FINRA Proposes Rule On Expunging Broker Records

Law360, New York (December 14, 2007, 12:00 AM EST) -- The Financial Industry Regulatory Authority has proposed a new rule that would clarify the process of wiping a broker's record clean after an investor dispute.

The new rule would require arbitrators considering such a request to hold a recorded hearing session and provide a written explanation if they recommend that records be expunged. If the case involves a settlement, arbitrators would be required to examine the settlement and evaluate culpability before granting a request to erase all traces of the dispute.

At present, FINRA allows brokers...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.