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.sort descending Title Type
Aug 10, 2015 SD-MCDC-031 et al. Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Raymond James & Associates, Inc. Statutory Disqualification, Approvals
Nov 30, 2015 SD-MCDC-036 et al. J.J.B Hilliard, W.L. Lyons, LLC, Mesirow Financial, Inc., BB&T Securities, LLC, Edward D. Jones & Co., L.P., UBS Financial Services Inc. Statutory Disqualification, Approvals
Nov 30, 2015 SD-MCDC-046 et al. Ameritas Investment Corp., Duncan-Williams, Inc., Estrada Hinojosa & Company, Inc., Fifth Third Securities, Inc., The Frazer Lanier Company, Inc., Joe Jolly & Co., Inc., NW Capital Markets, Inc., Prager & Co., LLC, Ross, Sinclaire & Associates, LLC Statutory Disqualification, Approvals
Nov 30, 2015 SD-MCDC-049 et al. Comerica Securities, Inc., Crews & Associates, Inc., Northland Securities, Inc., PNC Capital Markets LLC Statutory Disqualification, Approvals
Mar 24, 2016 SD-MCDC-053 et al Boenning & Scattergood, Inc., First Midstate, Inc., Mitsubishi UFJ Securities (USA), Inc., Municipal Capital Markets Group, Inc., Roosevelt & Cross, Inc. Statutory Disqualification, Approvals
Mar 24, 2016 SD-MCDC-054 et al D.A. Davidson & Co., T.D. Securities (USA) LLC, Janney Montgomery Scott LLC, Keybanc Capital Markets Inc. Statutory Disqualification, Approvals
Mar 24, 2016 SD-MCDC-059 et al Barclays Capital Inc., Hilltop Securities, Inc., Jefferies LLC Statutory Disqualification, Approvals
Jan 1, 2000 SD00001 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2000 SD00002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00003 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00004 Proposed Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2000 SD00005 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2000 SD00006 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2000 SD00007 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00010 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00011 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2000 SD00012 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2000 SD00013 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2001 SD010004 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2001 SD010007 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2001 SD01001 In the Matter of the Continued Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2001 SD01002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2001 SD01005 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2001 SD01010 In the Matter of the Continued Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2001 SD01011 View Decision Approvals, Statutory Disqualification, Redacted Decision

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