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
Jun 28, 1999 CAF990007 Order Granting Respondents' Motion for Reconsideration Disciplinary Order
May 6, 1998 C10970141 Order Granting Respondents' "Objection to Rule 8210 Requests" and Denying Motion of Respondents to File Reply Memorandum Disciplinary Order
Aug 28, 2000 C3A990071 Order Granting Respondents Motion in Limine Requesting Production of Documents Disciplinary Order
Oct 4, 2004 C9B040036 Order Granting Respondents Rule 9261(C) Request Disciplinary Order
May 11, 2001 C05010012 Order Granting Respondent's Request for Production of Documents Pursuant to NASD Procedural Rule 9252 Disciplinary Order
Nov 4, 2003 CAF030008 Order Granting Respondent's Motion to Quash Rule 8210 Request Disciplinary Order
Feb 15, 2001 CMS000157 Order Granting Respondent's Motion to Exclude Documents Disciplinary Order
Apr 4, 2008 2005003437102 Order Granting Respondent's Motion Pursuant to Rule 9252 to Compel Testimony at Hearing Disciplinary Order
Feb 7, 2006 C05050008 Order Granting Respondent's Motion for Production of Documents Pursuant to Rule 9253 Disciplinary Order
Feb 9, 2006 E9B2003033501 Order Granting Respondent's Motion for Issuance Of Rule 8210 Requests for Information Disciplinary Order
Jun 15, 2004 CAF030058 Order Granting Respondent's Motion for in Camera Inspection of Documents Disciplinary Order
Jul 12, 2010 2008014621701 Order Granting Respondent 2's Motion to File a Reply and Denying Respondent 2's Motion for More Definite Statement Disciplinary Order
Jan 6, 2006 C05050015 Order Granting Respondent 2's Motion for Production of Documents Pursuant to Rule 9253 Disciplinary Order
Jun 7, 2005 C05050015 Order Granting Respondent 2's Motion for More Definite Statement Disciplinary Order
Sep 15, 2006 EAF0400300001 Order Granting Parties Leave to Offer Expert Testimony and Amending Schedule for Hearing Disciplinary Order
Aug 22, 2000 C05990019 Order Granting Partial Summary Disposition In Favor Of The Department Of Enforcement And Continuing This Proceeding For Hearing On Sanctions Disciplinary Decision
Dec 21, 1998 CAF980025 Order Granting Partial Summary Disposition in Favor of the Department of Enforcement and Continuing This Proceeding for Hearing on Sanctions Disciplinary Order
Aug 22, 2000 C05990019 Order Granting Partial Summary Disposition In Favor Of The Department Of Enforcement And Continuing This Proceeding For Hearing On Sanctions Disciplinary Decision
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

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