FINRA Modifies Procedure for Expunging Complaint Information

FINRA amended the process for the expungement of customer dispute information. The amendments will go into effect on October 16, 2023.

As stated in the FINRA Notice 23-12, "The amendments impose requirements on expungement requests (a) filed by an associated person during an investment-related, customer-initiated arbitration (customer arbitration), or filed by a party to the customer arbitration on behalf of an associated person (on-behalf-of request), or (b) filed by an associated person separate from a customer arbitration (straight-in request)."

The amendments affect FINRA Rule 12000 Series ("Code of Arbitration Procedure for Customer Disputes") and FINRA Rule 13000 Series ("Code of Arbitration Procedure for Industry Disputes") (see related coverage).