potentiAl AdditionAl oBstACles for registered representAtiVes seeKing eXpungeMent
securities section
Chairs: Dominique Heller – Wiand Guerra King, P.A. & Scott Illgenfritz – Johnson, Pope, Bokor, Ruppel & Burns, LLP
With the publication of
regulatory notice 17-42,
it is clear that
finrA intends to
L
ike in an episode of
American Ninja Warrior,
registered representatives
seeking to expunge their
Central Registration Depository
(CRD) records face ever-increasing
obstacles. What was once a fairly
straightforward expungement
process has become more
complicated and expensive over
the years. With the publication
of Regulatory Notice 17-42,
expungement procedures may
become even more arduous.
In the beginning, expunging a
representative’s CRD record was
simple. Arbitrators had the power
to order expungement without
a court order. In 2003, before
FINRA was formed, the NASD
adopted Rule 2130 (now FINRA
Rule 2080), establishing additional
procedures. Representatives had
to petition a court to confirm
expungement awards before they
became effective and name FINRA
as a respondent party. Six years
la