Pursuant to FINRA Rule 2080, expungements of customer complaints or arbitrations from one’s CRD are available under limited circumstances. Since 2008, numerous registered representatives have had their CRD’s amended to reflect customer complaints related to Auction Rate Securities. Those CRD amendments are generally regarded as permanent, especially where there has been a settlement. Frequently, the customer never intended to complain about the registered representative’s conduct. Rather, it may have been the customer’s intent to complain about the product, or perhaps, the brokerage firm’s research or marketing materials. In those situations where it was never the customer’s intent to complain about the registered representative’s conduct, FINRA Rule 2080 provides an avenue for the permanent expungement of the customer complaint from one’s CRD.
If you are a registered representative interested in learning whether I can have a customer complaint permanently removed, or expunged, from your CRD, please call me at 800.718.1422.