9840. Issuance of Temporary Cease and Desist Order by Hearing Panel
This rule is no longer applicable. NASD Rule 9840 has been superseded by FINRA Rule 9840. Please consult the appropriate FINRA Rule.
(a) Basis for Issuance
The Hearing Panel shall issue a written decision stating whether a temporary cease and desist order shall be imposed. The Hearing Panel shall issue the decision not later than ten days after receipt of the hearing transcript, unless otherwise extended by the Hearing Officer with the consent of the Parties for good cause shown. A temporary cease and desist order shall be imposed if the Hearing Panel finds:
(1) by a preponderance of the evidence that the alleged violation specified in the notice has occurred; and
(2) that the violative conduct or continuation thereof is likely to result in significant dissipation or conversion of assets or other significant harm to investors prior to the completion of the underlying disciplinary proceeding under the Rule 9200 and 9300 Series.
(b) Content, Scope, and Form of Order
A temporary cease and desist order shall:
(1) be limited to ordering a Respondent to cease and desist from violating a specific rule or statutory provision, and, where applicable, to ordering a Respondent to cease and desist from dissipating or converting assets or causing other harm to investors;
(2) set forth the alleged violation and the significant dissipation or conversion of assets or other significant harm to investors that is likely to result without the issuance of an order;
(3) describe in reasonable detail the act or acts the Respondent is to take or refrain from taking; and
(4) include the date and hour of its issuance.
(c) Duration of Order
A temporary cease and desist order shall remain effective and enforceable until the issuance of a decision under Rule 9268 or Rule 9269.
(d) Service
The Office of Hearing Officers shall serve the Hearing Panel's decision and any temporary cease and desist order by personal service, overnight commercial courier, or facsimile. If service is made by facsimile, the Office of Hearing Officers shall send an additional copy of the Hearing Panel's decision and any temporary cease and desist order by overnight commercial courier. The temporary cease and desist order shall be effective upon service.
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Adopted by SR-NASD-98-80 eff. June 23, 2003. Selected Notice: 03-35. |