Can a broker in California get FINRA expungement?

Yes. California brokers and registered representatives have the same right to seek FINRA expungement as professionals in any other state. FINRA expungement hearings for California-based brokers are typically held at FINRA's Los Angeles hearing office. Bakhtiari & Harrison is headquartered in Los Angeles and regularly represents California financial professionals in FINRA expungement proceedings.

FINRA Expungement Attorneys │ Bakhtiari & Harrison

FINRA expungement is the formal process for removing a meritless customer dispute disclosure from a broker’s Central Registration Depository (CRD) record, which is publicly visible on FINRA BrokerCheck. Expungement requires a FINRA arbitration hearing and is only granted when a panel finds the claim was factually impossible, clearly erroneous, or false. The process typically takes 9 to 18 months from filing through CRD removal. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee — the body that wrote the rules governing expungement proceedings. Partner David Harrison has won U4/U5 expungement cases including against Merrill Lynch Pierce Fenner & Smith. Cases are handled on a flat fee or hourly basis. Initial consultations are free.

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, and the process requires experienced legal representation to navigate successfully.

The FINRA expungement process — step by step

Evaluate eligibility. An experienced FINRA expungement attorney reviews the CRD disclosure, the underlying facts, and available evidence to assess whether the claim meets one of the three legal standards under Rule 2080.
File a FINRA arbitration claim. The broker files a Statement of Claim with FINRA’s Dispute Resolution Services initiating the expungement arbitration. The claimant and the customer who filed the original complaint are the primary parties.
FINRA appoints a three-person arbitration panel. FINRA’s 2023 rule changes require a panel of three arbitrators for all expungement proceedings.
Arbitration hearing. The broker presents evidence that the customer complaint meets the expungement standard. The arbitration panel evaluates the facts and issues a written award.
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. This step requires a separate court filing.
CRD record updated. Once the court confirmation order is received by FINRA, 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 takes 6 to 12 months. The court confirmation step adds additional time, typically 2 to 4 months. Total timelines vary based on FINRA panel scheduling and court docket.

FINRA expungement cost

The cost of FINRA expungement includes FINRA filing fees, arbitrator compensation fees, and attorney fees. FINRA’s own fees for expungement proceedings range from several hundred to several thousand dollars. Attorney fees vary by firm and case complexity — most expungement cases are handled on a flat fee or hourly basis. Total all-in costs typically range from $8,000 to $25,000 depending on the complexity of the case and whether the customer contests the expungement.

Why you need an experienced FINRA expungement attorney

Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee — the body that wrote the rules governing expungement proceedings. This is not a credential most expungement attorneys can claim. Understanding how FINRA arbitration panels evaluate expungement requests from the inside is a meaningful strategic advantage.

David Harrison has won many singifcant U4/U5 expungement cases. The firm handles expungement cases for financial professionals nationwide on a flat fee or hourly basis. Contact us at (800) 382-7969 for a free consultation.

Because the process is highly technical, experienced legal counsel is critical. A FINRA securities attorney will ensure your claim is properly filed, present a compelling case to arbitrators, and guide you through the court confirmation process. With the right guidance, you can maximize your chances of clearing your name and moving forward with a clean record. Missteps can be difficult to overcome, taking the right steps in protecting your name and regulatory record should be a significant concern for any registered person.

If you’re considering expungement, don’t navigate it alone. Professional support can make all the difference. Advisors generally have only one opportunity to seek expungement for a specific complaint. A misstep can mean the door closes permanently. If you have suffered from a false or erroneous customer complaint or other type of disclosure, contact Bakhtiari & Harrison to discuss your FINRA expungement options.