Our Formal Response To Changes on FINRA Form U4 Customer Dispute Expungement

As we have been continuing to report since December 6th, 2017, FINRA has proposed changes to gut the expungement process for financial professionals who seek expungement of meritless customer  complaints under Rule 2080.

As we only represent the financial advisor, we talk to thousands of reps, nearly all of whom are enraged at the prospect of losing basic due process under the FINRA arbitration rules.  Whether you currently have a meritless customer dispute, fear allegations being indiscriminately lobbed at you in the future, or simply wish to retain the basic American rights of "innocent until proven guilty" you should read our formal response to FINRA pointing out the problems with these new measures. 

Including, and not the least of which is, FINRA's assertion that any customer dispute disclosures over 12 months old will NOT BE ELIGIBLE FOR ANY REMEDY under the new arbitration rules. 

Aged false, erroneous, impossible and defamatory customer claims against you and your business will be permanent on your CRD and BrokerCheck profile.

Monday, February 5th, was the end of the comment period.  Now we wait on the decision of a "self-regulatory" organization that has done little to protect the livelihood of their own financial professionals.

Armin Sarabi, J.D.
AdvisorLaw, LLC
​Of Counsel

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