Question

Does the ex-employer of an employees termination have an ongoing obligation to update the U5 for subsequently discovered information after the employee is terminated?

Answer 1

Ex-employers in the securities industry may need to update the Form U5 if new material information comes to light, although other sectors might not have such obligations unless mandated by specific laws or regulations.

Step-by-step explanation:

The question pertains to whether an ex-employer has an ongoing obligation to update the Form U5 with information that is subsequently discovered after an employee's termination. The Form U5, used in the securities industry, is integral in the regulatory aspect of an individual's employment history. In the context of the securities industry, there are indeed circumstances where a firm might be obligated to update a Form U5 for material changes. However, this could vary based on specific regulatory rules or if new, material information comes to light that impacts the accuracy of the previously filed U5. Employers in other sectors are generally not obligated to retroactively update termination records unless statutory or legal provisions, such as those following an OSHA inspection or within the confines of anti-discrimination laws, specifically require it.