FINRA is a self-regulatory organization with authority to discipline registered broker-dealers and registered representatives. FINRA investigations and enforcement proceedings can result in career-ending sanctions—and SEC matters frequently lead to parallel criminal prosecution.
FINRA has authority to investigate and discipline under FINRA Rule 8210, which requires members and associated persons to produce documents and provide testimony in connection with investigations. Failure to comply with a Rule 8210 request is itself a disciplinary violation and can result in a bar from the securities industry—the most severe sanction FINRA can impose.
FINRA disciplinary proceedings are conducted before a Hearing Panel, with appeals available to the National Adjudicatory Council (NAC), then to the SEC, then to a federal circuit court. Throughout this process, parallel criminal exposure must be carefully managed.
Early legal intervention can significantly impact the outcome of a federal investigation or prosecution.
Mansoor Broachwala, Esq. — Licensed in Illinois since 2017
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