FINRA member brokerage firms are required to report customer complaints against registered Financial Advisors, and these “marks” on BrokerCheck (and on your Form U4 or Form U5 and with the CRD) can pose a significant negative impact to your reputation and business success. When those complaints are false or without merit, the repercussions on your relationships with existing and potential clients can be unjust, unwarranted and ruinous.
FINRA expungements are governed by FINRA Rule 2080 (“Obtaining an Order of Expungement of Customer Dispute Information from the Central Registration Depository System”) and FINRA Code of Arbitration Procedure For Customer Disputes Rule 12805 (“Expungement of Customer Dispute Information Under Rule 2080”). Among other things, in order to obtain an expungement, you must be able to demonstrate that:
(A) the claim, allegation or information is factually impossible or clearly erroneous;
(B) the registered person was not involved in the alleged investment-related sales practice violation, forgery, theft, misappropriation or conversion of funds; or
(C) the claim, allegation or information is false.
The standards are high, but so are the stakes when it comes to your professional reputation. Phillipson & Uretsky, LLP is knowledgable and experienced in handling expungements on behalf of financial professionals. If you are a Financial Advisor and have questions regarding disclosures that appear on your Form U4, Form U5 or on FINRA’s BrokerCheck, please give us a call to discuss whether the expungement process may be appropriate.
Call Phillipson & Uretsky, LLP at (212) 571-1255 to learn more.