If a financial advisor obtains an expungement award, will the CRD disclosure be removed immediately?

In most cases, the CRD disclosure will not be immediately removed after obtaining an expungement award. A court of competent jurisdiction must confirm arbitration awards directing expungement before FINRA will expunge customer dispute information or Form U-5 termination language from the CRD system. However, FINRA currently will take action on, without a court order, expungement directives contained in arbitration awards rendered in disputes between registered representatives and firms in which the arbitration panel expressly states in the award that the expungement relief is being granted because of the defamatory nature of the information.

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