Financial Planning (October 28, 2023) By Brian Wallheimer
There are a lot of numbers bandied about when it comes to expungement. The biggest and most important might be the 90% rate at which brokers who apply see a blot wiped off their record.
The number is a travesty for groups like Public Investors Advocate Bar Association, which believes it's far too easy for a broker to shed an unwanted charge of malfeasance. But ask brokers and their supporters and they'll say that the high success rate shows that only those truly deserving of a clean(er) slate apply for the remedy.
Now PIABA is asking states to get into the game. Many of the expungement hearings don't include those who made the original allegations against brokers or their supporters. State securities officials can contest the expungements, which stands to either lessen the success rate or decrease the number of brokers who even try.
The flip side of that high success rate is the fact that the vast majority of brokers have clean records.
So, why does it matter? Because one bad apple spoils the bunch. If you're a squeaky clean broker who has earned a sterling reputation, the last thing you want is another broker to be unduly absolved of sins and look to be as on the level as you.
Below, stories about how this has all shaken out, including PIABA's latest efforts to end easy expungements. Thanks for reading.