FINRA Expungement Attorneys — Bakhtiari & Harrison

Who qualifies for FINRA expungement

Under FINRA Rule 2080, expungement may be granted when a customer dispute on a broker’s CRD record meets one of three standards:

• The claim, allegation, or information is factually impossible or clearly erroneous
• The registered person was not involved in the alleged investment-related sales practice violation
• The claim, allegation, or information is false

Expungement is not available simply because a complaint was settled, dismissed, or closed without action. The standard is demanding — the registered person must affirmatively prove their case to an arbitration panel. Having experienced legal counsel is critical to meeting this burden.

Brokers have only one opportunity to seek expungement for a specific complaint. If the expungement is denied — or if a procedural misstep causes the case to be dismissed — the door may close permanently. That single-chance reality makes preparation and legal strategy the most important factors in any expungement proceeding.

FINRA’s 2023 expungement rule changes — what financial professionals need to know

In 2023, FINRA implemented significant rule changes that made the expungement process more demanding for registered representatives. The key changes include:

• Three-arbitrator panels required: All expungement proceedings now require a panel of three specially trained arbitrators drawn from a roster of arbitrators with specific expungement experience. This replaced the prior practice of using a single arbitrator for many expungement cases.
• Shorter filing deadline: Expungement requests must now be filed within three years of the close of the underlying customer arbitration or civil litigation. For straight-in expungement requests — where no customer claim was filed — the deadline is three years from when the broker learned of the CRD disclosure.
• Stricter standard of review: Arbitrators are now required to apply heightened scrutiny and document their factual findings more specifically. Awards that do not include detailed factual findings supporting one of the three Rule 2080 standards are less likely to be confirmed by courts.
• Customer notification required: FINRA must notify the customer who filed the original complaint of the expungement request. The customer has the right to participate in the hearing and oppose expungement.

These changes make it more important than ever to retain experienced expungement counsel who understands both the new procedural requirements and how to present a compelling case to a three-arbitrator panel.

The FINRA expungement process — step by step

1. Evaluate eligibility. Bakhtiari & Harrison reviews the CRD disclosure, the underlying facts, and available evidence to assess whether the complaint meets one of the three legal standards under Rule 2080 and whether the filing deadline has passed.
2. File a FINRA Statement of Claim. The broker files a Statement of Claim with FINRA’s Dispute Resolution Services initiating the expungement arbitration. Under the 2023 rules, FINRA notifies the customer who filed the original complaint.
3. FINRA appoints a three-arbitrator panel. All expungement proceedings now require three specially trained arbitrators drawn from FINRA’s dedicated expungement arbitrator roster.
4. Pre-hearing preparation. Both sides exchange relevant documents. Bakhtiari & Harrison prepares the evidentiary record — trade confirmations, account statements, correspondence, supervisory records, and supporting declarations — to establish the factual basis for expungement under Rule 2080.
5. Arbitration hearing. The broker presents evidence that the customer complaint meets the expungement standard. The panel evaluates the facts and issues a written award with specific factual findings. If the customer participates, the firm responds to their arguments.
6. Court confirmation. If the panel awards expungement, the broker must obtain a court order confirming the arbitration award before FINRA will remove the CRD entry. Bakhtiari & Harrison handles the court filing.
7. CRD record updated. Once FINRA receives the court confirmation order, the disclosure is removed from the CRD and will no longer appear on BrokerCheck.

How long does FINRA expungement take?

The full expungement process — from filing through CRD removal — typically takes 9 to 18 months. The arbitration phase itself generally takes 6 to 12 months from filing to award. The court confirmation step adds approximately 2 to 4 months. Total timelines vary based on FINRA panel scheduling, case complexity, and the court docket in the relevant jurisdiction.

The three-year filing deadline under the 2023 rules makes timing critical. Financial professionals who are considering expungement should consult counsel promptly — even if the underlying complaint was resolved years ago — to ensure the deadline has not passed.

FINRA expungement cost

The total cost of a FINRA expungement proceeding includes three components:

• FINRA filing and arbitrator fees: FINRA charges a filing fee and arbitrator compensation fees. Under the current fee schedule, these typically total several thousand dollars depending on the number of sessions required.
• Attorney fees: Bakhtiari & Harrison handles expungement cases on a flat fee or hourly basis depending on the complexity of the matter and whether the customer is expected to contest the proceeding. Contested expungements — where the customer participates and opposes expungement — require more preparation and are priced accordingly.
• Court confirmation costs: The court confirmation step requires a separate legal filing and associated court costs. Bakhtiari & Harrison handles this step as part of its expungement representation.

Total all-in costs for a straightforward uncontested expungement typically range from $8,000 to $15,000. Contested proceedings involving customer participation or complex factual disputes may cost more. All fees are discussed in detail at the initial consultation before any engagement.

Why choose Bakhtiari & Harrison for FINRA expungement

• FINRA rulemaking experience. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee — the body that wrote the rules governing expungement proceedings, including the 2023 rule changes. This is not a credential most expungement attorneys can claim. Understanding why the rules were written the way they were — and how panels interpret them — is a direct strategic advantage.
• Proven expungement results. David Harrison has won significant expungement proceedings including against Merrill Lynch Pierce Fenner & Smith. The firm represents financial professionals in both uncontested and contested expungement proceedings nationwide.
• Inside knowledge of brokerage firm defenses. David Harrison spent years as in-house counsel at Morgan Stanley Dean Witter. When a major broker-dealer opposes expungement, the firm understands exactly how they build their arguments — and how to defeat them.
• Full-service representation. Bakhtiari & Harrison handles the complete expungement process — from initial evaluation through FINRA arbitration hearing, court confirmation, and CRD removal. Financial professionals do not need to coordinate with multiple attorneys.
• Nationwide representation. The firm represents financial professionals in expungement proceedings throughout the United States. Ryan Bakhtiari is admitted in California, New York, Texas, the District of Columbia, and multiple federal courts.

Related financial professional matters

Bakhtiari & Harrison also represents financial professionals in compensation disputes and promissory note defense, employment disputes, outside business activity matters, U4 and U5 matters, and regulatory defense. For a full overview of the firm’s financial professional practice, visit the Registered Persons page.

Frequently asked questions — FINRA expungement

Can I seek expungement if my customer complaint was settled?

Yes — settlement of the underlying customer complaint does not bar expungement. However, if the settlement included a release of the broker’s right to seek expungement, that release may affect eligibility. The 2023 rule changes also impose a three-year filing deadline from the close of the underlying proceeding, so financial professionals should consult counsel promptly after a settlement to preserve their expungement options.

What happens if the customer contests my expungement?

Under FINRA’s 2023 rules, FINRA notifies the customer of the expungement request and the customer has the right to participate in the hearing. If the customer contests, the proceeding becomes more complex — both sides present evidence and arguments to the arbitration panel. Bakhtiari & Harrison has experience in contested expungement proceedings, including against major broker-dealers who oppose expungement on behalf of customers.

Will expungement remove the complaint from BrokerCheck entirely?

Yes. Once the court confirmation order is received by FINRA, the disclosure is removed from the CRD and will no longer appear on FINRA BrokerCheck. The record is not simply marked as expunged — it is removed. This means the complaint will not appear in background checks conducted by prospective employers, clients, or regulators.

How does the three-year filing deadline work under the 2023 rules?

Under FINRA’s 2023 expungement rule changes, a financial professional must file an expungement request within three years of the close of the customer arbitration or civil litigation in which the customer complaint arose. For straight-in expungement requests — where no customer claim was filed — the deadline runs from when the broker first knew or should have known of the CRD disclosure. Missing this deadline may permanently close the opportunity for expungement. Contact Bakhtiari & Harrison promptly if you are approaching this window.

Does Bakhtiari & Harrison handle expungement cases outside California?

Yes. Bakhtiari & Harrison represents financial professionals in FINRA expungement proceedings throughout the United States. Ryan Bakhtiari is admitted in California, New York, Texas, the District of Columbia, and multiple federal courts. FINRA expungement hearings are held at a FINRA regional hearing location near the claimant, so geography is not a barrier to representation.

Contact a FINRA expungement attorney — free consultation

If you have a meritless customer complaint on your CRD record, contact Bakhtiari & Harrison for a free, confidential consultation. The firm evaluates all expungement matters at no charge and advises on eligibility, timeline, cost, and likelihood of success before any engagement. Our FINRA expungement attorneys represent financial professionals nationwide.

Expungement cases are handled on a flat fee or hourly basis. Initial consultations are free.

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