Pursuing an Order of Expungement of Customer Dispute Information From FINRA

As a professional in the financial services industry, you know that the Financial Industry Regulatory Authority (FINRA) investigates customer complaints and takes disciplinary action when necessary. Unfortunately, FINRA adheres to overly broad reporting guidelines, meaning that inaccurate or false complaints can severely damage your professional reputation. Under FINRA’s Rule 2080, you can seek an order of expungement to have the customer dispute information removed from the Central Registration Depository (CRD) system. Although this process can be difficult, it’s not impossible. Here are a few things you should know about obtaining an order of expungement through FINRA’s dispute resolution arbitration system.

Lasting Damage to Your Professional Reputation

Without an expungement, customer dispute information remains a permanent part of your CRD and BrokerCheck records—even if such information is wildly inaccurate or false. Accusations of fraud, negligence, breach of contract, unauthorized trading, or other inappropriate activity, if not handled properly, become part of the CRD and appear on BrokerCheck’s searchable database. What’s more, FINRA is not obligated to include specific details about the customer dispute, making it easy for the public to assume the worst. It’s essential that you explore your options for having this information expunged to keep your reputation and your future as bright as possible.

Making an Expungement Request Through FINRA

Once you decide to take action, you’ll need to make your case to FINRA through their dispute resolution arbitration system. The arbitrator (or panel of arbitrators) will determine whether any of the following are true:

  • The claim is factually impossible;
  • The claim is clearly erroneous;
  • The claim is false; or
  • The individual in question had no involvement in the alleged activity.

Should the panel find evidence of any of the above, they may issue an order of expungement to remove the customer dispute information.

How a Securities Law Attorney Can Help

Making a FINRA expungement request can be time-consuming and difficult, especially if this is your first time navigating the process. Enlisting the guidance of a knowledgeable securities law attorney is your best bet in building a solid case and obtaining your desired outcome. Don’t let a false customer complaint negatively affect your career and your reputation—discuss your options with an experienced attorney as soon as possible to keep your future bright.


Call Judex Law LLC today at (303) 523-4022 to get started with a trusted and experienced securities law attorney.

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