U.S. regulators have approved a rule change that will prohibit brokerage firms and reps from making settlements with customers contingent on the client agreeing that the information doesn’t appear on their record.

The Financial Industry Regulatory Authority (FINRA) said Wednesday that the U.S. Securities and Exchange Commission (SEC) has approved a new rule prohibiting firms and registered reps from making settlements of disputes with clients conditional on the client agreeing to, or agreeing not to oppose, their request to expunge the information from the Central Registration Depository (CRD) system.

The CRD system, which is the securities industry’s online registration and licensing system operated by FINRA, contains information regarding firms and registered reps, such as personal, registration and employment history, along with information on criminal matters, regulatory and disciplinary actions, civil actions, and information relating to customer complaints and disputes.

“This rule will prohibit firms and reps from conditioning settlements on a customer’s agreement not to oppose expungement, thus protecting the integrity of the CRD system and disclosure of material information to investors,” said Richard Ketchum, chairman and CEO of FINRA.

FINRA said that it will announce the effective date of the new rule in a regulatory notice, which will be published shortly.