What’s in your wallet? The Man From FCPA thought about that ubiquitous bank card commercial when reading a recent article in the New York Times that Wells Fargo is now under scrutiny for its termination of certain whistleblower employees in their ongoing fraud scandal. It turns out that federal regulations require that anytime a “broker or certain other registered representatives leave a bank—voluntarily or otherwise—the company is required to file a notice with the Financial Industry Regulatory Authority” (FINRA). The form is a U5 and it “includes a field where the bank must disclose any allegations that played a role in the employee’s departure.” In the financial services industry, a negative mark by an employer on this form can blackball a person’s entire career.
