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FINRA Proposes Rule On Expunging Broker Records

Law360 (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...
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