How did FINRA determine the standards for expungement of customer dispute information?
In crafting the standards set forth in FINRA’s rules regarding expungement, FINRA was guided by the interests of regulators in having accurate and relevant information to fulfill their regulatory responsibilities, the interests of the brokerage community in having a fair process to protect their reputations where appropriate, and the interests of investors in having access to accurate and meaningful information about brokers with whom they now or in the future may engage in business. FINRA recognizes that expungement of a CRD record under any circumstances is an extraordinary remedy and should be used only when the expunged information has no meaningful regulatory or investor protection value. FINRA believes that the criteria enumerated in the expungement rules meet this standard.
Related Questions
- What would happen procedurally if an arbitration panel orders the expungement of customer dispute information from a Form U5 on the basis that it is defamatory?
- On what basis will FINRA determine to participate in a court confirmation proceeding to oppose an expungement directive?
- How did FINRA determine the standards for expungement of customer dispute information?
