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Adjudication & 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. Title Type
March 04, 2002 C05010017 Hearing Panel Decision in Department of Enforcement v. James S. Davenport

Related Documents

Disciplinary Decision
February 15, 2002 C01010003 Hearing Panel Decision as to Respondent Redacted Decision
February 08, 2002 EQS010002 Order Granting Complainant's Motion To Dismiss Disciplinary Order
January 30, 2002 C3A010036 Order Denying Respondents' Motion For Order Directing Enforcement To Produce Documents Disciplinary Order
January 28, 2002 ARB010016 Non-Summary Suspension Consolidated Proceeding ARB010016 Expedited Decision, Non-Summary Proceeding
January 28, 2002 CAF010028 Order Denying Motion To Disqualify Hearing Officer Disciplinary Order
January 25, 2002 ARB010013 Non-Summary Suspension Proceeding ARB010013 Expedited Decision, Non-Summary Proceeding
January 22, 2002 C8A010066 Order Denying Respondent's Motion To Dismiss Disciplinary Order
January 03, 2002 C07000033 Franklyn Ross Michelin & L.H. Ross & Co., Inc. Disciplinary Decision
January 01, 2002 SD02004 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2002 SD02008 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2002 SD02001 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
January 01, 2002 SD02002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
January 01, 2002 SD02009 In the Matter of the Continued Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2002 SD02003 In the Matter of the Continued Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2002 SD02007 In the Matter of the Continued Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2002 SD02010 In the Matter of the Continued Association of X Redacted Decision, Statutory Disqualification, Approvals
December 28, 2001 CMS000015 Hearing Panel Decision in Department of Enforcement v. Amr "Tony" Elgindy and Key West Securities, Inc.

Related Documents

Disciplinary Decision
December 13, 2001 C10000165 Stephen D. Carcaterra Disciplinary Decision
December 13, 2001 C9A000027 Luther A. Hanson Disciplinary Decision
December 12, 2001 C3A010005 Hearing Panel Decision in Department of Enforcement v. Jay R. Rice Disciplinary Decision
December 07, 2001 C01000037 Hearing Panel Decision in Department of Enforcement v. Pacific On-Line Trading & Securities, Inc. and Timothy Alan McAdams

Related Documents

Disciplinary Decision
December 03, 2001 C07000003 Jack H. Stein Disciplinary Decision
November 21, 2001 C07010017 Hearing Panel Decision as to Respondent Redacted Decision
November 20, 2001 C3A010009 Hearing Panel Decision in Department of Enforcement v. Mark H. Love

Related Documents

Disciplinary Decision