Monday, August 27, 2018

CRD Expungement

The problems associated with FINRA‘s CRD Disclosure System are well known to financial professionals – the concept of disclosing every allegation, justified or not, against a registered person, to anyone who cared to ask, is unheard of in our system of justice. The addition of BrokerCheck, where the information is available to anyone with an Internet connection has made the situation intolerable.

For that reason, we are often asked to file an expungement request with FINRA, to remove unwarranted items from the CRD system, and I explain the process in a new article at the New York Securities Lawyer website.

The interests of investor protection overrode the concepts of fundamental fairness and due process for brokers, and today there is full disclosure of every wart, pimple and untrue allegation made against a broker. Not fair to the broker, but of a theoretical benefit to the investing public.

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Mark Astarita is a national known securities attorney and a partner in the securities law firm of Sallah Astarita & Cox, LLC. He can be reached by phone at 212-509-6544 or by email - mja@sallahlaw.com

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