Effective January 26, 2009, FINRA will implement new procedures for arbitrators to follow when considering requests for expungement relief under Rule 2080. The SEC approved new Rule 12805 of the Code of Arbitration Procedure for Customer Disputes and new Rule 13805 of the Code of Arbitration Procedure for Industry Disputes.

FINRA has adopted Rules 12805 and 13805 to establish procedures that arbitrators must follow before ordering expungement of information related to arbitration cases from an associated person’s Central Registration Depository (CRD) record.

The new procedures will ensure that expungement occurs only when the arbitrators find and document one of the narrow grounds specified in Rule 2080.