In the financial services industry, your name is your most valuable asset. Clients, employers, and regulators all rely on your BrokerCheck profile to assess your integrity, competence, and compliance history. But what happens when your record is tainted by a customer complaint that is baseless, mistaken, or even fraudulent?
For financial professionals facing this challenge, FINRA Expungement provides a critical legal pathway to remove inaccurate or unfair disclosures from the Central Registration Depository (CRD) and public view. At Bakhtiari & Harrison, an “AV” rated law firm with decades of experience in securities arbitration, litigation, and regulatory defense, we’ve seen how expungement can be transformative for financial professionals seeking to restore their reputations—and reclaim their careers.
FINRA Expungement is the formal process of removing certain customer dispute information from a financial advisor’s CRD and FINRA’s BrokerCheck. It is considered an “extraordinary remedy” by the Financial Industry Regulatory Authority (FINRA) and is granted only under specific circumstances.
Expungement may be appropriate when:
A complaint was factually impossible or clearly erroneous.
The advisor was not involved in the alleged misconduct.
The claim was demonstrably false or fraudulent.
Importantly, expungement is not meant to shield wrongdoers or hide valid complaints—it exists to correct records that misrepresent the truth and unjustly harm the careers of financial professionals.
In today’s ultra-transparent world, one negative disclosure—regardless of merit—can significantly affect a financial professional’s future:
Client trust: A blemished record, even from a dismissed claim, can shake client confidence.
Employment opportunities: Many firms have zero-tolerance policies for CRD disclosures.
Business growth: Independent advisors may lose referrals or leads due to inaccurate BrokerCheck profiles.
Increased scrutiny: Regulators may be more likely to investigate professionals with prior complaints.
These consequences can persist for years, even if the complaint was ultimately proven baseless. FINRA Expungement offers a solution for restoring a fair and accurate professional narrative.
The process of expungement is governed primarily by FINRA Rule 2080, which sets forth the conditions under which expungement may be granted:
The claim is factually impossible or clearly erroneous.
For example, the advisor was not registered with the firm at the time of the alleged conduct.
The registered person was not involved in the alleged misconduct.
This applies when an advisor is named in error or included due to association with a team.
The claim, allegation, or information is false.
If documentation proves the claim was fabricated or misleading, expungement may be justified.
Meeting these criteria requires more than belief—it demands solid evidence and skilled legal argumentation.
The FINRA Expungement process is structured but can be complex. Here's how it typically unfolds:
At Bakhtiari & Harrison, we begin with a comprehensive review of the client’s CRD history, relevant documents, and the original complaint. We assess whether there’s a strong legal basis for seeking expungement.
Expungement requests are made through FINRA’s arbitration forum, even if the original complaint was resolved years ago. A new claim is filed specifically to request expungement under Rule 2080.
The customer who filed the original complaint is notified and may choose to participate in the hearing. They have the right to oppose the expungement or submit a response.
An arbitration panel hears the case. The financial professional (or their legal representative) presents evidence showing why the disclosure should be removed. This may include documents, testimony, and expert analysis.
If the panel grants the request, they issue a reasoned award, explaining how the case meets the criteria under Rule 2080.
Most expungement awards must be confirmed by a court before FINRA will act on them. This adds another layer of review and legal formality to the process.
Once the award is confirmed, FINRA updates the CRD record and removes the disputed disclosure from BrokerCheck. The result: a cleaner, more accurate public record.
FINRA has recently introduced reforms that make expungement more transparent and rigorous, including:
Stricter time limits on when requests can be filed.
Randomized arbitrator selection to avoid perceived bias.
Increased public oversight of expungement outcomes.
While these changes are intended to preserve the integrity of BrokerCheck, they also underscore the importance of experienced legal counsel in navigating the process effectively.
At Bakhtiari & Harrison, we stay ahead of these regulatory changes to ensure our clients receive the strongest possible advocacy in a system that is constantly evolving.
Our firm is nationally recognized for excellence in securities law, arbitration, and litigation. We have a long history of representing financial professionals in matters involving FINRA, AAA, and both state and federal courts.
What sets Bakhtiari & Harrison apart:
AV Rating for Legal Excellence and Ethics
Decades of focused experience in FINRA arbitration and expungement
Custom legal strategies designed for each individual case
Successful track record helping professionals restore their reputations
We’re not just advocates—we’re partners in your long-term success.
A CRD disclosure may be only a few sentences long, but its impact can echo through a lifetime. In an industry where trust is paramount, FINRA Expungement provides a powerful means to correct the record and protect a professional’s future.
It’s not an easy process, and it’s not guaranteed. But with the right evidence, advocacy, and legal expertise, it can mean the difference between a stalled career and a restored reputation.
At Bakhtiari & Harrison, we believe no financial professional should be defined by an inaccurate or unfair complaint. We help our clients reclaim what they’ve worked so hard to build—their integrity, their opportunity, and their name.
Is your record holding you back? If so, it may be time to consider FINRA Expungement—and to take the first step toward setting the record straight.
