Regulatory Notice 14-40

Confidentiality Provisions in Settlement Agreements and the Arbitration Discovery Process

Executive Summary

FINRA reminds firms that it is a violation of FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) to include confidentiality provisions in settlement agreements or any other documents, including confidentiality stipulations made during a FINRA arbitration proceeding, that prohibit or restrict a customer or any other person from communicating with the Securities and Exchange Commission (SEC), FINRA, or any federal or state regulatory authority regarding a possible securities law violation.

Questions concerning this Notice should be directed to:

  • Victoria L. Crane, Associate General Counsel, Office of General Counsel, at (202) 728-8104 or
  • Margo A. Hassan, Assistant Chief Counsel, Dispute Resolution, at (212) 858-4481.