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|
|May 3, 2018||2014039775501||Order Granting Enforcement’s Motion Regarding Sequestration of Witnesses||Disciplinary Order|
|Nov 9, 2012||2010020846601||Order Granting Enforcement’s Motion to Offer Expert Testimony and Respondent’s Motion to Allow Expert Testimony||Disciplinary Order|
|Jan 28, 2011||2008014621701||Order Granting Enforcement’s Motion to Permit Certain Witnesses to Have Counsel Present||Disciplinary Order|
|Apr 7, 2017||2012035284301||Order Granting Enforcement’s Motion to Strike Respondent’s Post-Hearing Affidavit and Exhibits and Ordering Respondent to Resubmit Post-Hearing Brief.||Disciplinary Order|
|Jul 7, 2004||C8A030100||Order Granting in Part and Deferring in Part Complainant's Motion for Summary Disposition, and Denying Respondents' Motion for Summary Disposition||Disciplinary Order|
|Apr 3, 2003||C3B020015||Order Granting in Part and Denying in Part Complainant's Motion for Summary Disposition||Disciplinary Order|
|Oct 16, 2007||2005001919501||Order Granting in Part and Denying in Part Complainant's Motion for Summary Disposition and Denying Respondent's Motion for Summary Disposition||Disciplinary Order|
|Aug 4, 1998||CAF970011||Order Granting in Part and Denying in Part Complainant's Motion in Limine||Disciplinary Order|
|Jul 7, 1999||C8A990015||Order Granting in Part and Denying in Part Complainant's Motion to Strike Affirmative Defenses||Disciplinary Order|
|Dec 22, 2015||2014040968501||Order Granting in Part and Denying in Part Enforcement's Motion in Limine to Preclude the Respondent from Introducing Testimony and Evidence at the Hearing||Disciplinary Order|
|Oct 14, 2016||201303641201||Order Granting in Part and Denying in Part Enforcement’s Motion for Partial Summary Disposition||Disciplinary Order|
|Apr 2, 2015||2013036217601||Order Granting In Part and Denying In Part Enforcement’s Motion for Partial Summary Disposition||Disciplinary Order|
|Feb 13, 2015||2013036217601||Order Granting in Part and Denying in Part Enforcement’s Motion to Compel Respondent’s Compliance with a Post-Complaint Rule 8210 Request for Testimony||Disciplinary Order|
|Apr 24, 2018||2014041860801||Order Granting in Part and Denying in Part Renewed Motion to Compel.||Disciplinary Order|
|May 21, 2003||CAF030007||Order Granting in Part and Denying in Part Respondent's Motion for More Definite Statement||Disciplinary Order|
|Mar 30, 2003||C3B020015||Order Granting in Part and Denying in Part Respondents' Motion to Compel Discovery||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|
|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|
|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|
|Dec 15, 1997||CMS970028||Order Granting in Part Complainant's Motion to Exclude Witnesses and Amend Exhibit List||Disciplinary Order|
|Oct 31, 2018||2016050025401||Order Granting in Part Enforcement’s Pre-Hearing Motion||Disciplinary Order|
|Mar 10, 1998||C05970035||Order Granting in Part Motion of Complainant to Exclude Respondents' Expert Witness and Certain Other Witnesses||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|
|Apr 4, 2000||C0500006||Order Granting in Part Respondent Motion for More Definite Statement||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|