Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
FINRA sign in New York.

Regulation and Compliance > Federal Regulation > FINRA

FINRA Revives Plan to Create Expungement Arbitrator Roster

By Melanie Waddell

X
Your article was successfully shared with the contacts you provided.

The Financial Industry Regulatory Authority’s Board said Friday that it has approved amendments to a rule establishing a special roster of arbitrators for expungement requests.

FINRA withdrew the proposal from the Securities and Exchange Commission last May so that it could think about revising the rule.

The newly approved proposal includes amendments to the previous plan. Those changes won’t be known, however, until the proposal is filed with the SEC.

There is “no date on when that will happen yet,” a FINRA spokesperson said.

FINRA said that its special roster proposal would address “a number of significant issues” related to the expungement process.

The Public Investors Advocate Bar Association, or PIABA, has complained that the previous plan to create a roster of arbitrators with enhanced training and experience to decide whether to expunge customer complaints would not solve the problem of brokers gaming BrokerCheck.

Requests by brokers to have black marks removed from their records are granted 78% of the time, according to FINRA. The regulator says it’s committed to reforming the expungement process “so that it operates as intended — as a remedy that is appropriate only in limited circumstances.”

Melanie Waddell

@Think_MelanieW

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.