FINRA's Code of Procedures, implemented back in 1997, is due for a tweaking to improve workability, provide more clarity and reduce unnecessary duplication. FINRA also seeks generally to improve the efficient administration of FINRA proceedings, is procedural in nature, and will not affect any party’s substantive rights under FINRA rules.

Accordingly, FINRA submitted to the SEC certain rule changes, as described in Rule Filing 11-44, 8/30/11.  As proposed, the rule would be changed to amend FINRA’s Code of Procedure so that, among other things, it:  

• allows service of a complaint (and notices of certain expedited proceedings) on counsel when counsel agrees to accept such service;\
• permits electronic filing of papers with an adjudicator;
• requires an attorney seeking to withdraw from a disciplinary case to file a motion before withdrawal would be approved;
• allows Hearing Officers to manage the parties’ prehearing submissions to reduce and eliminate duplicative filings;
• gives Hearing Panels and the National Adjudicatory Council (“NAC”) additional flexibility as to
  required statements in decisions; and
• for disciplinary appeals, gives authority to counsel to the NAC and subcommittees of the NAC to take certain procedural actions under FINRA’s Code of Procedure.

Effective date of the rule will be announced in a Regulatory Notice no later than 60 days following SEC approval.  Once effective, the proposed rules will apply immediately to all new and pending matters governed by FINRA’s Code of Procedure.

For further details, go to:    [FINRA Rule Filing 11-44, 8/30/11]