Regulatory Notice 14-31

SEC Approves FINRA Rule 2081 Regarding Prohibited Conditions Relating to Expungement of Customer Dispute Information

Effective Date: July 30, 2014

 

Executive Summary

The SEC has approved FINRA Rule 2081 (Prohibited Conditions Relating to Expungement of Customer Dispute Information) to prohibit member firms and associated persons from conditioning or seeking to condition settlement of a dispute with a customer on, or to otherwise compensate the customer for, the customer’s agreement to consent to, or not to oppose, the firm’s or associated person’s request to expunge such customer dispute information from the Central Registration Depository (CRD®). The rule is effective immediately.

 

The text of Rule 2081 is set forth in Attachment A.

 

Questions concerning this Notice should be directed to:

  • Victoria L. Crane, Associate General Counsel, Office of General Counsel, at (202) 728-8104; or
  • Mignon McLemore, Assistant Chief Counsel, Dispute Resolution, at (202) 728-8151.