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 18, 2005 CAF040058 Order Regarding Admissibility of Tape Recordings and Transcripts Disciplinary Order
Oct 5, 2005 CLG050049 Order Regarding Attendance of Wittnesses' Counsel at Hearing Disciplinary Order
Mar 19, 2003 C3A020039 Order Regarding Complainant's Motion for a Preclusion Order Disciplinary Order
Feb 13, 2001 C10000122 Order Regarding Complainant's Motion for a Preclusion Order Disciplinary Order
Sep 21, 1999 CAF980002 Order Regarding Court Reporting Services for the Hearing Disciplinary Order
Dec 9, 1997 C10970128 Order Regarding Department of Enforcements Contact with Respondent's Counsel Disciplinary Order
May 3, 2018 2014039775501 Order Regarding Enforcement’s Motion to Strike Respondent’s Witnesses and Exhibits and Respondent’s Motion to Strike Enforcement Exhibits Disciplinary Order
Nov 1, 2006 EAF0400300001 Order Regarding Hearing Procedures Disciplinary Order
Dec 26, 1997 CAF970001 Order Regarding Motion for Judgment on the Pleadings Disciplinary Order
Dec 20, 2017 2016047565702 Order Regarding Motion for Order Directing Zipper to File a Proper Answer Disciplinary Order
Dec 20, 2017 2016047565702 Order Regarding Motion for Order Directing Zipper to File a Proposed Answer Disciplinary Order
Feb 25, 1998 CAF970002 Order Regarding Motion of Respondents and Enforcement's Motion to Strike Disciplinary Order
Nov 13, 1997 CAF970002 Order Regarding Motion of Respondents Requesting an Extension of Time to Answer, a More Definite Answer, and an Updated Service List Disciplinary Order
Dec 26, 1997 CAF970001 Order Regarding Motion to Strike Affirmative Defenses Disciplinary Order
Jul 28, 2011 2008012925001 Order Regarding Pending Motions and Pre-Hearing Issues Disciplinary Order
Aug 7, 2007 CAF040079 Order Regarding Post-Hearing Briefs Disciplinary Order
Jul 20, 1998 C10970141 Order Regarding Pre-Hearing Conference Disciplinary Order
Jun 27, 2007 E102003025201 Order Regarding Pre-Hearing Motions Disciplinary Order
Mar 27, 2007 2005000440701 Order Regarding Pre-Hearing Motions Disciplinary Order
Oct 4, 2001 CAF000045 Order Regarding Production of Documents Disciplinary Order
Feb 17, 1998 C9B970016 Order Regarding Production Under Rule 9251 Disciplinary Order
Aug 9, 2007 2005000323905 Order Regarding Respondent 2's Motions for Official Notice Disciplinary Order
Dec 29, 1997 CAF970002 Order Regarding Respondent Motion for an Extension of Time to Answer Disciplinary Order
Jul 18, 2000 C10000046 Order Regarding Respondent's Motion for Leave to File a Late Answer Disciplinary Order
Feb 1, 2007 E3A20050065 Order Regarding Respondent's Pre-Hearing Submissions Disciplinary Order

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