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Home>Levelset Community>Legal Help>My wife works in financial services ad is subject to FINRA compliance, which includes informing employer of liens. We had a mechanics lien filed against our home years ago (10 years) and while we n sign of it we'd like to know a) it was withdrawn b) whether mechanics liens are subject to FINRA compliance

My wife works in financial services ad is subject to FINRA compliance, which includes informing employer of liens. We had a mechanics lien filed against our home years ago (10 years) and while we n sign of it we'd like to know a) it was withdrawn b) whether mechanics liens are subject to FINRA compliance

ConnecticutLien Releases

My wife works in financial services ad is subject to FINRA compliance, which includes informing employer of liens. We had a mechanics lien filed against our home years ago (10 years) and while we n sign of it we'd like to know a) it was withdrawn b) whether mechanics liens are subject to FINRA compliance

1 reply

Feb 4, 2019
That's a complex question. Presumably this is the first time she's filling out a Form U4, since the lien was filed 10 years ago and the question of whether or not is was subject to reporting is now coming up. If that is not the case, and the lien was previously unreported, the question would become whether or not a subsequent late disclosure is mandated (which can be subject to fines).

The question of whether mechanics liens need to be disclosed at all is thorny. Since a mechanics lien is a lien against the improved property itself there is an argument to be made that a mechanics lien is not a "lien against you" that would require disclosure. However, that particular technicality may not need to be address.

Question 14M of the U4 requests disclosure of any unsatisfied judgments or liens. Since the lien was filed 10 years ago, it's unlikely that litigation regarding the enforcement of the lien is currently ongoing, particularly since you mentioned the lien was withdrawn. If the lien was released 10 years ago, it is not an unsatisfied lien. FINRA interpretive guidelines make specifically clear that "Only unsatisfied judgments or liens are reportable in response to Question 14M."

Note, however, that public records checks can turn up liens filed against an owner's property. To the extent the lien was not released/cancelled/discharged it may come up in a background check as an unsatisfied lien even though the time for enforcement is long since passed.
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