In the financial services industry, trust is everything. Clients trust financial professionals with their futures, firms trust them with their reputations, and regulators trust them to uphold the integrity of the markets. But what happens when that trust is unfairly called into question—when a financial professional’s record is tarnished by a complaint that is frivolous, inaccurate, or demonstrably false?

FINRA Expungement exists to answer that question. For registered representatives, investment advisors, and broker-dealers, it offers a critical legal pathway to remove damaging and misleading information from the public record. It’s a process that requires precision, strategy, and deep legal knowledge—attributes that define the team at Bakhtiari & Harrison, an “AV” rated law firm with a national reputation for excellence in securities arbitration and litigation.

This article explores what FINRA Expungement is, why it matters, how it works, and how Bakhtiari & Harrison helps professionals navigate it successfully.

The Stakes: Why Expungement Is More Than a Technicality

The Financial Industry Regulatory Authority (FINRA) maintains BrokerCheck, a public database that lists professional backgrounds, employment histories, regulatory actions, and customer disputes involving licensed financial professionals.

While intended as a tool for investor protection, BrokerCheck can be unforgiving. Even complaints that were dismissed, withdrawn, or settled without an admission of fault can remain on a professional’s record indefinitely. This can lead to:

• Loss of clients

• Inability to switch firms

• Missed promotions or opportunities

• Heightened regulatory scrutiny

• Reputational damage that lingers for years

One misunderstood or incorrect disclosure can cast a long shadow over an otherwise unblemished career. That’s why FINRA Expungement is not just helpful—it’s essential for many professionals looking to protect their livelihood.

What Is FINRA Expungement?

At its core, FINRA Expungement is the process of removing inaccurate, meritless, or false information from a financial professional’s Central Registration Depository (CRD) record. This information is also reflected on BrokerCheck, which is accessible to the public, employers, and regulators.

Expungement is typically sought when a professional is wrongly accused of misconduct or named in a customer complaint in which they played no role. FINRA has established a stringent framework—specifically Rule 2080—under which expungement may be granted, but only under certain conditions.

When Is Expungement Granted?

According to FINRA Rule 2080, expungement is appropriate only if one or more of the following standards are met:

1. The claim, allegation, or information is factually impossible or clearly erroneous

2. The registered person was not involved in the alleged investment-related misconduct

3. The claim, allegation, or information is false

This high bar ensures that expungement is only granted in deserving cases—but it also means that skilled legal representation is crucial.

The Expungement Process: Step by Step

FINRA Expungement is not automatic. It is a legal process that requires navigating arbitration, potential court involvement, and FINRA’s internal review. Here’s how it works:

1. Filing for Arbitration

The professional—or their attorney—files a claim with FINRA or another arbitration forum, such as the American Arbitration Association (AAA), requesting expungement.

2. Arbitration Hearing

At the hearing, the petitioner must present convincing evidence that the disclosure meets one of the Rule 2080 criteria. Arbitrators must provide a written explanation for any expungement recommendation.

3. Arbitration Award

If successful, the arbitration panel issues a written award recommending expungement.

4. Court Confirmation

Most expungement awards require confirmation in a court of competent jurisdiction before FINRA will act. This judicial step reinforces the validity of the arbitration decision.

5. FINRA Review and Record Update

Once the court confirms the award, FINRA processes the expungement and removes the item from the CRD and BrokerCheck.

This multi-step journey is fraught with legal complexity, making it essential to work with attorneys who understand both securities law and arbitration procedures.

Why Choose Bakhtiari & Harrison?

Bakhtiari & Harrison is an elite law firm representing individuals and institutions in securities arbitration and litigation before FINRA, AAA, and in state and federal courts. Their “AV” rating—the highest available—reflects their unwavering commitment to legal excellence and ethical standards.

What They Offer:

• Specialized Expertise: The firm focuses on representing financial professionals in employment disputes, regulatory investigations, and expungement claims. Their deep familiarity with FINRA rules and arbitration strategy gives clients a clear advantage.

• Comprehensive Representation: From initial arbitration filings to court confirmation, Bakhtiari & Harrison handles every phase of the expungement process with precision.

• Tailored Strategies: No two cases are the same. The firm takes the time to understand the facts, evaluate the merits, and craft a legal approach that aligns with each client’s goals.

• Proven Results: With years of success in high-stakes disputes, the firm has earned the trust of financial professionals across the country who rely on them to protect their careers.

Real-World Impact: When Expungement Changes Lives

For many professionals, expungement is not just about clearing a record—it’s about restoring a reputation and rebuilding a career.

Imagine a scenario where a broker is named in a customer complaint simply because they worked at the same firm, despite having no involvement. Or a case where a complaint was resolved quickly and quietly to avoid litigation costs, not because any misconduct occurred.

In these situations, the damage isn’t just unfair—it’s preventable. FINRA Expungement offers a legitimate and structured path to correct the record and reclaim control over one’s professional story.

A System Worth Protecting—and Improving

While FINRA Expungement is an indispensable remedy, it’s not without challenges. Critics point to:

• The complexity and cost of the process

• Inconsistencies in arbitration outcomes

• Limited access to legal support for early-career professionals

There’s increasing momentum for reform, with some industry voices calling for a more streamlined, consistent, and accessible expungement process.

In the meantime, professionals must take charge of their own narratives—and that starts with understanding their rights and working with the right advocates.

Conclusion: Your Record, Your Reputation, Your Future

In an industry built on trust, your professional record is everything. But when that record includes unfair or false allegations, it can become a career-threatening liability.

FINRA Expungement exists to correct the record and ensure that your reputation reflects the truth. But the process is not one to take lightly—it demands legal expertise, strategic thinking, and a deep understanding of how the system works.

Bakhtiari & Harrison stands at the forefront of this vital legal arena. Their commitment to defending financial professionals, restoring reputations, and navigating complex legal terrain makes them a powerful ally in your corner.

As the industry continues to evolve, one thing remains constant: the value of a clean, accurate, and honest professional record. For those seeking to protect that value, the time to act is now.