FINRA Requests Comments on Proposed Record Expungement Procedures

FINRA requested comments on proposed amendments that, if adopted, would change the current procedures for expungement hearings related to customer dispute information. Associated persons can seek the expungement of customer dispute information if it is established that a claim or allegation was factually impossible, clearly erroneous or false, or that the associated person was not involved in the alleged sales practice violation.

Under the proposed amendments, FINRA would establish a roster of arbitrators with additional training and specific experience. From that roster, a panel would be selected to decide on expungement requests in instances where (i) the underlying customer-initiated arbitration is not resolved on the merits, or (ii) the associated person files a separate expungement claim.

Comments on the proposed amendments must be received by February 5, 2018.