DEFENDING YOUR PROFESSIONAL INTEGRITY
Stay current on recent changes in the regulatory environment
Many advisors are concerned that seeking an expungement award from FINRA for customer disputes is somehow adversarial to FINRA. Quite the opposite. Expungement of qualifying customer disputes is granted to improve the integrity of the information in the CRD system.
Most people have checked out a company’s online reviews to assist in making the decision to do business with that company. It is no secret that several online reviews are wholly fictitious. BrokerCheck is, in its purest form, a website with online reviews of advisors. However, there are no “positive reviews”; only negative reviews in the form of Customer Disputes. The closest an advisor can get to a “positive review,” is the absence of “negative reviews.”
FINRA is making an effort to eliminate fictitious disclosures. It is clearly stated in the Notice to Arbitrators (updated in September of 2015) that “Customer dispute information should [sic] be expunged when it has no meaningful investor protection or regulatory value.” By definition, customer disputes which have been denied, withdrawn, or closed no-action have been determined to be without merit; and thus should be expunged. In addition, arbitration panels have continually decided that there is “no meaningful investor protection or regulatory value” to disputes settled where:
If you have grown tired of having to explain disclosures on your Brokercheck/U4, and the above seems to apply to your situation, AdvisorLaw is the right choice of representation for obtaining a grant of expungement from FINRA. Our team is experienced in navigating the arbitration process.
The entire process takes no less than nine months to complete. So don’t wait until you lose a big client or prospective client, you are ready to transition to a new B/D but they will not proceed until your U4 is cleaned up, or you need a practice acquisition loan.
Email or call us today to find out what is involved in getting these disclosures permanently expunged from the CRD system.
President, Managing Attorney
3400 Industrial Lane, Unit 10A
Broomfield, CO 80020
Main Ph: (303) 952-4025
Fax: (720) 452-0613
This blog is my ongoing effort to inform and educate FINRA licensed professionals about the evolving regulatory ecosystem in which we operate.