Professionals throughout the financial industry are well aware of the substantial number of amendments and rule changes that have been approved and implemented by the Financial Industry Regulatory Authority (FINRA) within the last few years. Many of these changes affect FINRA’s Dispute Resolution Services (DRS), which “helps investors and firms resolve securities-related disputes through arbitration and mediation.” The Securities and Exchange Commission (SEC) recently approved a number of FINRA’s proposed rule changes to the expungement request process in an effort to protect the public interest. Under these newly adopted rules, financial advisors who are hoping to have customer dispute information removed from their publicly available BrokerCheck profile will likely face stricter timelines and other challenges that make it more difficult to obtain expungement relief. Since FINRA’s primary mission is to protect the public from member firms or individual advisors acting in bad faith, any customer complaints, regardless of merit or veracity, can appear on BrokerCheck. In other words, FINRA does not investigate the nature of the claims before entering the information into the Central Registration Depository (CRD) and BrokerCheck, which means that a financial advisor can find themselves suffering reputational harm from a baseless or downright false customer complaint.
If you are ready to explore your options for having an unfair customer complaint or dispute information removed from BrokerCheck, consider enlisting the guidance of a highly experienced and trusted securities law attorney. Together, you can assess the specific details of your situation and determine the most strategic path forward. Let’s take a look at some of the most recently enacted rule changes to FINRA’s Code of Arbitration Procedure and what you can expect when filing an expungement request with FINRA.
Rule Changes Affecting the List of Special Arbitrators
One of the most significant changes that the SEC approved was the establishment of a Special Arbitrator Roster. A panel of three arbitrators, randomly selected from the Special Arbitrator Roster, are tasked with overseeing expungement requests. In order to grant expungement relief, the panel must unanimously agree that granting relief is warranted. While these changes took effect in 2023, there have been more recent changes that affect these policies and procedures that are worth understanding.
Changes to the Arbitrator List Selection Process
n August 2025, the SEC approved FINRA’s proposed rule change to amend the Codes of Arbitration Procedure to alter the terms of certain matters pertaining to the arbitrator list selection process. According to FINRA, “the proposed rule change would make changes to the Codes that are consistent with FINRA’s focus on increasing the transparency of arbitrator list selection and with current practices that were developed to efficiently administer arbitrator list selection.” Under these new rules, there will be more opportunities for non-chair-qualified public arbitrators to appear on lists for three arbitrator panels, which could affect the experience level of the panel of arbitrators assigned to your expungement case.
Changes to the Voluntary Short List Option for Replacement Arbitrators
In July 2025, FINRA’s DRS expanded the Short List Option so that parties involved in arbitration proceedings could provide a “short list” of possible arbitrators in the event that a replacement arbitrator was needed (instead of accepting another arbitrator from an extended list). FINRA will prescreen the short list of arbitrators to ensure that they are available for the scheduled hearing dates. To learn more about how these amendments could affect your FINRA arbitration case, reach out to a highly qualified and knowledgeable securities law attorney today to get started.
Initiating a FINRA Complaint Expungement Request
If you are ready to initiate an expungement request to have customer dispute information removed from the CRD and BrokerCheck, it’s highly recommended that you enlist the guidance of an experienced securities law attorney who can support you at every step of the upcoming process. Your skilled lawyer can make sure that you comply with all of the requirements before you initiate expungement request proceedings. If you meet these requirements, your attorney can help you complete the required forms, file the request with FINRA’s arbitration forum within the given timeframe, pay the required fees, and prepare for the upcoming hearing. For instance, you can work to compile evidence (i.e., account statements, records, and other documents) to support your position. Your attorney will also help you prepare your testimony to push back against the baseless allegations and provide the factual account of what transpired. When it comes to attending the hearing, you may be able to appear in person or virtually, depending on the circumstances of this case. At the end of the hearing, the panel of arbitrators will decide whether to grant expungement relief. Should expungement relief be granted, you can have this award confirmed by the court and presented to FINRA, and the information will be removed from the CRD and BrokerCheck. It’s important to recognize that you still have options for seeking expungement relief if the panel does not grant you relief the first time.
Preparing For a FINRA Virtual Hearing
FINRA acknowledges that virtual hearings are here to stay. If your expungement relief hearing is scheduled using video conferencing, there are a few steps you can take to prepare for this event so that the process moves forward as smoothly as possible. To minimize technical difficulties during the hearing, it’s important to update your Zoom software at least a day before the hearing. Make sure that you have a reliable internet connection and a functioning camera and microphone, as well as sufficient battery power or a stable connection to power. Your highly experienced securities law attorney can work with you to prepare for the hearing, offering you helpful tips and suggestions to ensure a productive virtual hearing.
Get Started With Colorado’s Top Securities Law Attorney Today
It can be challenging to keep up with the latest developments regarding FINRA’s arbitration procedures and expungement requests. If you need help pursuing an expungement request to have erroneous customer dispute information removed from your BrokerCheck profile, reach out to Judex Law, LLC, at (303) 523-4022 to discuss your options with a highly experienced and friendly securities law attorney.