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 ascending Type
Sep 5, 2017 2016051925301 Order Granting Motion to Permit Witness Counsel to be Present During Testimony Disciplinary Order
Jul 16, 2014 2012033128703 Order Granting Motion to Limit Dissemination and Use of Personal Confidential Information Disciplinary Order
Mar 7, 2007 2005000316701 Order Granting Motion to Compel or Alternatively to Preclude Oral or Documentary Evidence Disciplinary Order
Dec 26, 2000 C10000122 Order Granting Motion to Allow Telephone Testimony Disciplinary Order
Sep 13, 2006 E102003025201 Order Granting Motion to Adjourn Proceeding and Setting Pre-Hearing Conference Disciplinary Order
Sep 5, 2017 2016051925301 Order Granting Motion Regarding Witness Sequestration Disciplinary Order
Feb 7, 2003 C07020067 Order Granting Motion in Limine Disciplinary Order
Sep 28, 2006 E8A2003091501 Order Granting Motion for to Permit Certain Witnesses to Have Counsel Present Disciplinary Order
Jan 17, 2003 CAF020007 Order Granting Motion for Reconsideration Disciplinary Order
Jan 31, 2000 C9A990007 Order Granting Motion for Order Permitting Certain Witnesses to Have Counsel Present Disciplinary Order
Aug 25, 2004 C3A030050 Order Granting Motion for Leave to Offer Telephone Testimony Disciplinary Order
Dec 18, 1997 C05970037 Order Granting Motion for Consolidation of Disciplinary Proceedings Disciplinary Order
Aug 24, 2016 2014043020901 Order Granting Joint Motion to Permit Witnesses to Have Counsel Present During Testimony Disciplinary Order
Oct 11, 2005 CAF040058 Order Granting Joint Motion for a Protective Order Disciplinary Order
Aug 17, 2004 C3A030050 Order Granting in Part, and Denying in Part, Respondent's Motion for Issuance of Rule 8210 Requests Pursuant to Rule 9252 Disciplinary Order
Aug 2, 2004 CAF040056 Order Granting in Part, and Denying in Part, Enforcement's Motion for Leave to Offer Telephone Testimony Disciplinary Order
Mar 29, 2005 C01040017 Order Granting in Part the Department's Motion to Preclude the Respondent from Introducing Evidence at the Hearing Disciplinary Order
Apr 11, 2007 CAF040079 Order Granting in Part Respondent's Motion to Exceed Time Limits for Specific Witnesses and Denying Motion for Reconsideration of Total Number of Witnesses to Be Called Disciplinary Order
Apr 4, 2000 C0500006 Order Granting in Part Respondent Motion for More Definite Statement Disciplinary Order
Oct 26, 2003 CAF030011 Order Granting in Part Respondent 1 and Respondent 2's Motion for Production of Documents Under Rule 9251(a)(3) Disciplinary Order
Mar 10, 1998 C05970035 Order Granting in Part Motion of Complainant to Exclude Respondents' Expert Witness and Certain Other Witnesses Disciplinary Order
Dec 15, 1997 CMS970028 Order Granting in Part Complainant's Motion to Exclude Witnesses and Amend Exhibit List Disciplinary Order
Oct 23, 2012 2011026664301 Order Granting in Part and Denying in Part the Department of Enforcement’s Motion to Strike the Answer and Order the Filing of a New Answer Disciplinary Order
Feb 3, 2016 2012033393401 Order Granting in Part and Denying in Part Respondent’s Motion in Limine to Exclude the Testimony of KA, BS, and MC. Disciplinary Order
Apr 21, 2017 2012032019101 Order Granting in Part and Denying in Part Respondents’ Motion Pursuant to FINRA Rules 8210 and 9252. Disciplinary Order

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