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Expungement Training (Module 16)

The final module of the Basic Arbitrator Training Program covers the expungement process. The Expungement Training is mandatory and has a separate, required assessment. This 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. Once the information is 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 assessment. The assessment 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 hour to complete.

The Expungement Training is the last module of the Basic Arbitrator Training Program. After completing the Basic Arbitrator Training and assessment, you may proceed to the final module on expungement. To register for the Basic Arbitrator Training Program, go to FINRA's Learning Management System. The site will automatically register you for the Basic Arbitrator Training Program. For other courses, go to the Learning Catalog and select the course you wish to take. It will be added to the My Plan page.

View the Registration and Access Instructions for additional help.