The Financial Industry Regulatory Authority (FINRA) has proposed a rule which would allow individuals who are not named as parties to a customer-initiated arbitration case to seek expungement relief by initiating “In re” expungement proceedings. Currently, unnamed persons do not have a prescribed way to seek these types of expungements, and must seek relief by:
- Asking their current or former firm that is a party to the arbitration to request expungement on their behalf;
- Seeking to intervene in the arbitration filed by the customer; or
- Initiating a new arbitration case in which the unnamed person requests expungement relief and names the customer or firm as respondent.
According to Regulatory Notice 12-8, “FINRA believes that the current options do not always adequately address a number of issues that can arise in connection with expungement requests.”