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Here at AdvisorLaw, we’ve been at the forefront of advisor expungement for years. As the financial industry evolves, so do the rules surrounding this remedy that’s crucial to setting the record straight.
A Sharper Decline Than Expected
As recently reported, new FINRA data reveals a significant drop in expungement requests through its own Dispute Resolution forum, since the implementation of stricter policies in October of last year. Doc Kennedy, president and founder of AdvisorLaw, isn’t surprised by the trend, as FINRA has been moving to gut its expungement forum for the last several years.
“There’s no question that there’s been a steep decline in expungement requests being brought before FINRA arbitration panels,” says Kennedy. “The new rules have made the FINRA expungement process significantly more difficult and expensive.”
Expungement costs through FINRA’s forum have skyrocketed under the new regime. Kennedy estimates that advisors can now expect to pay well over $10,000 in fees, thanks in part to hefty surcharges levied by FINRA. Additionally, the requirement of unanimous approval by three-member arbitration panels makes success less likely.
“It’s a double whammy for advisors seeking to clear their names,” says Kennedy. “The cost is prohibitive for many, and the odds of success have shrunk considerably.”
Luckily, this isn’t where the story ends for advisors.
Shifting Strategies: Beyond FINRA’s Forum
While expungement requests through FINRA’s forum have dwindled, Kennedy emphasizes that the demand for expungement services remains strong. AdvisorLaw has been pioneering alternative forums for years, under the expectation that FINRA would ultimately destroy the premise of a fair and balanced approach to expungement for advisors.
“Advisors are still very interested in clearing their records,” he says. “We’re simply taking these cases to more favorable forums, such as regular courts and organizations like JAMS and AAA.”
Proven Track Record & Trusted Representation
For nearly a decade, AdvisorLaw has established itself as a leading advocate for financial advisors seeking expungement. Our team boasts a remarkable success rate, having secured thousands of expungements for clients across the nation. We understand the intricacies of the expungement process, regardless of the forum chosen, and we leverage our in-depth knowledge to craft compelling arguments on your behalf.
Learn more about our Disclosure Expungement services here.
Were expungements too readily granted in the past? Our experts argue that these numbers simply reflect the strength of the cases and the absolute ubiquity of meritless complaints.
Contact Us For A Complimentary Consultation
Do not hesitate to take control of your narrative. Contact AdvisorLaw today for a consultation. During our initial meeting, we’ll assess your specific situation and explore all available expungement options. We are confident that by leveraging our track record through these new forums, we can achieve a successful outcome and pave the way for a more promising future in the financial advisory industry.