As a professional in the financial industry, your reputation is everything. Unfortunately, any customer can lodge a complaint against you at any time, regardless of whether it is factually accurate. The Financial Industry Regulatory Authority (FINRA) takes its role as the primary protector of investors and the promoter of market integrity very seriously, which means that it allows customer dispute information to appear on a broker’s profile in both the Central Registration Depository (CRD) and the publicly available (and searchable) BrokerCheck tool. It’s essential to understand that the disclosures that appear on an individual advisor’s BrokerCheck profile may not have been investigated or proven yet, but the nature of the allegations themselves can wreak havoc on the advisor’s professional reputation. According to BrokerCheck, the disclosure section “includes information about customer disputes, disciplinary events and certain criminal and financial matters on the individual’s record. Some of these items may involve pending actions or allegations that have not been resolved or proven.” Understandably, having baseless or erroneous customer dispute information on your BrokerCheck profile can be extremely upsetting and even jeopardize your career and livelihood.
If you are struggling with an unfair allegation or a devastating customer complaint, you may be able to file an expungement request with FINRA to have the customer dispute information removed from the CRD and BrokerCheck. As you prepare for the upcoming FINRA arbitration hearing, it’s worth enlisting the guidance of a highly qualified and experienced securities law attorney who is ready to support you through every step of the expungement process. This post will provide a step by step guide to the FINRA expungement request process so that you can move forward with greater confidence and clarity.
Who Benefits From a FINRA Expungement?
There are many reasons why financial advisors may file an expungement request with FINRA. Having a publicly available stain on your FINRA record can create several problems and jeopardize your career in the securities industry. For instance, having a questionable or concerning BrokerCheck record can damage your professional reputation and cause your clients and your colleagues to lose confidence and trust in you. Moreover, your professional opportunities for career advancement can be significantly impeded by a checkered record, as employers in the securities industry prefer candidates with clean and upstanding records. In some cases, your clients may decide to take their business elsewhere when they learn that you have marks on your record that could indicate that you are not worthy of their trust. Generally speaking, any financial advisor who is concerned about the impact of customer dispute information or unfair allegations can consider filing a FINRA expungement request to have this damaging information removed from the CRD and their Brokercheck profile.
Steps Involved in Requesting a FINRA Expungement
Once you decide to file an expungement request, it’s natural to feel somewhat intimidated by the steps ahead of you. With a highly qualified and dedicated FINRA expungement lawyer by your side, you can break down the process into manageable steps so that you can move forward with greater understanding, poise, and confidence. Here are the key steps you can expect to navigate as you move through the FINRA expungement process.
Filing a Request For Expungement
The first step you will need to take to get the process started is to submit a written request to FINRA explaining why you are seeking (and why you deserve) an expungement. It’s essential to recognize that FINRA’s Dispute Resolution Services (DRS) and the panel of independent arbitrators reviewing your request will only grant expungement relief if one of the following grounds is met: “(1) The claim, allegation or information is factually impossible or clearly erroneous; (2) The associated person was not involved in the alleged investment-related sales practices violation, forgery, theft, misappropriation or conversion of funds; or (3) The claim, allegation or information is false.” You can work with your securities law attorney to ensure that you can provide clear and compelling evidence in support of one of these qualifying grounds.
Preparing For and Attending the Arbitration Hearing
Next, the expungement request will proceed to an arbitration hearing, where “A panel of three arbitrators will be randomly selected from the Special Arbitrator Roster to decide the expungement request.” This experience may seem intimidating due to its formal structure, but working with your attorney to prepare for the hearing can help to reduce your anxiousness and approach the arbitration hearing with a greater sense of calm and poise. Your securities law attorney will work closely with you to compile evidence in support of your expungement request and prepare a compelling legal strategy that maximizes your chances of obtaining a successful outcome.
Responding to the Panel’s Decision
The panel of Special Arbitrators will review the evidence and testimony of the hearing and determine whether to grant expungement relief. Under FINRA’s newly enacted rules, “The three arbitrators must unanimously agree to award expungement based only on the narrow grounds specified in the rules, i.e., the claim, allegation or information is factually impossible, clearly erroneous, or false, or the associated person was not involved in the alleged misconduct.” Your attorney can help you evaluate the effect of the decision and determine how to respond in the event of an unfavorable outcome.
Confirming the Expungement Award
If the panel decides to grant expungement relief, this decision may need to be confirmed by the court before FINRA will recognize its authority. Your attorney will work with you to obtain the court confirmation and ensure that FINRA honors the award by removing the information from the CRD and BrokerCheck.
Learn More About How to Expunge Your FINRA Record Today
When it comes to defending your professional reputation, you deserve to work with an experienced legal advocate who can help you achieve your goals. If you are interested in learning more about the FINRA expungement request process or if you are struggling with unfair customer disclosures that are harming your reputation, get in touch with a trusted and caring securities law attorney as soon as possible to start taking control of your future.
If you are struggling with unfair or baseless customer dispute information that’s staining your professional reputation as a financial advisor, filing a FINRA expungement request may be an option. Give Judex Law, LLC, a call today at (303) 523-4022 to discuss your options with a highly experienced and friendly securities law attorney.
