FINRA's board of governors on Thursday approved a rule proposal that would impose new limits on financial advisors' ability to remove information about customer disputes from BrokerCheck, the regulator's online portal where investors can find information about a registrant's legal, regulatory and disciplinary history.

Under the proposed rule, firms and their associates would be barred from reaching settlements with customers who are conditioned on the agreement not to oppose a broker's request to expunge information from FINRA's Central Registration Depository, the database that feeds information to BrokerCheck.

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