As a broker or other professional in the financial sector, you probably know that the Financial Industry Regulatory Authority (FINRA) exists to protect consumers and the public. When a customer lodges a complaint against a financial advisor, the information will appear on the searchable BrokerCheck database. Unfortunately, even exaggerated or baseless claims can appear on your BrokerCheck profile, which can negatively affect your professional reputation. If you decide to pursue an expungement request through FINRA to have this information removed, here’s what you should know about this process.
How FINRA’s Expungement Process Works
If you want to remove customer dispute information from the Central Registration Depository (CRD) system, which is available to the public via BrokerCheck, you may initiate a request for expungement with FINRA. As part of FINRA’s adjudication process exploring the original customer complaint, you may request that a panel of independent arbitrators determine whether to grant your expungement request. If the arbitration panel recommends expungement, you can move forward with obtaining an order from a court of competent jurisdiction to confirm the arbitration award and serve this confirmed award on FINRA.
FINRA Tends to Grant the Majority of Expungement Requests
While the expungement request process may seem intimidating, independent reports indicate that FINRA tends to honor most expungement requests. According to a 2021 report released by the Public Investors Arbitration Bar Association (PIABA), FINRA arbitrators grant expungement requests 90 percent of the time. This high approval rate appears to stem from the lack of participation of interested parties opposed to an expungement request. For instance, “straight-in expungement cases” grew from just 59 cases to 545 cases between 2015 to 2018. These types of cases do not involve the original customer who made the complaint. Critics of this relatively high expungement request success rate are urging FINRA to make this process fairer for consumers and the public.
Legal Guidance When You Need it Most
Dealing with unfair and inaccurate customer dispute information can be frustrating and stressful. However, it’s essential to recognize that you have options for handling these issues. Although you can navigate the FINRA expungement request process on your own, working with an experienced securities law attorney is the best way to move through the process with the clarity and confidence you need. Defend your professional reputation by enlisting the assistance of a securities law attorney today.
Call Judex Law, LLC, today at (303) 523-4022 to discuss your goals with a trusted and experienced securities law attorney.
