FINRA U5 CRD Expungement: We Have Two Winners!

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Apr 1, 2010 7:20 am
  FINRA U5 CRD Expungement: We Have Two Winners!!Written: April 1, 2010

What's the point? Why should I even waste my time and money? The FINRA Arbitration process is stacked against the individual RR? -- So goes what passes for common wisdom.  As with so much industry lore, it ain't always right and if you invest too much credibility in such water-cooler lawyering, you may regret it.

Without question, it's tough for an individual RR to prevail in any FINRA Arbitration, be that a customer or intra-industry dispute.  However, "tough" doesn't mean impossible and sometimes you just have to suck it up, put your head down, and be prepared to run through walls in order to preserve your rights and reputation. 

Consider these two recent expungement cases brought by two lowly brokers -- one against a household name (Merrill Lynch) and the other against one of the industry's smaller players.  The Merrill case reached for a $100 million moon; the other stooped for the relatively small change of $100.  However, don't be mislead by the monetary damages that the Claimants sought.  The more valuable prize here -- their reputations -- were at stake, and if the holy grail of a Form U5 expungement was the goal, then both registered representatives won.