FINRA Issues "Expanded Expungement Guidance" To Arbitrators And Parties
Contact: Mark D. Knoll; Bressler, Amery & Ross, P.C. (New Jersey, USA)
On October 14, 2013, FINRA Dispute Resolution ("FINRA DR") issued a "Notice to Arbitrators and Parties on Expanded Expungement Guidance" that FINRA DR mandated arbitrators to read prior to considering expungement requests. The Expanded Expungement Guidance ("EEG") signals a push by FINRA DR to have arbitrators give closer scrutiny to, and more detailed explanations for, grants of expungement relief. However, the Expanded Expungement Guidance may go too far in grafting onto the relevant expungement rules and procedures additional conditions and requirements that are not in the plain text of the existing rules. Thus, arbitration practitioners should be cognizant of the increased scrutiny expungement applications will face going forward, but at the same time they should continue to press arbitration panels and FINRA DR to apply the expungement rules as they are written.
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