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Expungement Rule 2080

Removing Disputed Claims from FINRA Brokercheck under Expungement Rule 2080

Since the June 2016 hyperlink rule, FINRA brokercheck has an expanded role for client / investors who wish to find out about their advisors record with other clients and member firms.

Expungement Rule 2080Its anticipated that investors will use this tool more and more going forward to search advisor information as well as firm history and its officers. While, the hyperlink rule didn’t change information available on FINRA Brokercheck; it does drive more traffic to brokercheck and create greater awareness of the tool.  The byproduct of which is; informed investors that know little about facts of a case which may have been a frivolous claim or a dropped dispute.

Not to discount legitimate claims against advisors who’ve made grievous mistakes or falsified records. Expungement under Rule 2080 is only available where factual basis exists. Still many advisors who would qualify for expunging a claim do not pursue it. Bottom line investor disputes and claims hurt an advisors relationship with their employer and their clients, and can ruin chances of transitioning to another firm.

 

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FINRA Considers Stricter Reforms for Arbitration

The FINRA arbitration system is a valuable part of the regulatory process, giving clients and brokers a way to settle disputes without the hassle of going to court. However, the current rules for the process have been criticized for being a bit misleading to investors. Consequently, FINRA is now considering stricter rules for choosing who can serve as an arbitrator.    Read more