Principal Considerations In Determining Sanctions

Monetary Sanction

Suspension, Bar, Or Other Sanctions

See Principal Considerations In Introductory Section

1. Whether respondent has paid any portion of the arbitration award.

2. Whether respondent has made a good-faith attempt to satisfy the award in whole or in part. Consider the promptness of any such good-faith effort.

3. Whether respondent negotiated a settlement or payment schedule with the arbitration claimant and then failed to abide by the terms of the agreement.

Failure to Honor

Fine of at least $5,000.

In egregious cases, consider incorporating a daily escalator into the fine amount.

 
Failure to Honor In A Timely Manner

Fine of at least $2,500

Failure to Honor

Suspend the respondent in all capacities until the respondent satisfies the arbitration award (by payment or fully paid settlement) plus at least 30 additional business days. In egregious cases, consider a bar.

Failure to Honor In A Timely Manner

Suspend respondent in all capacities for up to five business days.

¹ In addition, NASD Procedural Rule 9511(a)(2)(A) indicates that FINRA also may suspend or cancel the membership of a member or the registration of a person for failure to honor an arbitration award or settlement agreement related to an arbitration or mediation under Article V, Section 3 of the NASD By-Laws. This guideline also is appropriate for violations of MSRB Rule G-35.