Deleting misconduct: The expungement of BrokerCheck records

@article{Honigsberg2020DeletingMT,
  title={Deleting misconduct: The expungement of BrokerCheck records},
  author={Colleen Honigsberg and Matthew Jacob},
  journal={Journal of Financial Economics},
  year={2020}
}
Abstract We examine a controversial process, known as expungement, which allows brokers to remove evidence of financial misconduct from public records. From 2007 to 2016, we identify 6,660 expungement requests, suggesting that brokers attempt to expunge 12% of the allegations of misconduct reported by customers and firms. When these requests are adjudicated on the merits, arbitrators approve expungement 84% of the time. We show that expungements significantly predict future misconduct; brokers… Expand
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