SEC Approves FINRA-Proposed Rule to Prohibit Conditioning Settlements on Expungement of Information from CRD (Fed. Reg.)

The SEC's approval of FINRA-proposed Rule 2081 regarding prohibited conditions relating to expungement of customer dispute information was published in the Federal Register.

The new FINRA Rule 2081 would prohibit a firm or registered representative from conditioning a settlement of a customer dispute on – or otherwise compensating a customer for – the customer's agreement to consent to, or to not oppose, the firm's or representative's request to expunge such information from the Central Registration Depository ("CRD") system. The prohibition would apply to both written and oral agreements, and the proposal would apply both to agreements entered into during the course of settlement negotiations, and to any agreements entered into separately from such negotiations.

See: 79 FR 43809; NASAA Statement of Support.Related news: SEC Approves FINRA Rule to Prohibit Conditioning Settlements on Expungement of Information from CRD(July 23, 2014).