Regulatory Notice 14-45

SEC Approves Amendments to FINRA Rules 9231 and 9232 to Add a Category of Persons Eligible to Serve as Panelists in Disciplinary Proceedings

Effective Date: September 26, 2014

Executive Summary

FINRA has amended FINRA Rule 9231 (Appointment by the Chief Hearing Officer of Hearing Panel or Extended Hearing Panel or Replacement Hearing Officer) to establish an additional category of persons eligible to serve as panelists on a Hearing Panel or an Extended Hearing Panel in a disciplinary proceeding to include persons currently serving, or having served previously, on a committee appointed or approved by the FINRA Board. The rule change also makes a conforming amendment to Rule 9232 (Criteria for Selection of Panelists and Replacement Panelists), which establishes criteria for the appointment of eligible panelists to Hearing Panels and Extended Hearing Panels. The rule change will provide FINRA with a larger pool of individuals with experience and expertise who could serve as panelists.

The new rule text is available in the online FINRA Manual.

Questions concerning this Notice should be directed to Gary Dernelle, Associate General Counsel, Office of General Counsel, at (202) 728-8255.