When information about customer disputes, terminations, or other forms of disclosures appear on a broker’s Central Registration Depository (CRD) record and BrokerCheck profile, a financial industry professional may suffer significant damage to their reputation. Although the Financial Industry Regulatory Authority (FINRA) claims that the public has a right to know about these disclosures, even inaccurate or false information can appear on your record. If you’ve been subjected to an unfair disclosure, you can pursue an expungement through FINRA’s arbitration process. Here’s what you can expect from this process.
An Unfair System for Brokers
While legitimate customer disputes exist, even baseless allegations can become part of the public record under the current guidelines. FINRA errs on the side of the customer, meaning that inaccurate claims and frivolous customer disputes can show up on BrokerCheck and become part of the CRD. As a result, brokers affected by these disclosures may suffer professionally, as virtually no context or details about the dispute accompany the customer dispute information. Instead, viewers simply see that the broker has claims or disputes against them, often prompting the public to assume the worst.
Requesting an Expungement
Brokers affected by customer dispute information may file a Statement of Claim with FINRA and request the expungement of one or more customer disputes. From there, FINRA will respond and hold an in-person or virtual hearing, during which one or more arbitrators assess whether the disclosure in question is based on erroneous, false, or factually impossible information. If so, the arbitrator(s) will grant the expungement, including an explanation for their decision.
How a Securities Law Attorney Can Help
While successfully obtaining an expungement request is not impossible, FINRA remains quite strict in honoring such requests. The process can be overwhelming for financial advisors to navigate on their own, which is why enlisting the assistance of a trusted securities law attorney is the best way to make the strongest case possible for yourself. Additionally, FINRA is currently pursuing amendments to its Code of Arbitration Procedure that will make the expungement request process even more challenging, so it’s essential that you take action as soon as possible to increase your chances of obtaining a successful outcome.
If you need help navigating the expungement request process, contact Judex Law LLC today at (303) 523-4022 to discuss your goals with an experienced securities law attorney.