Expungement of Customer Dispute Information

What this video covers

• What expungement physically removes from the Central Registration Depository (CRD) and BrokerCheck, and why dismissal of the underlying claim leaves the disclosure in place
• The strict two-step procedural requirement: an arbitration award or order containing expungement relief, then confirmation by a court of competent jurisdiction, and why FINRA never grants expungement directly
• The three substantive standards (factually impossible or clearly erroneous; not involved in the specific violation; false) and why each requires an affirmative finding, not just a claim that lacks merit
• Why settlement, dismissal, or low-dollar dispositions cannot substitute for an affirmative finding under one of the three standards
• When FINRA must be named as an additional party to court confirmation proceedings, and the difference between standard waivers and residual waivers requiring extraordinary circumstances
• The threshold test for residual waivers: meritorious relief plus no material adverse effect on investor protection, CRD integrity, or regulatory requirements
• What expungement does not affect: underlying arbitration awards and payouts, regulatory disciplinary findings, and FINRA's internal records for examination and supervisory purposes