Expungement Training (Part II)

This mandatory online course provides guidance on expungement procedures outlined in Code of Arbitration Procedure Rules 12805 and 13805, as well as FINRA Rule 2080.

 

When a broker is named as a respondent in a customer-initiated arbitration proceeding, that fact is required to be reported on the registered person's Form U4. And once reported, it is added to the broker's Central Registration Depository (CRD) record. If the arbitration claim against the broker is denied by the arbitrators, the broker may seek to have any reference to the arbitration removed or expunged from his or her CRD record.

 

The Expungement training explains the role of CRD, provides an overview of the expungement process and gives an in-depth review of FINRA Rule 2080 and Code of Arbitration Procedure Rules 12805 and 13805 to ensure that arbitrators follow all procedural requirements before ordering expungement of a broker's CRD record.

 

Arbitrators must successfully complete the course and examination. The exam consists of 10 true/false questions, and a grade of 80 percent (8 correct answers) is required to pass the course. The course takes approximately one and a half hours to complete, and can be done over a period of 30 days from the date of registration.

 

To register for this course, access FINRA's Learning Management System, select the Course Catalog tab and click on the green plus sign next to the course title.

 

View the Registration and Access Instructions for additional help.