FINRA Amends and Delays Expungement Rule Proposal

Posted on November 22nd, 2022 at 1:51 PM
FINRA Amends and Delays Expungement Rule Proposal

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) once again has amended and delayed a proposed rule change designed to tighten the process for advisors to expunge client complaints from their records.

FINRA filed to amend the rule proposal with additional restrictions and to extend the timetable for comments by at least one month on November 10, one day before the Securities and Exchange Commission (SEC) was set to rule on the proposal. The revised proposal would restrict advisors from attempting to expunge a client’s complaint if a court or arbitrator previously had found the advisor liable in the dispute.

FINRA additionally added a clause to the proposal permitting a complaining client to attend and participate in “all aspects of the prehearing conferences and the expungement hearing.” The proposal also would create a special roster of arbitrators to hear requests and would require unanimous approval from three-member panels before a complaint is expunged.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, finra

Return to Archive

TESTIMONIALS

Previous
Next

We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele

LATEST NEWS AND ARTICLES

June 23, 2025
FINRA Fines AAG Capital for RILA Exchange Violations

The Financial Industry Regulatory Authority (“FINRA”) has fined AAG Capital $100,000 and ordered the firm to pay nearly $39,000 in restitution after finding it violated Regulation Best Interest (“Reg BI”) by recommending costly registered index-linked annuities (“RILAs") to retail clients in unsuitable product excha...

June 19, 2025
SEC Charges Former Real Estate CEO in $46 Million Investment Fraud Scheme

The Securities and Exchange Commission (“SEC”) has charged Kenneth Mattson, former CEO of LeFever Mattson, with orchestrating a $46 million investment fraud scheme that targeted approximately 200 investors, many of them retired senior citizens
from his church community in California.

June 18, 2025
Audit Firms Agree to $46 Million Settlement in GPB Capital Fraud Case

In a significant development in the GPB Capital fraud litigation, several audit firms have agreed to pay a combined $46 million to settle claims tied to their alleged involvement in the $1.8 billion scheme that impacted roughly 15,000 investors, as reported by DI Wire.