The NASDR in January put in place a policy making it more difficult for brokers to get information off of their disciplinary records. Arbitrator-ordered expungements of information from the Central Registration Depository (CRD) must now be confirmed by a court before the NASD will remove anything. The new policy applies to customer cases only.
In broker-firm disputes, arbitrators can still have information removed or changed.
State regulators have been critical of the prior practice whereby firms would settle a customer claim, but only if the customer and arbitrators would agree not to name the broker in the dispute. That strategy effectively kept the settlement from public view since settlements are not reported on firms CRD records.
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