Regulatory Notice 12-18

FINRA Requests Comment on Proposed New In re Expungement Procedures for Persons Not Named in a Customer-Initiated Arbitration


Comment Period Expired: May 21, 2012

Executive Summary

FINRA is requesting comment on proposed new rules that would permit persons who are the “subject of” allegations of sales practice violations made in arbitration claims, but who are not named as parties to the arbitration (unnamed persons), to seek expungement relief by initiating  In re expungement proceedings at the conclusion of the underlying customer-initiated arbitration case. These allegations must be reported in the same way that customer complaints are reported—to the Central Registration Depository (CRD®) system on Forms U4 or U5. Currently, the Code of Arbitration Procedure for Customer Disputes (Customer Code) and the Code of Arbitration Procedure for Industry Disputes (Industry Code) (together, Codes) do not provide unnamed persons with express procedures to seek expungement of these types of allegations.


FINRA believes the proposed In re expungement rules and accompanying forms provide unnamed persons with a remedy to seek redress concerning allegations that could impact their livelihoods, yet maintain the protections of FINRA’s expungement rules to ensure the integrity of the CRD records, on which the investing public relies.


The text of the following proposed rules can be found at

  • Rule 12100(z) (Unnamed Person);
  • Rule 12806 (Expungement of Customer Dispute Information by  Persons Named as Parties);
  • Rule 13100(cc) (Unnamed Person);
  • Rule 13806 (Expungement of Customer Dispute Information by  Persons Named as Parties); and
  • Rule 13807 (Expungement of Customer Dispute Information by   an Unnamed Person).

The proposed Notice of Intent to File an In re Expungement Claim (Notice of Intent to File) and Submission Agreement for In re Expungement Claims (In re Submission Agreement) forms are set forth as Attachments A and B, respectively.


Questions concerning this Notice should be directed to:

  • Kenneth L. Andrichik, Senior Vice President, Chief Counsel and Director of Mediation and Strategy, Dispute Resolution, at (212) 858-3915 or email; or
  • Mignon McLemore, Assistant Chief Counsel, Dispute Resolution, at (202) 728-8151 or email.
View Full Notice PDF 183 KB

The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.

Comments By Date Received
Seth E. Lipner (PDF 13 KB) 4/9/2012
Mike Reinhardt (PDF 38 KB) 4/10/2012
Judy & Charles Eisenhardt (PDF 40 KB) 4/10/2012
Lawrence M. Green (PDF 20 KB) 4/13/2012
Davidson & Grannum, LLP (PDF 212 KB) 4/16/2012
NPB Financial Group, LLC (PDF 37 KB) 4/25/2012
ARM (PDF 41 KB) 5/1/2012
Marlyn McClaskey (PDF 10 KB) 5/1/2012
Kaufmann Gildin Robbins & Oppenheim LLP (PDF 428 KB) 5/7/2012
Keystone Capital Corp. (PDF 289 KB) 5/10/2012
St. John’s University School of Law (PDF 166 KB) 5/10/2012
Woodforest Financial Services, Inc. (PDF 95 KB) 5/16/2012
PIABA (PDF 413 KB) 5/18/2012
Richard A. Stephens (PDF 632 KB) 5/18/2012
REISA (PDF 393 KB) 5/21/2012
SIFMA (PDF 85 KB) 5/21/2012
Financial Services Institute (PDF 82 KB) 5/21/2012
NASAA (PDF 148 KB) 5/21/2012
Sutherland Asbill & Brennan LLP (PDF 215 KB) 5/21/2012
Wells Fargo Advisors (PDF 126 KB) 5/21/2012
Dobin Law Group, P.A. (PDF 59 KB) 5/21/2012
Barry D. Estell (PDF 16 KB) 5/21/2012
Regal Bay Investment Group LLC (PDF 15 KB) 5/21/2012
Herbert E. Pounds, Jr., P.C. (PDF 15 KB) 5/21/2012
Law Office of Richard M. Layne (PDF 135 KB) 5/21/2012
Bingham & Lea, PC (PDF 37 KB) 5/21/2012
Morgan Keegan & Co., Inc. (PDF 86 KB) 5/21/2012