Not every negative entry on your FINRA record has to stay there. For customer dispute information, FINRA recognizes three circumstances that may support expungement.
The information is clearly wrong
You may qualify for expungement when the record says something about you that the facts clearly disprove. For example, if a customer dispute names you for conduct that happened before you even worked for the firm, the information could not be accurate.
This ground applies when the information conflicts with facts that show the customer’s claim cannot be correct. It is not enough that you simply disagree with the customer’s account.
You were not involved in the alleged misconduct
You may qualify if a customer accuses you of misconduct that you did not commit. FINRA includes claims involving improper sales practices, as well as allegations that you forged documents, stole or misused money or wrongfully converted funds.
For example, a customer may accuse you of misusing funds when someone else actually handled the transaction and you had no involvement. If the records support that, your lack of involvement could provide grounds for expungement.
The information is false
You may qualify when the customer’s claim or allegation is simply untrue. For example, if a customer says you made unauthorized trades but you have signed records showing that the customer authorized them, you may have grounds to challenge the information. FINRA gives this type of situation as an example of a potentially false claim.
Know when to challenge your record
If you believe customer dispute information on your FINRA record does not accurately reflect what happened, an attorney can help you review the record and understand whether your situation may qualify for expungement. Taking a closer look at the information and the circumstances behind it can help you decide whether challenging it makes sense.