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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
December 15, 2006 2005000315901 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
December 15, 2006 C02050006 In the Matter of the Association of X

Related Documents

Redacted Decision
December 12, 2006 E8A20050252 Hearing Panel Decision in Department of Enforcement vs. CMG Institutional Trading, LLC and Shawn D. Baldwin

Related Documents

Disciplinary Decision
November 16, 2006 2005000316701 Order (1) Granting Complainant's Motion in Limine; (2) Denying Complainant's Motion to Sequester Witnesses, Without Prejudice; (3) Denying Respondents' Motions to Dismiss; (4) Denying Respondents' Motion to Strike; (5) Granting, in Part, Respondents' Motion To Preclude; (6) Denying, in Part, and Deferring, in Part, Respondents' Motion For Leave to Present Expert Testimony and (7) Denying Respondents' Motion for Leave to File a Compilation of Motions, Briefs and Rulings Disciplinary Order
November 14, 2006 C8A050060 Hearing Panel Decision in Department of Enforcement vs. Karen Hill Disciplinary Decision
November 09, 2006 EAF0300770001 Order For Sequestration of Witnesses Disciplinary Order
November 09, 2006 2005000316701 Order Denying Respondents' Request That the Deputy Chief Hearing Officer Not Exercise Authority Pursuant to Rule 9235(b) Disciplinary Order
November 07, 2006 E1020040926-01 Order Precluding the Respondents from Presenting Witnesses at the Hearing, Other Than Respondent 2

Related Documents

Disciplinary Order
November 01, 2006 EAF0400300001 Order Regarding Hearing Procedures

Related Documents

Disciplinary Order
October 31, 2006 2005000127502 Order Following Final Pre-Hearing Conference Modifying Order Precluding Respondents from Introducing Evidence at the Hearing and Dismissing the Third Cause of Complaint

Related Documents

Disciplinary Order
October 26, 2006 CAF040058 Hearing Panel Decision in Department of Enforcement vs. Andrew P. Gonchar and Polyvios T. Polyviou

Related Documents

Disciplinary Decision
October 23, 2006 EAF0300770001 Order Permitting Expert Testimony Disciplinary Order
October 20, 2006 2005000127502 Order Denying Complainant's Motion for Partial Summary Disposition

Related Documents

Disciplinary Order
October 20, 2006 E9B2002055601 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
October 11, 2006 EAF0400300001 Order Denying Respondents' Rule 9252 Motion for the Production of Data, Documents and Testimony

Related Documents

Disciplinary Order
October 10, 2006 EAF0400300001 Order Directing the Parties to Cease Sending Non-Compliant Communications to the Office of Hearing Officers

Related Documents

Disciplinary Order
October 09, 2006 20042000056-01 Order Deferring Ruling on Motion for Summary Disposition Disciplinary Order
October 04, 2006 ARB060029 Order Dismissing Defense and Granting Respondents Leave to File a Motion for Leave to Amend Their Request for Hearing Disciplinary Order
October 03, 2006 EAF0400300001 Order Directing Respondents to File Exhibits and Witness List in Compliance With Pre-Hearing Order, and Extending Related Deadlines

Related Documents

Disciplinary Order
September 28, 2006 ARB060022 Order Deeming Defense as Abandoned, Hearing as Waived, and NASD Suspension Notice as Final Disciplinary Order
September 28, 2006 E8A2003091501 Order Granting Motion for to Permit Certain Witnesses to Have Counsel Present

Related Documents

Disciplinary Order
September 20, 2006 ARB060029 Order Clarifying Agenda for Pre-Hearing Conference Disciplinary Order
September 19, 2006 2005003490801 Hearing Panel Decision in Department of Enforcement vs. Kenneth D. Schacht Disciplinary Decision
September 19, 2006 C07050042 Hearing Panel Decision in Department of Enforcement vs. Wanda P. Sears

Related Documents

Disciplinary Decision
September 18, 2006 CAF030042 Hearing Panel Decision in Department of Enforcement vs. Florence Sarah Pollard

Related Documents

Disciplinary Decision