In today’s fast-paced financial world, reputation is everything. For brokers, investment advisors, and other financial professionals, even a single disclosure on their FINRA record—regardless of its accuracy—can have long-lasting consequences. A misunderstanding, a dismissed claim, or even a frivolous customer complaint can remain a permanent scar on their professional image.
This is where FINRA Expungement comes in.
This article explores what FINRA Expungement is, why it matters, the complex process involved, and how the experienced team at Bakhtiari & Harrison, an “AV” rated law firm, is uniquely equipped to help professionals clear their records and move forward with confidence.
What is FINRA Expungement?
FINRA Expungement is the legal process through which a financial professional can have certain customer dispute information or disciplinary records removed from the Central Registration Depository (CRD) and BrokerCheck. These public databases are widely used by employers, clients, and regulators to evaluate the background of financial advisors and broker-dealers.
The expungement process is intended to be an extraordinary remedy—one reserved for situations where the information in question is factually inaccurate, false, or clearly erroneous. In other words, expungement isn’t about rewriting history; it’s about correcting it.
Why Expungement Matters More Than Ever
In the era of digital transparency, potential clients and employers often rely heavily on BrokerCheck and similar tools before making hiring or investment decisions. A single claim—regardless of its merit—can derail careers, limit advancement opportunities, and erode trust.
Even complaints that were withdrawn, denied, or settled without admission of guilt can stay on a professional’s record indefinitely. The lingering presence of such data can present a distorted view of the individual’s history, reducing years of hard-earned credibility to a question mark in the eyes of a potential client or employer.
For these reasons, pursuing FINRA Expungement is not just a defensive strategy—it’s a proactive step toward restoring a professional’s good name.
The Complexities of the FINRA Expungement Process
While the goal of expungement is simple—clearing false or misleading information—the path is anything but. The FINRA Expungement process is technical, procedurally complex, and requires meeting a strict set of criteria outlined under FINRA Rule 2080.
In general, expungement can be granted under one or more of the following conditions:
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The claim or allegation is factually impossible or clearly erroneous.
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The registered person was not involved in the alleged investment-related sales practice violation, forgery, theft, misappropriation, or conversion of funds.
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The allegation is false.
Successfully navigating this process typically involves:
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Filing an arbitration case through FINRA or AAA.
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Presenting compelling evidence before a panel of arbitrators.
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Receiving a written award recommending expungement.
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Obtaining a court order confirming the award.
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Submitting the court order to FINRA for final removal.
Each of these steps comes with legal and procedural hurdles. Without seasoned legal guidance, even deserving expungement claims can falter.
Why Choose Bakhtiari & Harrison?
With years of focused experience, Bakhtiari & Harrison has developed a reputation as a leading authority in securities arbitration and litigation. The firm represents financial professionals, registered investment advisors, and broker-dealers across a range of matters, including regulatory investigations and employment disputes.
What sets Bakhtiari & Harrison apart in FINRA Expungement cases?
1. Proven Legal Expertise
As an AV-rated law firm—a distinction indicating the highest level of professional excellence—Bakhtiari & Harrison brings both credibility and capability. Their attorneys are well-versed in the nuanced requirements of Rule 2080 and know how to build strong, persuasive cases for expungement.
2. Tailored Representation
Every expungement case is unique. Bakhtiari & Harrison takes a personalized approach, diving deep into each client's history, the nature of the disclosure, and the legal grounds for expungement. This ensures a strategy that is both compliant and compelling.
3. A Track Record of Success
With numerous successful expungement outcomes, the firm has a demonstrated ability to navigate arbitration hearings, negotiate settlements when appropriate, and secure favorable rulings in both state and federal courts.
The Personal and Professional Impact of Expungement
When financial professionals succeed in clearing their record through FINRA Expungement, the impact is transformative. Beyond the obvious career benefits—enhanced employability, increased client trust, and better business opportunities—there is a deep sense of personal vindication.
Expungement is not about erasing history; it's about correcting the record to reflect the truth. It enables professionals to move forward without being unfairly tethered to unsubstantiated claims or past disputes that were resolved without fault.
Looking Ahead: A More Fair and Accurate System?
As awareness of FINRA Expungement grows, so too does the conversation about its limitations and the need for reform. Critics argue that the process is too complex, too costly, and inaccessible to many deserving professionals. Some advocate for a more streamlined and transparent process, while others call for an independent review mechanism separate from the arbitration system.
What remains clear, however, is that until these reforms are realized, professionals must rely on skilled legal counsel to navigate the current framework. And in this space, firms like Bakhtiari & Harrison play a critical role—serving not only as advocates but also as protectors of professional integrity.
Conclusion: Reclaiming Reputation, Reclaiming Control
In a profession where trust is currency, a tarnished record—no matter how undeserved—can be a major liability. But with the right legal team, that blemish doesn't have to be permanent. FINRA Expungement offers a path to reclaiming one’s reputation, and ultimately, one’s career.
For financial professionals looking to take control of their narrative, working with a seasoned legal team like Bakhtiari & Harrison can make all the difference. As the financial industry continues to evolve, so too must the mechanisms for ensuring fairness and accuracy in how professionals are judged.
Clearing the record is not just a legal victory—it's a powerful affirmation of truth, integrity, and the right to a fair professional future.