What steps should a respondent in an arbitration proceeding take to seek expungement under Rule 2080?
In brief, a party seeking expungement in an arbitration proceeding should request expungement, preferably in his or her answer, counterclaim or statement of claim. The arbitrators will decide whether to grant a request for expungement on the basis of one or more of the three standards specified in Rule 2080. In addition, FINRA’s Code of Arbitration Procedure for Customer Disputes and Code of Arbitration Procedure for Industry Disputes (collectively, the “Arbitration Code”) contains special procedural requirements relating to requests to expunge customer dispute information, including that arbitrators hold a recorded in-person or telephonic hearing, review settlement documents and consider the amount of payments made to any party and any other terms and conditions of settlement. If the arbitrators grant expungement relief, the Arbitration Code also requires that they briefly explain in the award the factual basis(es) for finding that expungement is appropriate under one or more of the R
