Will FINRA participate in every court proceeding to confirm an expungement directive?
No. As noted in response to Question Nos. 3, 7 and 8 above, member firms and associated persons may ask FINRA to waive the requirement to name FINRA as a party on the basis that the expungement order meets at least one of the standards for expungement articulated in Rule 2080. This will save members and FINRA time and expense by enabling FINRA to review the awards and findings of the arbitrators and to determine whether a waiver is appropriate, as discussed in response to Question No. 7. Although FINRA expects that arbitrators will consider the overwhelming majority of expungement requests, a judge may also make the affirmative finding required under Rule 2080. However, as noted in response to Question Nos. 3 and 8 above, and Question No. 16, below, member firms or associated persons seeking expungement relief in court (as plaintiff or defendant) will be required to name FINRA as a party. FINRA will determine whether to oppose the expungement request based on the reason(s) for requesti
Related Questions
- If FINRA tells the party seeking expungement that FINRA must be named as a party in the court confirmation process, where should FINRA be served with the court papers?
- On what basis will FINRA determine to participate in a court confirmation proceeding to oppose an expungement directive?
- Will FINRA participate in every court proceeding to confirm an expungement directive?
