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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
January 31, 2006 C3A030008 Order Holding Respondent In Default and In Contempt, and Directing Complainant to File a Motion for Entry of Default Decision Disciplinary Order
January 26, 2006 FPI050010 Decision in Department of Enforcement v. James J. Brazil Expedited Decision, Rule 9550 Expedited Decisions
January 20, 2006 C05050015 Order Number 06-14 (C05050015)Order Following Final Pre-Hearing Conference and Rulings on Motions in Limine

Related Documents

Disciplinary Order
January 19, 2006 EAF0400300001 Order Prohibiting Use of Subpeonas

Related Documents

Disciplinary Order
January 19, 2006 CLG050021 Order Establishing Procedure Governing Presentation of Expert Testimony Disciplinary Order
January 17, 2006 CLG050021 Order Denying Complainant's Motion for Appointment of Market Regulation Panelist Disciplinary Order
January 13, 2006 CLI050016 Order Granting, In Part, Complainant's Motion to Preclude and Denying Respondent's Motion to Limit Complainant's Evidence Disciplinary Order
January 12, 2006 C07050029 Order Denying Complainant's Motion to Preclude the Respondent from Offering Evidence, Revising the Pre-Hearing Schedule, and Denying Respondent's Motion to Reconsider Denial of Motion to Compel Discovery

Related Documents

Disciplinary Order
January 12, 2006 E8A2003080701 Order Denying Respondent's Motion for Discovery Disciplinary Order
January 11, 2006 E9B2003033501 Order Denying In Part and Granting In Part Respondent's Motion to Compel Discovery Disciplinary Order
January 10, 2006 CLI050016 Order Denying Respondent's Motion to Compel Discovery Disciplinary Order
January 10, 2006 CLI050016 Order Denying Respondent's Motion to Disqualify Hearing Panelist Disciplinary Order
January 10, 2006 E8A2004065102 Order Requiring Respondent to Supplement His Rule 9252 Request Disciplinary Order
January 09, 2006 C8A050041 Order Denying Respondent's Motion to Set Aside Default Disciplinary Order
January 06, 2006 C05050015 Order Granting Respondent 2's Motion for Production of Documents Pursuant to Rule 9253

Related Documents

Disciplinary Order
January 06, 2006 CLI050004 Order Denying Respondent's Motion to Adjourn Hearing Disciplinary Order
January 04, 2006 C06050004 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
January 01, 2006 SD06013 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2006 SD06001 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2006 SD06005 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2006 SD06010 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2006 SD06015 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2006 SD06007 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2006 SD06002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
January 01, 2006 SD06003 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals