Aug. 17, 2022
August 17, 2022 The changes proposed not only seem egregiously punitive to associated persons ability to clear their names, they also appear to subvert the neutrality and autonomy of arbitrators ability to determine whether the expungement criteria are met. FINRAs latest Proposed Rule Change seeks to strip away the remnants of fairness and equity. In its simplest form, expungement is the process through which an associated person seeks to have false allegations removed from the (very) public record. A reasonable standard used to determine whether allegations warrant expungement is in place namely, FINRA Rule 2080. In light of the 4% of customer dispute disclosures that were expunged during the five-year period ending 2020 and the complete absence of any example or evidence showing that expungement was granted in error, there is no reasonable basis upon which to advocate for the changes proposed by FINRA.