SEC Tightens Rule on Cleansing Broker Records

Brokers will not longer be able to have complaints expunged from their industry records so easily anymore. The SEC amended a rule banning the practice of settlement that is conditional on an agreement by the victim not to oppose expungement of the case. Investors and their legal counsels over the years have become furious with the high amount of expungements awarded because brokers who have caused losses often got off with a clean slate. The arbitration process which has been under intense scrutiny in the past few years will continue to be reviewed by both the SEC and FINRA.

Read More


Creative Commons Creative Commons Attribution-No Derivative Works 2.0 Generic License   Photo by  Schwar