockbrokers are technically at-will employees. 

The impact of leaving a brokerage firm or financial planning institution can severely influence your professional life, so when you have reason to believe that your employer has wronged you in some way, it may be well-advised to consult with an attorney to see what your legal options are. 

With that in mind, below we have described some of the most common types of employment disputes within the securities industry, so you can have a better understanding of what types of cases the Financial Industry Regulatory Authority (FINRA) arbitrators hear.

Promissory Note Disputes

When a stockbroker leaves a financial planning institution or brokerage firm, any outstanding promissory notes will often need to be repaid in full, immediately. 

However, the balance on these loans may not be accurate and/or your employer may have made false promises when you were recruited which have led to your leaving the company and your inability to repay the loan. This makes promissory note disputes one of the most frequently seen types of employment disputes within the securities industry.

Wrongful Discharge

Though you more than likely worked with your firm on an at-will basis, that doesn’t actually mean your employer can get away with terminating your employment for any reason whatsoever. 

Maybe you blew the whistle on securities violations or refused to sign back-dated documents regarding  your employment with the firm. In any case, when you’ve been let go through no fault of your own out of spite by your employer, FINRA arbitration may be for you.


Whistleblowing is one of the most common ways a stockbroker can find themselves being terminated or retaliated against. Reporting securities violations and investment fraud is your obligation to your investors, but when your employer proves to be unscrupulous by ostracizing you, bringing them to arbitration could be your best option.

U5 Disputes

When a broker leaves their brokerage firm, a Form U5 must be submitted to FINRA within thirty days of their departure. This form will describe to FINRA why the stockbroker has left the securities firm. 

But when the information contained on your U5 is inaccurate or misleading, it can seriously impact your life. Heading to arbitration is an excellent way to correct any inaccuracies and hold your securities employer accountable for making your exit from the company more difficult than it needed to be. 

Get Help from a Securities Employment Dispute Lawyer

When you are struggling to deal with the fallout of an issue with your current or former employer and are unsure of where to turn or how to resolve your dispute, reach out to an experienced securities arbitration lawyer at Meissner Associates

When you are ready to schedule your confidential consultation, you can find us online and fill out our quick contact form or call our office at 212-764-3100.

About the Author:

Meissner Associates

When people have knowledge of securities fraud and inadequate corporate disclosures, they come to Meissner Associates to blow the whistle and tip off the SEC. Our firm’s founder, Stuart Meissner, helped craft the rules that reward whistleblowers, giving us in-depth, firsthand knowledge of how to protect whistleblowers and get them the best financial reward for their information.We can provide representation for a number of different whistleblowing matters:SEC whistleblowingCFTC whistleblowingFCPA whistleblowingExposing securities fraudReporting insider tradingMeissner Associates can also assist in recovering losses caused by broker mismanagement and misconduct when at least $100,000 in... View full business profile here: Meissner Associates

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