Adjudication and Decisions

When FINRA determines that violations of securities rules have occurred and formal disciplinary action is necessary, the Enforcement Department or Market Regulation Department files a complaint with the Office of Hearing Officers (OHO).

The Office arranges a three-person panel to hear the case. The panel is chaired by a hearing officer who is an employee of the Office of Hearing Officers. The Chief Hearing Officer appoints two industry panelists, drawn primarily from a pool of current and former securities industry members of FINRA’s District Committees, as well as its Market Regulation Committee, former members of FINRA’s National Adjudicatory Council (NAC) and former FINRA Governors.

At the hearing, the parties present evidence for the panel to determine whether a firm or individual has engaged in conduct that violates FINRA rules, SEC regulations or federal securities laws. In reaching its decision, the hearing panel also considers previous court, SEC, and NAC decisions to determine if violations occurred. The NAC is the national committee which reviews initial decisions rendered in FINRA disciplinary and membership proceedings.

For each case, the hearing panel will issue a written decision explaining the reasons for its ruling and consult the FINRA Sanction Guidelines to determine the appropriate sanctions if violations have occurred. FINRA also, when feasible and appropriate, can order firms and individuals to make restitution to harmed customers.

Appeals Process

Under FINRA’s disciplinary procedures, a firm or individual has the right to appeal a hearing panel decision to the NAC, or the NAC may on its own initiate a review of a decision. On appeal, the NAC will determine if a hearing panel’s findings were legally correct, factually supported and consistent with FINRA’s Sanction Guidelines. While a panel decision is on appeal, the sanction is not enforced against the firm or individual.

Unless FINRA’s Board of Governors decides to review the NAC’s appellate decision, that decision represents FINRA’s final action. A firm or individual can appeal FINRA’s decision to the SEC and then to federal court.

Date of Decision Proceeding No. Title Deciding Body Type Order No.
Oct 2, 2014 20130379350 Bering Strait Securities, Inc. National Adjudicatory Council (NAC) Membership Decision
Apr 15, 2011 20100226181 NAC Redacted Membership Decision 20100226181 National Adjudicatory Council (NAC) Membership Decision
Nov 30, 2010 20090196759 NAC Redacted Membership Decision 20090196759 National Adjudicatory Council (NAC) Membership Decision
Sep 28, 2010 20090182345 In the Matter of the New Membership Application of Firm A National Adjudicatory Council (NAC) Membership Decision
Aug 18, 2010 20090173549 In the Matter of the Membership Continuance Application of Applicant Firm A National Adjudicatory Council (NAC) Membership Decision
Jul 31, 2007 20060058633 NAC Redacted Membership Decision 20060058633 National Adjudicatory Council (NAC) Membership Decision
Aug 10, 2006 A8A050063 Homeland Securities Financial Services Group, Inc. National Adjudicatory Council (NAC) Membership Decision