What Is FINRA Expungement?

FINRA Expungement is a legal remedy available to financial professionals who seek to remove inaccurate, false, or misleading information from their Central Registration Depository (CRD) and BrokerCheck records. Managed by the Financial Industry Regulatory Authority (FINRA), this process is critical for maintaining a broker’s professional reputation and ensuring fair representation of their career history.

For many financial advisors and brokers, a negative disclosure—whether it stems from a customer dispute, termination, or regulatory issue—can have lasting effects on their career. Even if a claim is baseless or resolved without any finding of wrongdoing, the disclosure may remain publicly accessible. This is where FINRA Expungement becomes vital.

Why FINRA Expungement Matters

A clean BrokerCheck report is essential in the securities industry. It impacts not only employment opportunities but also a client’s decision to engage an advisor. Inaccurate or outdated disclosures can damage a broker’s credibility, hinder career advancement, and erode client trust.

FINRA acknowledges this and has created a formal arbitration process through which brokers can request the removal of such records. However, the process is highly technical and demands a precise legal strategy—making the role of an experienced law firm indispensable.

Bakhtiari & Harrison’s Expertise in FINRA Expungement

At Bakhtiari & Harrison, we understand the stakes involved in FINRA Expungement. Our firm has built a national reputation for successfully representing financial professionals in securities-related disputes. With decades of combined experience in securities law, arbitration, and litigation, our attorneys have helped numerous clients navigate the expungement process with confidence and clarity.

We take a client-centric approach to every case. Our legal team carefully evaluates the facts, determines the merits of the expungement request, and crafts a compelling case strategy designed to meet FINRA’s strict criteria for record removal. Whether through direct negotiations or formal arbitration, we strive for outcomes that protect our clients' professional standing.

The FINRA Expungement Process

The expungement process involves filing a claim with FINRA Dispute Resolution, either as part of a new arbitration or a separate proceeding after a dispute has been resolved. The petitioner must demonstrate that the disclosure meets one or more of the grounds set forth in FINRA Rule 2080, such as:

• The claim was factually impossible or clearly erroneous

• The registered person was not involved in the alleged misconduct

• The information is false or misleading

Once the arbitration panel grants the expungement request, the decision must then be confirmed in court. This final judicial step authorizes the removal of the disclosure from the CRD system.

Challenges and Considerations

FINRA Expungement is not automatically granted, and recent rule changes have increased the scrutiny applied to expungement requests. Arbitrators now require thorough documentation, credible testimony, and persuasive legal argumentation. Therefore, attempting this process without legal representation can significantly reduce the chances of success.

Moreover, even after a successful arbitration, state regulatory authorities and courts must approve the expungement before it becomes final. This multilayered process demands not only legal precision but also a deep understanding of regulatory frameworks.

Your Partner in Professional Reputation Defense

Bakhtiari & Harrison is committed to defending the integrity and future of financial professionals across the nation. Our legal team provides personalized guidance and relentless advocacy throughout the expungement journey. Whether you're seeking to clear a single incident or multiple disclosures, we ensure your case is presented with the strength it deserves.

When your reputation is on the line, trust the attorneys who know how to protect it. Contact Bakhtiari & Harrison today to learn more about how we can assist you with FINRA Expungement and help restore your professional image.