As a financial advisor, you are well aware of the many challenges facing this industry. Unfortunately, even securities professionals who act in good faith and put the interests of their clients first can find themselves slapped with an unfair or baseless complaint that jeopardizes their professional standing and reputation. The Financial Industry Regulatory Authority (FINRA) defines itself as “a not-for-profit, self-regulatory organization with an 85-year history [that] pursues its mission of promoting investor protection and ensuring market integrity in many ways.” To that end, FINRA allows customers to make complaints about member firms or individual financial advisors. Unfortunately, FINRA does not investigate the validity of these allegations before allowing the information to appear in the Central Registration Depository (CRD) or on the securities professional’s BrokerCheck profile—which is publicly available and searchable. If a financial advisor wants this information removed, they must move through the FINRA customer complaints expungement process, which can be overwhelming and intimidating for those unfamiliar with its rules and procedures.
If you are struggling with an unfair or inaccurate customer complaint on your BrokerCheck record, Judex Law, LLC, is prepared to help you navigate the FINRA expungement process. Founding attorney Tosh Grebenik has personally handled a high volume of FINRA cases, so you can expect to receive the top-notch legal advocacy you deserve. Even if you are not actively facing a customer complaint, it’s helpful to recognize some of the strategies you can use to reduce the likelihood of customer dispute information snowballing into tense FINRA battles or costly litigation. No matter what your specific situation and goals may be, you can trust that working alongside a dedicated securities law attorney will give you the confidence and clarity to move forward.
Make Sure You Know About the Clients You Take On
Organizations like FINRA and other consumer protection agencies are vocal about customers vetting financial institutions and securities professionals before engaging their services. However, it’s equally important for financial advisors to understand the clients they take on, as they will be acting according to their client’s best interests. Before you move forward with a new client, take some time to gather important information from them through interviews, questionnaires, records, and documents (i.e., tax returns, bank statements, etc.). Any oversights or inaccuracies may lead to incorrect or insufficient financial guidance, which can trigger larger disputes down the road. If you sense that a client is embarrassed about their finances or is otherwise withholding key information, it can help to remind them that you and your firm will keep this information confidential. Financial advisors can also look into whether a specific client has a history of taking legal action against other parties; if a potential client has a litigious past, it may not be worth the risk of taking them on as a client.
Commit to Clear and Transparent Communication
Disputes often arise because of a lack of clear communication between the financial advisor and the client. As a financial advisor, it’s easy to lose sight of your client’s unfamiliarity with industry standards and specialized terms. Whenever possible, remember to spell out any communications in layperson’s terms. Sometimes, clients who hear the term “high risk” may not understand what this means in practical terms, which can cause ambiguity and lead to disputes in the future. Moreover, even if you believe that a client should make a specific move or investment because you believe it’s in their best interest, be sure to avoid putting any pressure on the client to do so. Clients may misinterpret your recommendations and accuse you of exerting pressure on them or otherwise misleading them, even if you know you were looking out for their best interests.
Maintain Client Confidentiality and Keep Their Information Secure
Failing to keep sensitive client information safe from cyber attacks or security breaches can lead to intense legal battles. Unfortunately, financial institutions are common targets for hackers because they store confidential information that’s highly valuable. As a financial professional, it’s your responsibility to check the security of all the third-party vendors you work with and reassure your clients that your firm is committed to protecting sensitive information and confidential data.
How to File a FINRA Expungement Request
Even if you have been vigilant and proactive in your efforts to serve the best interests of your clients, you may find yourself the target of a baseless or downright false customer complaint. Suddenly, your professional reputation may be endangered, and you will likely wonder how you can have this unfavorable information removed from BrokerCheck. Unfortunately, FINRA has recently enacted revised rules that make removing customer dispute information from BrokerCheck more difficult for financial advisors. While seeking a FINRA expungement request may be challenging or even daunting, Judex Law, LLC, has a deep understanding of the expungement request process. We’re ready to work hard to defend your professional reputation and advocate vocally on your behalf at every opportunity.
Navigating the FINRA Expungement Process
When you file an expungement request, FINRA’s Dispute Resolution Services (DRS) will oversee this matter. Essentially, you and your securities law attorney will appear before a panel of three independent, specially trained arbitrators who will evaluate the details of the case and determine whether to award expungement relief. The party must unanimously agree to award expungement relief. If they rule in your favor, you must have this award confirmed by the court and presented to FINRA in order for the customer dispute information to be expunged and removed from the CRD and BrokerCheck. In light of FINRA’s recently amended rules governing the process of expunging customer dispute information, it’s highly recommended that you work with an experienced securities law attorney to maximize your chances of obtaining a fair and favorable outcome.
At Judex Law, LLC, we can help you successfully resolve any number of compliance or regulatory issues, protecting your best interests every step of the way. Give us a call today at (303) 523-4022 to get started with an experienced and friendly securities law attorney.
