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

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.