The Financial Industry Regulatory Authority (FINRA) announced that it has temporarily withdrawn a proposal to reform financial advisor expungement procedures.
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The Financial Industry Regulatory Authority (FINRA) announced that it has temporarily withdrawn a proposal to reform financial advisor expungement procedures.
FINRA has filed proposed rule amendments with the SEC seeking to update FINRA’s expungement arbitration code. Under FINRA’s current rules, a broker seeking expungement will pay a lower fee if they include a request for nominal damages. If nominal damages are requested along with an expungement, then the case is governed by the arbitration rules for cases seeking under $50,000 in damages. The filing fee for these cases can be as little as $50. Expungement cases with no damages requested are filed under the same rules as arbitration cases seeking more than $100,000 in damages, and carry a filing fee of $1,575.
Robert W. Baird ("Baird") advisors recently were successful in expunging a complaint from a former client. The allegations include unsuitably of 529 accounts, variable annuities in individual retirement accounts ("IRAs"), and risky proprietary funds.
This is the second in a series of posts to help guide registered representatives through the process of expungement of customer complaints and other false or misleading information on their public record
A recent analysis by Golsan Scruggs reveals a staggering 231 percent increase in errors-and-omissions (E&O) liability claims among registered investment advisor (RIA)
insurers.
According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.
The Financial Industry Regulatory Authority (FINRA) has imposed fines and censured independent broker-dealers Osaic Wealth and Securities America for cybersecurity deficiencies that led to hackers accessing the private information of more than 32,000 customers.