What You Need to Know About FINRA and BrokerCheck Expungements

As a broker, information about customer disputes through FINRA and BrokerCheck can have a serious impact on your future. You may be worried about these disputes, especially when the issues were quickly resolved or otherwise rejected or dismissed. The dispute itself can still hurt your future. 

While it may not be a crime to have a dispute with a customer, you may have a chance to get that record expunged, so you don’t have to face penalties that could hurt your business. 

Here’s what you need to know about getting these disputes expunged: 

Customer Complaints Can Hurt Your Career 

The bad news is, a customer having a dispute with you could hurt you even if nothing came of the dispute. It may have been rejected, settled amicably, or dismissed, but it could still affect whether people choose to work with you. BrokerCheck is a free database where anyone could see any past disputes. Even if they don’t have access to FINRA’s databases, they can see that you have a dispute on your claim. 

While these records may contain more information about your case, a lot of potential customers may not pay much attention to that. They may instead see the number of disputes and decide not to work with you. 

How to Get Complaints Expunged

When you’re facing trouble because of a dispute, your best option may be to talk to a FINRA expungement lawyer, who can fight to get your dispute removed from your record. They can help you file a request for expungement relief. Your claim will be brought before an arbitration panel, which could be one to three arbiters depending on the amount of money involved. 

To get an expungement, you’ll need to prove at least one of the following: 

  • The dispute was factually impossible
  • The broker wasn’t involved
  • The claim was false

Once they review the claim, they can decide whether you and your lawyer have provided enough evidence for your defense. From there, they may uphold the ruling, or they may remove the dispute from your name on BrokerCheck and FINRA’s records. 

Protect Yourself from Unfair Penalties

If you’ve been in the middle of a dispute, you may be right to worry about the effects of a dispute on your record. Fortunately, you have a chance to act now, expunge those disputes, and get back to your business. 

If you’re concerned about these losses, you have opportunities to make a difference for your future. All you have to do is call a lawyer and get the help you need to get your record clean.