April 15, 2009
Deputy Secretary, Securities and Exchange Commission 100 F Street, NE Washington, DC 20549
I am a financial advisor dealing with securities and other financial products. My livelyhood that provides for my family is largely based on the reputation I build by my knowledge and actions for clients. I am writing to emphatically express the concerns I have regarding FINRA's proposal to revise Forms U4 and U5. My specific concern is with that part of the proposal that would revise Forms U4 and U5 to require the reporting of allegations of sales practice violations made against a registered person that are contained in the body of an arbitration claim or lawsuit even if the person is not a party to the lawsuit or arbitration proceeding.
This "guilty before charged" standard which could result in my reputation and livelihood being irreparably damaged is extremely aggregous. Anyone can make unsubstantiated claims in a proceeding. If I have not been named as a defendant or respondent I have no way to refute the claims and clear my name.
I therefore request that you not approve that part of FINRA's proposal that would require the reporting of allegations of sales practice violations made against a registered person that are contained in the body of an arbitration claim or lawsuit in which that person is not named as a party. Thank you for considering my comments.
Gary R Young