New FINRA Rule Makes Broker Expungement More Difficult

September 23, 2014 Uncategorized

New FINRA Rule 2081, effective July 30, 2014, reads as follows:

2081. Prohibited Conditions Relating to Expungement of Customer Dispute
No member or associated person shall condition or seek to condition settlement of a dispute with a customer on, or to otherwise compensate the customer for, the customer’s agreement to consent to, or not to oppose, the member’s or associated person’s request to expunge such customer dispute information from the CRD system.

This is the latest in a trend in which FINRA is making it increasingly difficult for financial advisors to seek expungement of customer complaints from their Central Registration Depository (CRD) records.

Please contact the attorneys at Gustafson Nicolai pc if you have any questions or concerns about how this new FINRA rule might affect you.

Posted by: Adam Nicolai, Esq., September 21, 2014