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|
|Jul 28, 2011||2008012925001||Order Regarding Pending Motions and Pre-Hearing Issues||Disciplinary Order|
|Dec 26, 1997||CAF970001||Order Regarding Motion to Strike Affirmative Defenses||Disciplinary Order|
|Nov 13, 1997||CAF970002||Order Regarding Motion of Respondents Requesting an Extension of Time to Answer, a More Definite Answer, and an Updated Service List||Disciplinary Order|
|Feb 25, 1998||CAF970002||Order Regarding Motion of Respondents and Enforcement's Motion to Strike||Disciplinary Order|
|Dec 20, 2017||2016047565702||Order Regarding Motion for Order Directing Zipper to File a Proposed Answer||Disciplinary Order|
|Dec 20, 2017||2016047565702||Order Regarding Motion for Order Directing Zipper to File a Proper Answer||Disciplinary Order|
|Dec 26, 1997||CAF970001||Order Regarding Motion for Judgment on the Pleadings||Disciplinary Order|
|Nov 1, 2006||EAF0400300001||Order Regarding Hearing Procedures||Disciplinary Order|
|May 3, 2018||2014039775501||Order Regarding Enforcement’s Motion to Strike Respondent’s Witnesses and Exhibits and Respondent’s Motion to Strike Enforcement Exhibits||Disciplinary Order|
|Dec 9, 1997||C10970128||Order Regarding Department of Enforcements Contact with Respondent's Counsel||Disciplinary Order|
|Sep 21, 1999||CAF980002||Order Regarding Court Reporting Services for the Hearing||Disciplinary Order|
|Feb 13, 2001||C10000122||Order Regarding Complainant's Motion for a Preclusion Order||Disciplinary Order|
|Mar 19, 2003||C3A020039||Order Regarding Complainant's Motion for a Preclusion Order||Disciplinary Order|
|Oct 5, 2005||CLG050049||Order Regarding Attendance of Wittnesses' Counsel at Hearing||Disciplinary Order|
|Nov 18, 2005||CAF040058||Order Regarding Admissibility of Tape Recordings and Transcripts||Disciplinary Order|
|Jun 13, 2007||2006004494201||Order Quashing Post-Complaint Rule 8210 Request for Information||Disciplinary Order|
|Apr 29, 2002||C01010017||Order Pursuant To Conduct Rule 9143||Disciplinary Order|
|Jun 13, 2007||20050000720-02||Order Prohibiting Use of Subpoenas||Disciplinary Order|
|Jun 14, 2005||CAF040058||Order Prohibiting Use of Subpoenas||Disciplinary Order|
|Jan 19, 2006||EAF0400300001||Order Prohibiting Use of Subpeonas||Disciplinary Order|
|Nov 7, 2006||E1020040926-01||Order Precluding the Respondents from Presenting Witnesses at the Hearing, Other Than Respondent 2||Disciplinary Order|
|Mar 23, 2006||CLI050007||Order Precluding Evidence and Denying Respondent's Motion to Continue Hearing||Disciplinary Order|
|Sep 13, 2004||C3A030049||Order Precluding Evidence||Disciplinary Order|
|Aug 18, 2006||E0220030845-01||Order Postponing Hearing||Disciplinary Order|
|Oct 23, 2006||EAF0300770001||Order Permitting Expert Testimony||Disciplinary Order|