New Rules for Expungement of Certain Broker Check Complaints

December 20, 2011

December 2011 may be a watershed date in the battle for fairness for stockbrokers. Constantly barraged by complaints, which are often no more than attempted extortion, the FINRA board may make some rule changes. It's a modest beginning; but it's a start. The proposal would amend the arbitration procedures adopting rules for expunction of consumer complaints for parties that are not named. You need to read that again: the new rules, and I'm quoting from a FINRA press release, better yet I'll just let you read it: “….new rules that would permit persons who are the "subject of" allegations of sales practice violations made in arbitration claims, but who are not named as parties to the arbitration, to seek expungement relief by initiating In re expungement proceedings. “ Albeit not a breakthrough….. it does represent the first of what should be many steps towards a level playing field in fairness for brokers who are the victim of consumer complaints that are little more than money-grabs. It needs to be done so that the true purpose of Broker Check, that is to apprise the public of financial advisors who are performing below standard, can be identified fairly without maligning the entire industry. More news will follow as we move forward toward Broker Check becoming a meaningful vehicle for the general public to become aware of broker malfeasance.

Expunging CRD Information for Stock Brokers on Broker Check

December 9, 2011

FINRA Rule 2080 is the stock broker’s most effective route to having a customer complaint removed from Broker Check. You know this because complaints are sent to FINRA on the member’s U5 report or your own U4 and then appear on Broker Check. Unless FINRA voluntarily decides to remove the complaint (for reasons go to Rule 2080) the only way to get them off is to file an In Re Expungement action in Federal Court. For a free review of your case send a copy of the complaint and the arbitrator's ruling that recommends expunction. Call me first so I can expect your mail. Ralph Behr, 888 SE Third Ave., Suite 400, Fort Lauderdale, FL 33316 or call: 1-800-761-3446.

Removing Customer Complaints from Broker Check

December 5, 2011

Financial Advisors can have customer complaints removed from Broker Check. My office provides this service to Financial Advisors. The number of complaints removed dropped after 2004, (when the rules changed), but a Rule 2080 removal does get results: the process works and Broker Check removes the complaint. If you are a Financial Advisor and you want more information, or help, for a Rule 2080 Expungement action contact attorney Ralph Behr at 1-800-761-3446 or email me at or refer to my office website for more information. A 2080 Rule action is: OBTAINING AN ORDER OF EXPUNGEMENT OF CUSTOMER DISPUTE INFORMATION FROM THE CENTRAL REGISTRATION DEPOSITORY [CRD] SYSTEM.