Call Now For a Free Consultation:
(614) 502-6165

Brokers' Record Cleansing Reaches 87% Success Rate Despite FINRA Efforts

In a report released today, the Public Investors Arbitration Bar Association stated that despite reforms by FINRA, brokers still have a high success rate when seeking expungement. Based on a recent study analyzing arbitration cases from January 1, 2012 to December, 31, 2014, of the 460 cases that resulted in settlements or stipulated awards, 87.8% were granted expungement when it was sought.

The study was an extension of the previous review conducted two years ago in which the Public Investors Arbitration Bar Association surveyed cases settled between January 1, 2007 and May 18, 2009. In the former study, it was noted that out of every 10 settled cases, nine were granted expungement. It was after this study that FINRA launched an initiative for increased training and guidance for arbitrators on situations related to the expungement process and approved a rule prohibiting expungement-conditioned arbitration settlements.

FINRA has taken steps in recent years in hopes of improving the process in which expungement is determined. This has involved emphasis regarding expungement as an “extraordinary remedy.” If a broker is granted expungement, it may send false impression of the broker to investors as the broker is cleared of any alleged wrongdoing. This means investors may be unable to get the full amount of information necessary regarding the integrity of the broker with whom they work.

Another step proposed by the lawyers’ group to improve the process was to include the additional review of broker requests by a FINRA attorney. Other proposed steps include notification to state regulators of the expungement requests and increase arbitrator training.

Meyer Wilson is dedicated to making sure investors are protected and their investments are safe. Call our securities fraud lawyers for a free consultation if you believe you have been defrauded by an investor or broker.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram