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. Titlesort descending Type
Nov 11, 2009 2007007255603 Order Following Final Pre-Hearing Conference and Granting, in Part, Enforcement's Motion to Preclude Testimony and Exhibits Disciplinary Order
Apr 25, 2006 CLG050021 Order Following Final Pre-Hearing Conference and Ruling on Motions in Limine Disciplinary Order
Oct 31, 2006 2005000127502 Order Following Final Pre-Hearing Conference Modifying Order Precluding Respondents from Introducing Evidence at the Hearing and Dismissing the Third Cause of Complaint Disciplinary Order
Nov 9, 2006 EAF0300770001 Order For Sequestration of Witnesses Disciplinary Order
Oct 26, 1998 C3A980027 Order Granting Complainant's Motion for Leave to Offer Telephone Testimony Disciplinary Order
Oct 5, 2000 C05000021 Order Granting Complainant's Motion for Leave to Offer Telephone Testimony and to Allow Witness to be Assisted by (Remote) Interpreter Disciplinary Order
Aug 31, 2001 C9A010011 Order Granting Complainant's Motion for Partial Summary Disposition Disciplinary Order
Apr 25, 2005 C07040084 Order Granting Complainant's Motion for Telephone Testimony Disciplinary Order
Apr 8, 2003 CAF020023 Order Granting Complainant's Motion in Limine Disciplinary Order
Dec 28, 2006 E8A2003084806 Order Granting Complainant's Motion in Limine Disciplinary Order
Apr 20, 2001 C10010004 Order Granting Complainant's Motion to Amend the Complaint; Denying Complainant's Motion for Leave to File a Reply to Respondent's Opposition to Motion to Amend; and Denying Respondent's Motion to Sever Disciplinary Order
Feb 8, 2002 EQS010002 Order Granting Complainant's Motion To Dismiss Disciplinary Order
Mar 18, 2015 DFC140002 Order Granting Complainant's Motion to Dismiss Hearing Request Expedited Order
May 23, 2001 CAF000013 Order Granting Complainant's Motion to Preclude the Introduction of Expert Testimony Disciplinary Order
Aug 27, 1999 C02980024 Order Granting Complainant's Motion to Strike Disciplinary Order
Dec 28, 2006 2005001819101 Order Granting Complainant's Motion to Strike in Part the Introduction to Respondent's Answer Disciplinary Order
May 31, 2006 CAF030007 Order Granting Complainant's Motion to Withdraw the Complaint, with Prejudice Disciplinary Order
May 5, 2006 CAF030007 Order Granting Complainant's Motion to Withdraw the Complaint, with Prejudice Disciplinary Order
Mar 18, 2015 DFC140002 Order Granting Complainant’s Motion to Dismiss Hearing Request Disciplinary Order
Dec 3, 2015 ARB150048 Order Granting Complaint’s Motion for an Order Pursuant to Rule 9559(m) and Deeming September 15, 2015 Notice of Suspension Final FINRA Action Expedited Order
Jan 27, 1998 C3A970067 Order Granting Department of Enforcement's Motion for Telephone Testimony Disciplinary Order
Jan 27, 1998 CAF970011 Order Granting Department of Enforcement's Motion to Amend the Complaint Disciplinary Order
Apr 4, 2008 2005003437102 Order Granting Department of Enforcement's Motion to Strike Respondent's Unclean Hands Affirmative Defense Disciplinary Order
Feb 3, 2015 2011025706401 Order Granting Department of Enforcement’s Motion for Leave to Offer Expert Testimony Disciplinary Order
Jul 6, 2012 2010024889501 Order Granting Department of Enforcement’s Motion Regarding Sequestration of FINRA Staff Witnesses Disciplinary Order

Pages