Navigating the complexities of a Financial Industry Regulatory Authority (FINRA) expungement can be daunting. Did you know FINRA Rule 2080 allows for erasing certain information from your record? In this article, we’ll break down what you need to know about finding an experienced FINRA expungement attorney and each step of the process itself.
Buckle up, because we’re here to guide you through this challenging journey.
Table of Contents
- Hiring a FINRA expungement attorney is crucial in navigating the complexities of the process and ensuring a successful outcome.
- A FINRA expungement attorney has specialized knowledge and experience in handling expungement cases, including expertise in FINRA arbitration proceedings.
- Consultation with a qualified attorney is important to understand your options, make informed decisions, and determine if pursuing a FINRA expungement is the right choice for you.
Understanding FINRA Expungement Proceedings
FINRA expungement proceedings involve the process of seeking to have certain types of information removed or cleared from a financial advisor’s record.
Types of information that can be expunged
Certain facts can be wiped clean from the Form U5. One key rule, FINRA Rule 2080, says that info tied to a job end or internal check can go away. So if you get fired and it is not fair, or your boss looks into you for no good reason, it can be cut out.
If clients gripe about you and six years pass by, this too gets axed off the Form U5. Lawyers who know securities rules help with this scrub down of bad data on your record.
Steps to seek expungement
To seek expungement through FINRA, there are specific steps you need to follow. First, you should consult with a securities attorney who specializes in FINRA expungement cases. They will guide you through the process and help determine if your situation qualifies for expungement.
Once you decide to proceed, your attorney will file a FINRA Action on your behalf. This involves initiating arbitration proceedings against the parties responsible for the unfair disclosure items on your record.
Next, it is important to obtain an Award from the arbitration panel of arbitrators supporting arbitration claim for expungement.
After obtaining the Award, a court confirmation is required to make sure that the information is properly removed from your record and prevents future issues. Finally, it’s essential to review and update any related reports or records such as the FINRA BrokerCheck Report.
Findings required for expungement
To secure expungement, certain findings must be established. According to FINRA Rule 2080, there are three requirements that need to be met requesting expungement. First, a court or arbitrator must rule in favor of the registered representative and grant expungement hearings with an award against the broker-dealer or firm involved.
Second, it must be determined that one of three conditions exists: the information contained in the disclosure is factually inaccurate or clearly misleading; the member firm did not comply with its duty to correct inaccurate information on Form U5; or maintaining the disclosure record would impose an unfair burden on the individual’s ability to obtain employment.
Finally, it should also be demonstrated that the expungement rules would not harm investor protection or violate public interest.
Clearing the record after arbitration
After going through the arbitration panel orders expungement process, you may wonder how to clear your record. Once an expungement is approved, it is important to take the necessary steps to ensure that the information is removed from your record.
You can seek assistance from a FINRA expungement attorney who has experience with these proceedings. By working with a knowledgeable attorney, they can guide you through the process and help you navigate any additional steps that need to be taken after obtaining an expungement award.
Remember, seeking legal advice is crucial in order to understand your options and make informed decisions about clearing your record.
Expungement with or without court proceeding
Expungement relief can be pursued with or without a court proceeding. FINRA Rule 2080 allows for arbitration proceeding the expungement of certain information from the Form U5, which is submitted to FINRA. Registered representatives who wish to explore their expungement options can seek assistance from securities attorneys experienced in handling FINRA arbitration proceedings.
By filing a FINRA Action and obtaining an Award, individuals may be able to request expungement to clear their record through the court confirmation process. However, it’s important to note that expungement can also be sought directly through arbitration proceedings without involving the court system.
Either way, consulting with a skilled attorney is crucial in navigating this complex process and ensuring the best chances of success in clearing unfair disclosure items from your record.
Importance of Hiring a FINRA Expungement Attorney
Hiring a FINRA expungement attorney is crucial due to their expertise in handling expungement cases, offering free initial consultations, and having experience with FINRA and arbitration procedure.
Expertise in handling expungement cases
A FINRA expungement attorney has the specialized knowledge and experience to effectively handle expungement cases. These attorneys understand the intricacies of the process and are familiar with FINRA’s rules and regulations.
They can guide financial advisors through each step, from filing a FINRA Action to obtaining an arbitration Award, and seeking Court confirmation. With their expertise, they can help clients navigate the complex world of FINRA arbitration proceedings and ensure that their interests are protected.
Additionally, reputable law firms like Haselkorn & Thibaut have successfully assisted brokers in obtaining expungement through FINRA actions. So if you’re a financial advisor looking for expert assistance with your disclosure expungement, it’s important to consult a knowledgeable attorney who specializes in securities litigation and arbitration.
Free initial consultation
If you’re considering pursuing a FINRA expungement, it’s important to seek the guidance of a qualified attorney who specializes in this area. Finding the right attorney can be made easier by taking advantage of their free initial consultation.
During this consultation, you will have an opportunity to discuss your case and ask any questions you may have about the expungement process. This is a valuable opportunity to get expert advice and determine if pursuing a FINRA expungement is the right choice for you.
By consulting with an experienced attorney, you can gain clarity on your options and make an informed decision moving forward.
Experience with FINRA arbitration
With substantial experience in FINRA arbitration proceedings and civil litigation, our team of attorneys has successfully represented numerous clients seeking expungement. We understand the complexities of the customer arbitration process and are familiar with the rules and regulations set forth by FINRA.
Our expertise allows us to navigate through the arbitration hearing efficiently and effectively to present a strong case for expungement on behalf of our clients. Whether you have been unfairly targeted or want to clear your record after an internal review, we are here to provide dedicated representation and guide you through the full expungement hearing process.
Contact us today for a free consultation to discuss your options regarding FINRA arbitration review settlement documents and expungement.
The Process of FINRA Expungement
The process of FINRA expungement involves navigating the Central Registration Depository and BrokerCheck, understanding FINRA’s position on expungement, identifying the two types of expungements available, meeting the standards for expungement, and adhering to timing and additional rules for submitting expungement requests.
Central Registration Depository and BrokerCheck
The Central Registration Depository (CRD) is a database maintained by FINRA that contains information about brokerage firms and individuals registered with FINRA. It includes details such customer dispute information such as employment history, disciplinary actions, customer complaints, and arbitration awards.
BrokerCheck is a public tool provided by FINRA that allows investors to access information from the full CRD system about financial advisors and brokerage firms. Investors can use BrokerCheck to research the background of their financial advisor before making any investment decisions.
It helps provide transparency and ensures investor protection in the securities industry.
FINRA’s position on expungement
FINRA, the regulatory organization for the securities industry, has specific standards and guidelines regarding expungement. According to FINRA Rule 2080, certain information can be removed from the Form U5, which is submitted to FINRA.
However, expungement should only be granted in cases where it is clear that the information being expunged is false or erroneous. FINRA aims to strike a balance between protecting investors and ensuring fair treatment for registered representatives.
It is important to understand these rules and requirements when seeking expungement through FINRA arbitration proceedings.
Two types of expungements
There are two types of expungements available in FINRA proceedings. The first type is known as “expungement with a court order and court confirmation proceeding only.” This involves filing a FINRA Action, obtaining an Award, and then seeking court confirmation to have the information removed from the record.
The second type is known as “expungement without court proceeding.” In this case, the broker files a request for expungement directly with FINRA and does not involve the courts. Both types of expungements require meeting certain standards and following specific timing rules.
It’s important to understand these options when pursuing expungement to ensure compliance with FINRA regulations.
Standards for expungement
To understand the standards for expungement in FINRA proceedings, it is important to know that not all information can be expunged. Only certain types of unfair disclosure items are eligible for removal from a financial advisor’s record.
These may include false or misleading information, defamatory statements, or any information that could harm the advisor’s professional reputation.
When seeking an expungement of underlying customer arbitration dispute, there are specific findings that must be met. The arbitrator must find that the claim, allegation, or information being sought for removal has no basis and should never have been included in the broker’s record.
Additionally, the arbitrator must determine that keeping the information would cause unjust harm to the broker’s career.
It’s also worth noting that timing plays an important role in submitting an expungement request. In most cases, brokers have up to six years after a customer complaint is submitted to seek expungement.
This statute of limitations ensures that timely requests are made and prevents unnecessary delay.
Timing and additional rules for expungement requests
FINRA expungement requests must be made within the general statute of limitations, which is typically six years after a customer complaint is filed. It’s important to note that this time frame may vary depending on the specific circumstances of the customer dispute case.
Additionally, there are certain rules and requirements that must be followed when filing an expungement request with FINRA. This includes providing sufficient evidence and demonstrating why the information should be removed from public records.
Working with a knowledgeable FINRA expungement attorney can help ensure that all timing and rules are adhered to throughout the process.
Costs Associated with Expungement Proceedings
Expungement proceedings with FINRA can involve various costs that individuals need to be aware of. These costs may include FINRA fees, hearing session fees, and attorney fees. The exact amount will depend on the specific circumstances of each case.
FINRA charges certain fees for filing a FINRA Action, obtaining an arbitration Award recommending expungement, and seeking Court confirmation. These fees can vary based on the type of expungement requested and other factors.
In addition to FINRA’s fees, individuals will also need to cover the costs associated with hiring a FINRA expungement attorney.
Attorney fees for expungement cases can vary depending on the complexity of the case and the attorney’s experience. It is important to have a clear understanding of these costs before proceeding with an expungement request.
While there are costs involved in pursuing a FINRA expungement, it is important to weigh these expenses against the potential benefits of having unfair disclosure items removed from your record.
Consulting with a knowledgeable attorney who specializes in securities litigation and arbitration can provide guidance on expected costs and help ensure the best possible outcome for your case without any hidden surprises along the way.
In conclusion, hiring a FINRA expungement attorney is crucial when you party seeking expungement to clear your record. These attorneys have the expertise and experience necessary to navigate the complex expungement process.
With their help, you can effectively present your case and increase your chances of obtaining a favorable outcome. Don’t hesitate to reach out for a free consultation with an attorney who specializes in FINRA expungement proceedings today.
1. What is a FINRA expungement attorney?
A FINRA expungement attorney is a lawyer who specializes in helping individuals remove certain information from their records maintained by state securities regulators or the Financial Industry Regulatory Authority (FINRA).
2. Why would I need a FINRA expungement attorney?
You may need a FINRA expungement attorney if you want to clear your record of any inaccurate or unjust disclosures that could affect your reputation or opportunities in the financial industry.
3. How can a FINRA expungement attorney help me?
A FINRA expungement attorney can guide you through the process of petitioning for the removal of unfair or false information from your record, ensuring that all necessary steps are taken and deadlines are met.
4. What factors should I consider when choosing a FINRA expungement attorney?
When selecting a FINRA expungement attorney, it’s important to consider their experience with similar cases, their success rate, fees involved, and whether they have specialized knowledge in securities law and regulations.