Generally, the claimant shall present its case, followed by the respondent's defense. The panel has the discretion to vary the order in which the hearing is conducted, provided that each party is given a fair opportunity to present its case.
Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Adopted by SR-NASD-2004-011 eff. April 16, 2007.Selected Notices: 07-07, 08-57
For disputes involving statutory employment discrimination claims, see Rule 13802.
(a) Disputes Between Members
(1) In an arbitration between members, the panel composition will be as follows:
• If the panel consists of one arbitrator, the arbitrator will be a non-public arbitrator selected from the chairperson roster described in Rule 13400(c), unless the parties agree in
(a) Submitting a dispute to arbitration under the Code does not limit or preclude any right, action or determination by FINRA that it would otherwise be authorized to adopt, administer or enforce.
(b) During the pendency of an arbitration, any arbitrator may refer to the Director any matter or conduct that has come to the arbitrator's attention during a hearing, which the arbitrator has
It may be deemed conduct inconsistent with just and equitable principles of trade and a violation of Rule 2010 for a member or a person associated with a member to:
(a) fail to submit a dispute for arbitration under the Code as required by the Code;
(b) fail to comply with any injunctive order issued pursuant to the Code;
(c) fail to appear or to produce any document in his possession or
Generally, the claimant shall present its case, followed by the respondent's defense. The panel has the discretion to vary the order in which the hearing is conducted, provided that each party is given a fair opportunity to present its case.
Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Adopted by SR-NASD-2003-158 eff. April 16, 2007.Selected Notice: 07-07, 08-57.
A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.Cross References–1122, Filing of Misleading Information as to Membership or Registration2111, Suitability2121.01, Mark-Up Policy2342, "Breakpoint" Sales5130, Restrictions on the Purchase and Sale of Initial Equity Public Offerings5210, Publication of
(a) Authority of Adjudicator and FINRA Staff
For the purpose of an investigation, complaint, examination, or proceeding authorized by the FINRA By-Laws or rules, an Adjudicator or FINRA staff shall have the right to:
(1) require a member, person associated with a member, or any other person subject to FINRA's jurisdiction to provide information orally, in writing, or
B. Howell Griswold, Jr.Alex, Brown & Sons, Baltimore, MD1939Francis A. BonnerBlair, Bonner & Company, Chicago, IL1940Robert W. BairdThe Wisconsin Company, Milwaukee, WI1941H. H. DewarDewar, Robertson & Pancoast, San Antonio, TX1942Henry G. Riter, 3rdRiter & Co., New York, NY1943Ralph ChapmanFarwell, Chapman & Co., Chicago, IL1944Ralph E. PhillipsDean Witter
(a) Improper Use
No member or person associated with a member shall make improper use of a customer's securities or funds.
(b) Prohibition Against Guarantees
No member or person associated with a member shall guarantee a customer against loss in connection with any securities transaction or in any securities account of such customer.
(c) Sharing in Accounts; Extent
This rule is no longer applicable. NASD Rule 1010 Series has been superseded by FINRA Rule 1000 Series. Please consult the appropriate FINRA Rule.
(a) Events Requiring Application
A member shall file an application for approval of any of the following changes to its ownership, control, or business operations:
(1) a merger of the member with another member, unless both are members of the New
