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13212. Sanctions

This rule is no longer applicable. NASD Rule 13212 has been superseded by FINRA Rule 13212. Please consult the appropriate FINRA Rule.

The Industry Code will apply to claims filed on or after April 16, 2007. In addition, the list selection provisions of the Industry Code will apply to previously filed claims in which a list of arbitrators must be generated after April 16, 2007; in these cases, however, the claim will continue to be governed by the remaining provisions of the old Code unless all parties agree to proceed under the new code.

(a) The panel may sanction a party for failure to comply with any provision in the Code, or any order of the panel or single arbitrator authorized to act on behalf of the panel. Unless prohibited by applicable law, sanctions may include, but are not limited to:
  • Assessing monetary penalties payable to one or more parties;

  • Precluding a party from presenting evidence;

  • Making an adverse inference against a party;

  • Assessing postponement and/or forum fees; and

  • Assessing attorneys' fees, costs and expenses.
(b) The panel may initiate a disciplinary referral at the conclusion of an arbitration.
(c) The panel may dismiss a claim, defense or arbitration with prejudice as a sanction for material and intentional failure to comply with an order of the panel if prior warnings or sanctions have proven ineffective.
Adopted by SR-NASD-2004-011 eff. April 16, 2007.

Selected Notices: 07-07

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