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|
|Sep 26, 2003||CLI030017||Order Granting Part Respondents' Motion for More Definite Statement||Disciplinary Order|
|May 17, 2005||C9B040098||Order Granting Motions to Strike Affirmative Defenses and for Leave to Offer Expert Testimony||Disciplinary Order|
|Feb 14, 2001||CAF000045||Order Granting Motions to Quash||Disciplinary Order|
|Oct 7, 1997||C3A970066||Order Granting Motion to Withdraw as Counsel to Respondent||Disciplinary Order|
|Apr 27, 1999||C11970032||Order Granting Motion to Strike Affirmative Defenses||Disciplinary Order|
|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|
|Mar 20, 2018||2015046971701||Order Granting Motion to Allow De Bene Esse Deposition||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|
|Aug 1, 2018||2016050025401||Order Granting Motion for Leave to File Second Amended Complaint||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|