SEC Approves FINRA Rule 2081 Regarding Prohibited Conditions Relating to Expungement of Customer Dispute Information (FINRA Reg. Notice 14-31)

FINRA issued a regulatory notice regarding the SEC's approval of FINRA Rule 2081, which is effective immediately.

The new rule prohibits member firms and associated persons from conditioning or seeking to condition the 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 firm's or associated person's request to expunge such customer dispute information from the Central Registration Depository.

See: FINRA Reg. Notice 14-31.Related news: SEC Approves FINRA-Proposed Rule to Prohibit Conditioning Settlements on Expungement of Information from CRD (Fed. Reg.) (July 28, 2014); SIFMA Submits Comments to SEC on Proposed FINRA Rule Regarding Prohibited Conditions Relating to Expungement of Customer Dispute Information (May 14, 2014); FINRA Proposes Rule Regarding Prohibited Conditions Relating to Expungement of Customer Dispute Information (Fed. Reg.) (with Lofchie Comment) (April 23, 2014); FINRA Proposes Rule Regarding Prohibited Conditions Relating to Expungement of Customer Dispute Information (April 14, 2014).