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.
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||Type|
|Jun 14, 2005||CAF040058||Order Prohibiting Use of Subpoenas||Disciplinary Order|
|Jan 19, 2006||EAF0400300001||Order Prohibiting Use of Subpeonas||Disciplinary Order|
|Nov 7, 2006||E1020040926-01||Order Precluding the Respondents from Presenting Witnesses at the Hearing, Other Than Respondent 2||Disciplinary Order|
|Mar 23, 2006||CLI050007||Order Precluding Evidence and Denying Respondent's Motion to Continue Hearing||Disciplinary Order|
|Sep 13, 2004||C3A030049||Order Precluding Evidence||Disciplinary Order|
|Aug 18, 2006||E0220030845-01||Order Postponing Hearing||Disciplinary Order|
|Oct 23, 2006||EAF0300770001||Order Permitting Expert Testimony||Disciplinary Order|
|Oct 4, 2004||CAF030014||Order Partially Granting the Respondent's Motion to Reconsider Discovery Requests||Disciplinary Order|
|Apr 12, 2006||CLG050021||Order Partially Granting the Complainant's Motion to Disqualify Expert Witness||Disciplinary Order|
|Jul 30, 2007||20050000720-02||Order Overruling the Parties' Objections to Exhibits and Witnesses||Disciplinary Order|
|Sep 15, 2006||ARB060023||Order Overruling Objection to Telephonic Hearing||Disciplinary Order|
|Jul 7, 2003||CAF020053||Order on Respondent's Expert Witness Designation||Disciplinary Order|
|Aug 19, 2005||CMS040165||Order on Remand From the National Adjudicatory Council Granting Complinant's Motion to Disqualify Counsel for Respondents 1 and 2||Disciplinary Order|
|Jun 8, 2011||2007010398802||Order on Enforcement’s Objections to Respondent’s Proposed Exhibit List and Motion In Limine in Part||Disciplinary Order|
|Jan 20, 2006||C05050015||Order Number 06-14 (C05050015)Order Following Final Pre-Hearing Conference and Rulings on Motions in Limine||Disciplinary Order|
|Apr 8, 2010||200500224102||Order Limiting the Dissemination of Personal, Confidential Information||Disciplinary Order|
|Jan 31, 2006||C3A030008||Order Holding Respondent In Default and In Contempt, and Directing Complainant to File a Motion for Entry of Default Decision||Disciplinary Order|
|Dec 28, 2016||2014042690502||Order Granting, in Part, Respondents' Motion Requesting Issuance of FINRA Rule 8210 Requests.||Disciplinary Order|
|Dec 1, 2014||2011025676501||Order Granting, In Part, Motion for More Definite Statement||Disciplinary Order|
|Oct 22, 2015||201203564701||Order Granting, in Part, Enforcement's Motion for Leave to Offer Telephone Testimony||Disciplinary Order|
|Jan 13, 2006||CLI050016||Order Granting, In Part, Complainant's Motion to Preclude and Denying Respondent's Motion to Limit Complainant's Evidence||Disciplinary Order|
|Dec 30, 2014||20080148227-02||Order Granting, in Part, and Denying in Part, Respondents 1, 4, 2’s Motions for More Definite Statement and Denying Respondent 3’s Motion for More Definite Statement||Disciplinary Order|
|Feb 22, 2007||E8A2002109804||Order Granting the Parties' Motions for Telephone Testimony and Deferring Ruling on Respondent's Objection to Enforcement's Proposed Exhibit CX-7||Disciplinary Order|
|Mar 15, 2006||E0220030425-01||Order Granting the Parties' Motions for Leave to Introduce Testimony of Handwriting Experts and Denying Respondent's Motion to Introduce Testimony of a Polygraph Examiner||Disciplinary Order|
|Oct 19, 2005||CAF040058||Order Granting the Parties' Motions for Leave to Introduce Expert Testimony||Disciplinary Order|