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FINRA Rule 2081

Rule 2081 Prohibits Conditioning Settlement of a Customer Dispute on the Customer’s Agreement to Consent To, or Not to Oppose, Expungement:

 

This prohibition applies to: written and oral agreements and agreements entered into during settlement negotiations; an agreement that’s separate from the negotiations; and any settlements involving customer disputes – not only those related to arbitration claims.

 

The rule also prohibits any compensation to the customers following a settlement in return for not opposing an expungement request, as well as precludes bargaining for expungement as part of settlement negotiations, because a customer’s interest in compensation may outweigh public or regulatory interests.

 

The rule is intended to help ensure that negotiated agreements don’t influence arbitrator decisions to recommend expungement, thus helping to preserve the integrity of CRD information.