finra expungement

December 7 Deadline to Comment on New Expungement Proposal

With only 4% of customer complaints being expunged, FINRA is bowing to pressure, presumably from the customer attorneys’ bar, to again make it more difficult to remove false claims from a broker’s public record.

FINRA’s recent proposed amendment seeks to make expungement an even more extraordinary remedy by preventing anyone found liable in a customer complaint case from even seeking it. The proposal would also require that customers who have submitted complaints or other professionals be invited to any hearing on expungement proposals; and it would prohibit the arbitration panels charged with granting or rejecting expungement requests from giving any “evidentiary weight” to a customer’s failure to appear at a hearing.

Looking to expunge a disclosure from BrokerCheck? Read our article Expungement of Customer Complaints

The Securities Lawyer