13806. Panel to Decide Requests for Expungement of Customer Dispute Information Filed by an Associated Person under Rule 13805
(a) Applicability
This Rule applies to claims that request expungement of customer dispute information filed by an associated person against a member firm, pursuant to Rule 13805. Except as otherwise provided in this Rule, all provisions of the Code apply to such claims.
(b) Selection of Panel
(1) The list selection algorithm shall randomly select three public arbitrators who are eligible for the chairperson roster and have the additional qualifications described in Rule 13806(b)(2) to decide a request for expungement of customer dispute information from the CRD system filed by an associated person pursuant to Rule 13805. The parties shall not be permitted to stipulate to the use of pre-selected arbitrators.
(2) Each arbitrator selected for the panel must have fully met the following additional qualifications:
(A) evidenced successful completion of, and agreement with, enhanced expungement training provided by FINRA Dispute Resolution Services; and
(B) service as an arbitrator through award on at least four customer-initiated arbitrations administered by FINRA Dispute Resolution Services pursuant to the Rule 12000 Series or another self-regulatory organization, in which a hearing was held, except a hearing pursuant to Rule 12800(c)(3)(B).
(3) The first arbitrator selected by the list selection algorithm shall be the chairperson of the panel.
(4) The parties requesting expungement of customer dispute information shall not be permitted to strike any arbitrators selected by the list selection algorithm nor stipulate to their removal, but shall be permitted to challenge any arbitrator selected for cause pursuant to Rule 13410. If an arbitrator is removed, the list selection algorithm shall randomly select a replacement.
(5) Notwithstanding Rules 13401(b) and (c), the parties shall not be permitted to stipulate to fewer than three arbitrators on the panel to hear the expungement request.
| Adopted by SR-FINRA-2022-024 eff. Oct. 16, 2023. Selected Notices: 23-12. |
- Regulatory Notice 17-42December 06, 2017
- Regulatory Notice 09-48August 14, 2009