Representing financial professionals, financial institutions and investors in investment loss, employment and disclosure matters, and in regulatory investigations nationwide.

Representation For Expungement Of CRD And BrokerCheck Records

The Financial Industry Regulatory Authority (FINRA) maintains disclosure records for all registered representatives in the Central Registration Depository (CRD). All of these disclosures are available to state and federal regulators and potential employers. Further, some of these disclosures are also publicly available on FINRA’s BrokerCheck portal, making them available to prospective and current clients.

These disclosures contain detailed information provided by firms on a registered representative’s Form U4 or Form U5 concerning:

  • Involuntary termination of employment
  • Customer complaints and FINRA arbitrations
  • Certain types of internal employment-related investigations
  • Certain types of arrests and convictions

Registered representatives have no control over these disclosures, even when they are false, defamatory or erroneous. For example, many types of customer complaints are reportable, even when the customer’s allegations are clearly false. The same is true of arbitrations.

Even if the firm resolves the complaint or arbitration to avoid the costs of litigation, the claim and resolution may be disclosed and become part of a registered representative’s permanent record unless expunged through the U5 expungement process. Similarly, a registered representative who is involuntarily terminated has no control over the firm’s subsequent disclosure, even if it is false or otherwise defamatory. Correcting the record would require a U5 termination expungement action.

These disclosures can permanently and negatively impact a registered representative’s reputation and, in turn, their ability to obtain clients and employment. They can also lead to regulatory inquiries. Registered representatives thus should hire competent counsel to evaluate whether there is a basis for expungement of any concerning CRD disclosure.

Our firm has considerable experience with FINRA’s procedures for expunging false, defamatory and erroneous disclosures from a registered representative’s record. This experience includes seeking expungement in existing FINRA customer and employment arbitrations, as well as filing separate FINRA arbitrations for the sole purpose of seeking expungement.

If you have any concerns about problematic disclosures on your CRD record or those that are viewable on FINRA’s BrokerCheck portal, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation.