Registered Persons Representation – Bakhtiari & Harrison
Representation for financial professionals at every career stage
Financial professionals face a distinct set of legal challenges that general employment attorneys and even most securities lawyers are not equipped to handle. The regulatory framework governing registered representatives and investment advisers — FINRA rules, SEC regulations, state securities laws, and the specific contractual structures common to the industry — requires counsel with genuine inside experience. David Harrison brings that experience: a career that began on the trading floor, continued through prosecution and major broker-dealer in-house practice, and now focuses on protecting financial professionals against the industry’s most common legal threats.
Practice areas for registered persons
FINRA expungement
Bakhtiari & Harrison represents financial professionals in FINRA expungement proceedings — the formal process for removing meritless customer dispute disclosures from the CRD record. Ryan Bakhtiari served as Chairman of the FINRA NAMC, which wrote the current expungement rules including the 2023 amendments. David Harrison has won significant expungement proceedings including against Merrill Lynch Pierce Fenner & Smith. Brokers have only one opportunity to seek expungement for a specific complaint — experienced counsel is essential.
Compensation disputes and promissory note defense
The firm represents financial professionals in compensation disputes involving withheld bonuses, incentive compensation, deferred compensation, and production credits, and in promissory note defense — defending against broker-dealer claims for repayment of upfront loans when a registered representative transitions to a new firm or is terminated. David Harrison’s background as Morgan Stanley in-house counsel gives him direct knowledge of how firms structure and pursue these claims.
Employment disputes
The firm handles employment disputes involving wrongful termination, discrimination, harassment, retaliation, and breach of employment contract for financial professionals. Employment disputes in the securities industry frequently intersect with regulatory matters and CRD disclosures — requiring counsel who understands both employment law and the specific regulatory consequences of U4 and U5 termination language.
Outside business activity matters
FINRA Rule 3270 governs outside business activities of registered persons. The firm represents financial professionals in outside business activity matters — including regulatory inquiries, firm approvals, and disputes arising from OBA disclosures.
Regulatory defense
The firm represents registered persons in regulatory investigations by FINRA, the SEC, and state securities regulators. David Harrison’s background as a former prosecutor gives him a direct understanding of how regulatory investigations are conducted and how to navigate them effectively.
Transition services
The firm provides legal guidance to financial professionals navigating firm transitions — including Protocol for Broker Recruiting compliance, client solicitation issues, promissory note exposure analysis, and regulatory filing requirements when moving from one broker-dealer to another.
Defamation and false U5 filings
False or misleading disclosures on a U5 termination notice can permanently damage a financial professional’s career and reputation. The firm handles U5 defamation claims — both in FINRA expungement proceedings and in court — when a broker-dealer has filed a U5 with false or misleading termination disclosures.
Whistleblower claims
The firm represents financial professionals in whistleblower matters — including SEC and FINRA whistleblower program submissions, anti-retaliation protections, and whistleblower award claims.
Why this firm is different for financial professionals
Most securities law firms represent primarily investors. Bakhtiari & Harrison represents both investors and financial professionals — and the firm’s specific credentials are uniquely relevant to the financial professional audience in ways that go beyond general securities experience.
Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee (NAMC) — the advisory body that makes the rules and procedures for FINRA arbitration under both the customer and industry codes. He also serves as a FINRA arbitrator. This means that when a broker-dealer brings a promissory note or compensation dispute against you in FINRA arbitration, your attorney has direct, institutional knowledge of how those proceedings are conducted, how arbitrators are selected, and what arbitrators look for in these cases.
David Harrison began his career as a Series 7-licensed registered representative at Shearson Lehman Brothers — understanding the securities industry from the inside. He then spent years as in-house counsel at Morgan Stanley Dean Witter, where he dealt with the full range of financial professional legal issues: employment contracts, promissory notes, customer complaints, U4 and U5 filings, and regulatory investigations. He now uses that inside knowledge exclusively on behalf of financial professionals facing these same challenges. His background as a former New York City assistant district attorney also gives him a direct understanding of regulatory investigations and how to navigate them.
Frequently asked questions — registered persons
What is a promissory note claim and how does the firm defend against it?
When a financial professional joins a new broker-dealer, the firm typically provides an upfront loan — often called a forgivable loan or transition package — that is forgiven over time if the adviser stays with the firm. If the adviser leaves before the note is fully forgiven, the firm demands repayment of the outstanding balance. Bakhtiari & Harrison defends against these claims by challenging the underlying employment terms, asserting counterclaims for withheld compensation, and negotiating settlements that reflect the adviser’s actual compensation situation. David Harrison’s Morgan Stanley background gives the firm direct knowledge of how these claims are structured and pursued.
Can I seek expungement if I have already settled the underlying customer complaint?
Yes — settlement of the underlying complaint does not bar expungement. However, the 2023 FINRA rule changes impose a three-year filing deadline from the close of the underlying proceeding. Financial professionals should consult counsel promptly after a settlement to preserve their expungement options.
What should I do if my former firm filed a false U5?
Preserve all documentation related to your termination — including any written communications about the reasons for the termination and the U5 language. Do not contact the firm directly about the U5 language without legal counsel. Contact Bakhtiari & Harrison for a free consultation — U5 defamation claims have specific procedural requirements and deadlines that need to be addressed promptly.
Does the firm represent financial professionals outside California?
Yes. Bakhtiari & Harrison represents financial professionals nationwide. Ryan Bakhtiari is admitted in California, New York, Texas, the District of Columbia, and multiple federal courts. David Harrison is admitted in California and New York. FINRA proceedings are held at locations across the country.
Contact a financial professional attorney — free consultation
Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys review every potential case at no charge.
Financial professional cases are handled on a flat fee or hourly basis. Initial consultations are free.
Call: (800) 382-7969 | Contact Us