As a financial advisor, your professional reputation is everything. Unfortunately, even one unfair customer dispute can appear on your BrokerCheck report, complicating your prospects of growing your business or qualifying for another position in the financial services industry. While the Financial Industry Regulatory Authority (FINRA) believes in making customer dispute information accessible to the public, many financial advisors find themselves subjected to inaccurate or baseless disclosures. Here are the answers to common questions financial advisors have about having unfair disclosures expunged from the CRD and BrokerCheck.
What Shows Up on the CRD and BrokerCheck?
FINRA operates the Central Registration Depository (CRD), updating it regularly to display disclosure and administrative information about registered securities firms and financial advisors. Essentially, CRD information serves as a background check for brokers, allowing searchers to view any customer complaints filed against them as well as enforcement actions, licensing information, and professional certifications. Since the public generally cannot access the CRD directly, FINRA created BrokerCheck as an online tool for anyone to view some of the information available on the CRD. For instance, a member of the public can use BrokerCheck to see if a financial advisor has disclosures regarding customer complaints or disputes. However, the details of these disclosures are minimal at best.
Can Customer Disputes and Complaints be Expunged?
FINRA does grant expungement requests from time to time, but it maintains that expungements should only be used as an extraordinary remedy. According to FINRA Rule 2080, disclosures related to customer disputes or complaints may qualify for expungement if the following criteria are met:
- The claim, allegation, or information is factually impossible or clearly erroneous;
- The registered person was not involved in the alleged investment-related sales practice violation, forgery, theft, misappropriation, or conversion of funds; or
- The claim, allegation, or information is false.
If you believe that you meet one of the above criteria, contact a securities law attorney to discuss how you can move forward with an expungement request.
Do I Need an Attorney to Seek an Expungement?
While you’re not required to work with an attorney to pursue an expungement request, doing so carries several advantages. The process can be stressful and challenging to navigate, so enlisting the support of a knowledgeable securities law attorney can give you the clarity and confidence you need to move forward. Give yourself the best chance of making a successful expungement request by hiring an attorney who will work hard to obtain your desired outcome.
Call Judex Law, LLC, today at (303) 523-4022 to discuss your goals with a trusted securities law attorney.
