SEC Approves FINRA Rule to Prohibit Conditioning Settlements on Expungement

Washington - The Financial Industry Regulatory Authority (FINRA) announced that the Securities and Exchange Commission (SEC) has approved a new rule prohibiting firms and registered representatives from conditioning settlement of a customer dispute on—or otherwise compensating a customer for—the customer's agreement to consent to, or not to oppose, the firm's or representative's request to expunge such information from the Central Registration Depository (CRD™) system.