Duplicate Disclosure Interpretive Guidance - FAQ
Q. What is a duplicate disclosure and how is a duplicate disclosure created?
A. A "Duplicate Disclosure" is when a firm files a Form U4, Form U5 or Form BD to report the same disclosure event multiple times via separate (i.e., new or "initial") Disclosure Reporting Pages (DRPs). Rather than amending the existing DRP to report any updated details, a firm creates and files a new ("initial") DRP when the same DRP source and event type already exists for a specific disclosure event. Submitting two new/initial DRPs forces the creation of two separate disclosure occurrences in cases where there is only a single disclosure event to report.
Duplicate Disclosures are most commonly created under the following circumstances:
- Firm A reports a pending regulatory action for John Doe via a U4 Regulatory Action DRP by reporting the relevant details on an "Initial" DRP. John Doe transfers his employment and registrations from Firm A to Firm B. Rather than resubmitting the previously filed Regulatory Action DRP when Firm B files John Doe's Form U4 with CRD, Firm B submits the previously filed Regulatory Action DRP AND creates a new (i.e., "initial") Regulatory Action DRP to report the same details as previously reported by Firm A.
- Firm A reports a pending customer complaint for John Doe via a U4 Customer Complaint/Arbitration/Civil Litigation DRP by filing the relevant details on an "initial" DRP. The customer complaint evolves into an arbitration proceeding. Rather than identifying the previously filed DRP and "editing"/"amending" the Customer Complaint/Arbitration/Civil Litigation DRP to report the updated details regarding the evolution of the customer complaint, Firm A files the updated details on a new/"initial" Customer Complaint/Arbitration/Civil Litigation DRP.
Q. How can I avoid creating a duplicate disclosure?
A. If a current employing firm needs to provide updated details of a disclosure event that has already been reported on a Form U4 DRP, the filing firm should edit (i.e., "amend") the existing U4 DRP with the updated details, rather than create a new DRP to report the additional information. Likewise, if a previous employing firm reported a disclosure event via Form U5, the firm should edit (i.e., "amend") its existing U5 DRP with the updated details, rather than create a new U5 DRP to report the additional information.
Q. I need to amend an existing DRP; however, the disclosure occurrence that contains the DRP is no longer reportable (i.e., no longer appears as a "current" disclosure). How can I amend an “archived” disclosure occurrence?
A. Disclosure occurrences that are no longer reportable via Form U4 and/or Form U5 are labelled as Regulatory Archive and Z Records in an individual’s profile. Filers can amend archived Customer Complaint DRPs; however, if other archived disclosure updates are required, contact the Gateway Call Center at (301) 869-6699 to request assistance. In the event the disclosure occurrence remains non-reportable after the amendment reporting the updated information is filed, the disclosure occurrence to will be rearchived. If, however, the updated details demonstrate that the disclosure event is reportable on the Form U4 and/or Form U5, the disclosure occurrence will remain in the "current" disclosures section of the individual's CRD record.