FINRA Revises Rules, Raises Fees for Expungement
Expungement Costs for Financial Advisors is going up.
According to reports this week, the Securities and Exchange Commission has approved FINRA’s rule proposal that would establish a minimum fee of several thousand dollars for broker requests to clear their records of customer complaints.
The approved rule change will make it significantly more expensive for brokers and their employers who are seeking expungement. Clearing their record will now cost close to $8,300.
Instead of paying a $50 filing fee, brokers will now be charged $1,575, and broker-dealers will be expected to pay a $3,750 processing fee and $1,900 surcharge if they are named as a nominal respondent in the proceeding.
Further, brokers will no longer be able to include $1 in damages along with their request for expungement in order for their claim to fall on the low end of FINRA’s graduated filing fee schedule.
The rule is expected to go into effect in a few months, as well as the following proposed rule changes:
- An expungement request will have to be filed two years after the customer dispute ends.
- Expungement requests will be heard by special panels of three arbitrators, and their decision will need to be by majority.
- Brokers will be required to testify in-person or via videoconference instead of calling in via telephone.
Free Consultation with a Securities Attorney
If you are a registered representative and would like to discuss your FINRA expungement options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors and registered representatives in FINRA arbitration claims throughout the country.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.