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 descending Type
Mar 28, 2000 C1000010 Order Granting Enforcement's Motion for Leave to Withhold From Production Certain Documents Disciplinary Order
Oct 10, 2000 CAF000030 Order Granting Enforcement's Motion for Leave to Withhold from Production Certain Documents and Granting Other Relief Disciplinary Order
Mar 9, 2006 CAF040079 Order Granting Enforcement's Motion for Witness Sequestration Disciplinary Order
May 5, 2000 C10990212 Order Granting Enforcement's Motion to Consolidate Disciplinary Order
Mar 8, 2006 CAF040079 Order Granting Enforcement's Motion to Offer Testimony Via Telephone Disciplinary Order
Sep 8, 2008 2006005523401 Order Granting Enforcement's Motion to Permit Counsel for Non-Party Witnesses to Appear at Hearing Disciplinary Order
Mar 1, 2005 ARB050002 Order Granting Enforcement's Rule 9559(M) Motion and Dismissing Proceeding Disciplinary Order
May 18, 2011 2007010580702 Order Granting Enforcement’s Motion Concerning the Testimony of MO, MB, and JF, and Denying the Respondent’s Motion to Exclude Their Testimony Disciplinary Order
Aug 30, 2016 2014043020901 Order Granting Enforcement’s Motion for Exception From Sequestration. Disciplinary Order
Apr 25, 2018 2015046971701 Order Granting Enforcement’s Motion for Leave to Offer Telephone or Videoconference Testimony Disciplinary Order
Mar 30, 2016 2013036681701 Order Granting Enforcement’s Motion for Leave to Withhold Documents From Discovery. Disciplinary Order
Nov 4, 2016 2014039839101 Order Granting Enforcement’s Motion for Partial Summary Disposition. Disciplinary Order
Jan 10, 2018 2014042606902 Order Granting Enforcement’s Motion for Rule-Compliant Answer Disciplinary Order
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
Apr 2, 2015 2013036217601 Order Granting In Part and Denying In Part Enforcement’s Motion for Partial Summary Disposition Disciplinary Order
Oct 14, 2016 201303641201 Order Granting in Part and Denying in Part Enforcement’s Motion for Partial Summary Disposition Disciplinary Order

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