SEC Opens New Comment Period for FINRA Proposal on Expunging Customer Complaint Information

The SEC opened a new comment period to consider whether to approve a FINRA proposal that would amend the Code of Arbitration Procedure for Customer Disputes ("Customer Code") and the Code of Arbitration Procedure for Industry Disputes ("Industry Code") to impose additional requirements for expunging customer dispute information.

The proposal was first published in the Federal Register on August 15, 2022 (see previous coverage). FINRA later consented to an extension of the period for the SEC to approve the proposal until November 11, 2022.

The SEC instituted the proceedings in order to "allow for additional analysis and input concerning whether the proposed rule change, as modified by Amendment No. 1, is consistent with the Exchange Act and the rules thereunder."

Comments on the proposal and objections must be submitted by December 7, 2022. Rebuttals to submitted comments must be submitted by December 21, 2022.