A story “Some Brokers Can’t Flee Past” on page C1 of the
Unlike the conventional employment market where employers are reluctant to say anything substantial on reference requests, securities employers use the U5 form to determine if the professional has been involved in misconduct. There are substantial legal impediments to challenging a false U5 form, which apparently resides in a doctrine called “absolute privilege.” It is much more difficult to correct than an erroneous credit report. Therefore, a U5 report could blackball a person from working in the industry.
I once started the interview process to become a life insurance agent (in 2005) and I may have seen questions about this form on the application form.