DEFENDING YOUR PROFESSIONAL INTEGRITY
Stay current on recent changes in the regulatory environment
A good friend of mine recently bought a new car. Every part of the vehicle got him excited - the 0-60 acceleration, the color, the base horsepower, the comfort, even the rear-facing camera. After a few weeks of owning it, he took me out to lunch on a hot summer day. While it definitely was comfortable, and we certainly had no problem reaching the speed limit quickly, the “best part” of the car according to him on this day – the cooling seats. He wasn’t even aware the car had the capability until after he bought it. It’s funny how in certain scenarios the least flashy part of a purchase is the one we end up valuing the most.
A financial advisor’s BrokerCheck profile is the equivalent of the 0-60 acceleration time displayed on a new muscle car. It can be the standard by which a consumer will instantly judge their choice to hire or fire a financial advisor. Consequently, financial advisors quickly understand the value in expunging these disclosures that can otherwise slow down the acceleration of their business growth. We are often hired solely on this metric alone. However, there is another lesser-known effect of our process that can often be the most valuable.
Customer dispute expungement carries with it the unique quality of also being deleted from an advisor’s CRD. Although not as flashy as the expungement from the public-facing side of a CRD (BrokerCheck), cleaning up any trace of these disclosures from the industry-facing side of the CRD can be even more beneficial. For many advisors, making a transition to a new firm is something they will face at multiple points in their career. However, with the heightened regulatory environment today, recruiters tell us top-tier firms will not even consider a broker with customer disputes on their record. No matter how innocuous or meritless the complaints may seem, some firms do not want to take on additional risk exposure.
While most disclosures stay with a broker forever, customer disputes are rare in that “expungement” means a new firm’s compliance department will also see no trace of that history on the CRD. For the advisor that is looking to make a jump to a new BD, this may not be why they hired us initially, but with sky-high signing bonuses and increased payouts to move, this may end up being the most profitable decision they’ve made in their career.
If it’s the 0-60 acceleration or it’s the cooling seats you’re interested in, call or email us today to discuss how expungement of your customer disputes can ensure you keep your business looking brand new.
EA, Executive Vice President
3400 Industrial Lane, Unit 10A
Broomfield, CO 80020
This blog is my ongoing effort to inform and educate FINRA licensed professionals about the evolving regulatory ecosystem in which we operate.