In the financial services industry, your name is your brand—and your regulatory record is your résumé. Even a single blemish, such as a customer complaint or unfounded allegation, can appear on FINRA’s BrokerCheck and cast a long shadow over your career.
But what if the complaint was false, clearly erroneous, or never should have been associated with you in the first place?
That’s where FINRA Expungement comes in. It’s a powerful, yet often misunderstood, process that allows financial professionals to clear misleading or inaccurate information from their record—restoring their reputation, rebuilding trust, and reclaiming control of their professional future.
In this article, we explore the mechanics of FINRA Expungement, who qualifies, how the process works, and why working with a highly respected firm like Bakhtiari & Harrison is essential to achieving success.
What Is FINRA Expungement?
FINRA Expungement is the process of removing certain types of disclosure events from the Central Registration Depository (CRD) and the public-facing BrokerCheck database, which investors and firms commonly use to assess the backgrounds of brokers and registered representatives.
Although BrokerCheck was designed to protect investors, it can also misrepresent the facts. Disclosures remain visible even if a case was dismissed, settled without admission of wrongdoing, or filed against the wrong individual.
Expungement provides a legal path to remove such entries—but only under strict criteria.
Why Expungement Is So Important
A customer dispute—no matter how minor or baseless—can have serious implications for a financial professional. This is especially true when that information is publicly accessible and easily misunderstood.
Here’s how a flawed record can impact your career:
Loss of client trust: Investors may interpret any disclosure as a sign of risk or untrustworthiness.
Career roadblocks: Firms may hesitate to hire or promote individuals with negative disclosures.
Ongoing scrutiny: Regulators and compliance teams may view a single complaint as a red flag, even if it lacks merit.
Ultimately, FINRA Expungement is about fairness. Professionals should not be burdened by false or misleading allegations—especially when they’ve done nothing wrong.
Who Qualifies for FINRA Expungement?
Under FINRA Rule 2080, expungement can only be granted if at least one of the following is true:
The claim, allegation, or information is factually impossible or clearly erroneous.
The individual was not involved in the alleged conduct.
The claim, allegation, or information is false.
It’s not enough to show that a case was dismissed or settled. The individual must prove that the information meets one of these strict standards, which typically requires compelling evidence, legal argumentation, and strategic presentation before a panel of FINRA arbitrators.
Understanding the Expungement Process
Although the idea of correcting your record may seem straightforward, the process is anything but. Expungement typically involves multiple steps, each with its own challenges and requirements:
1. Filing the Arbitration
A financial professional initiates an expungement request through FINRA arbitration, either as a standalone claim (called a “straight-in” filing) or as part of an existing dispute. The process is initiated through FINRA’s Dispute Resolution Services.
2. Arbitration Hearing
The individual must present their case to a panel of arbitrators, including documentation, testimony, and legal reasoning that support their request. This is often the most critical stage, as arbitrators must be persuaded to recommend expungement under Rule 2080.
3. Arbitrators’ Decision
If the arbitrators agree that the criteria are met, they issue a written recommendation for expungement. However, this alone does not finalize the process.
4. Court Confirmation
The final step is seeking judicial confirmation of the award. A state or federal court must approve the expungement recommendation before FINRA will remove the disclosure from CRD and BrokerCheck.
Because this process involves both arbitration and litigation, it requires a high level of legal sophistication.
Why Legal Expertise Is Essential
Navigating FINRA Expungement requires not only knowledge of FINRA rules, but also skill in arbitration advocacy, court procedure, and document preparation. Many expungement attempts fail not because they lack merit—but because they’re improperly filed or inadequately presented.
This is where the support of a highly experienced law firm becomes indispensable.
Bakhtiari & Harrison: Your Trusted Ally in Expungement
When your career, credibility, and future are on the line, you need more than general legal help—you need advocates who specialize in financial industry disputes. That’s where Bakhtiari & Harrison comes in.
Who They Are
Bakhtiari & Harrison is an “AV” rated law firm representing individuals and institutions in complex securities arbitration and litigation, both in state and federal courts. They regularly appear before:
FINRA (Financial Industry Regulatory Authority)
AAA (American Arbitration Association)
Other arbitration forums and regulatory bodies
Who They Represent
Financial advisors and brokers
Registered investment advisors (RIAs)
Broker-dealers and financial services firms
Professionals facing employment and industry disputes
Why Choose Them
Expungement Expertise: Deep familiarity with Rule 2080 and the evolving regulatory framework.
Strategic Advocacy: A comprehensive approach that spans arbitration hearings and court proceedings.
Proven Track Record: Successful outcomes for professionals with complex or sensitive cases.
Client-Focused Service: Clear communication, personalized attention, and zealous representation.
Whether you're facing a recent dispute or an old, damaging disclosure, Bakhtiari & Harrison provides the tools and guidance to pursue a successful expungement.
The Future of Expungement: A More Challenging Landscape
FINRA has introduced several reforms designed to tighten expungement eligibility and increase transparency. These include:
Time limits on when an expungement request can be filed
Greater customer involvement in arbitration hearings
Stricter arbitrator qualifications
Enhanced scrutiny of straight-in cases
These changes make the process more challenging—but not impossible. They underscore the importance of acting quickly and working with legal professionals who understand both the old rules and the new reality.
Conclusion: Reclaiming Your Name, Rebuilding Your Future
In the financial services industry, reputation is more than a matter of pride—it’s the foundation of your practice. An unfair or inaccurate disclosure can hold you back for years, distorting your professional identity in the eyes of clients, employers, and regulators.
FINRA Expungement is your opportunity to restore what’s been unfairly taken from you—your clean record, your credibility, and your peace of mind.
But it’s not a journey you should undertake alone. The legal and procedural complexities demand experience, strategy, and insight. With Bakhtiari & Harrison, you gain more than a law firm—you gain a team that understands your world and fights to protect your name.