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?
As noted in response to Question No. 1, consistent with the 1999 moratorium, FINRA may continue to expunge, without a court order, expungement directives contained in arbitration awards rendered in disputes between registered representatives and firms in which the arbitration panel states that expungement relief is being granted because of the defamatory nature of the information. Accordingly, FINRA will expunge this information from the sections of the Form U5 relating to reasons for terminations or internal reviews without requiring court confirmation of the order. If, however, the arbitration panel orders expungement of customer dispute information from any other section of the Form U5 or from the Form U4, the order is subject to the requirements of Arbitration Code Rule 12805 or 13805, and Rule 2080 with respect to the additional expungement relief.
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?
- Can a plans voluntary level of appeal include binding arbitration as a form of benefit dispute resolution?
- How did FINRA determine the standards for expungement of customer dispute information?
