This is the last in our series on the FINRA expungement process, and, unfortunately, the future looks grim.
Not only has FINRA made it nearly impossible (in an obvious attempt to curry favor with the public investor bar), but now it is considering some shocking additional changes to the process. Essentially, FINRA is looking to put the proverbial “final nail in the coffin” to any hope for expungement.
For example, FINRA is considering increased fees for expungement requests and a one-year limitation on requesting expungement relief. FINRA also would like to control the selection of arbitrators from the Expungement Arbitrator Roster. Additionally, FINRA is seeking to preclude subsequent expungement claims where the brokers did not request expungement in the underlying customer case, as well as formulating additional standards for recommending expungement. Finally, FINRA may require all expungement hearings must be in person or via videoconference. All of these proposals have not been adopted, but are shockingly scary.
In sum, FINRA’s expungement rules have severely limited a broker from seeking expungement. One wonders why have the process at all.