BROWSE BY TOPIC
Stories of Interest
- White House Now Doesn’t Dispute Details of Trump's Call with Army Widow
- Goldman Sachs’ Lloyd Blankfein Just Threw Some Serious Brexit Shade
- Guggenheim Partners ‘Bank Wrecker’ Could Get $100Mn Exit Package
- Proposed Arbitration Rule Change: For Customers Dealing with an Inactive Firm or Associated Person
- This Family Bet It All on Bitcoin
- Clearinghouses Pass CFTC Liquidity Stress Tests
- President Trump Admits He’s Trying to Kill Obamacare. That’s Illegal.
- Trump Plunges Down List of ‘America’s Richest’
- Is Trump’s “Foreclosure King” in Over His Head?
- FBI Arrests NCAA Basketball Coaches and Adidas Rep in Bribery Probe Involving Recruitment
- Equifax CEO Steps Down Amid Hacking Scandal
- Litigation Costs to Rub Salt in RBS Investor Wounds
- RIAs Poised to Land Wirehouse Recruits - Dan Jamieson
- Citibank and U.K. Affiliate to Pay $550K Penalty for Swap Data Reporting Violations - CFTC
- AIG to Restructure into 3 New Units, Marking CEO's First Big Move
- Accounting Firm Deloitte Says It Suffered Cyberattack (subsc reqd)
- Upcoming FINRA Board Meeting and FINRA360 Update
- Elizabeth Warren Lifts Hold on Trump DOJ Antitrust Nominee
- Bigger Mergers Narrow Indy Reps' Options, Alter IBD Channel - Dan Jamieson
- Dentons to Merge with U.K.'s Murray & Spens
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NEWSLETTERS & ALERTS
FINRA Arbitration and Arbitrator Disciplinary Referrals
In this month's Neutral Corner, FINRA issues a reminder that arbitrators can make disciplinary referrals during, or at the conclusion of, arbitration proceedings. The matter or conduct can be from the record or from the material or communications related to the arbitration, which the arbitrator has reason to believe may constitute a violation of FINRA rules, federal securities laws or other applicable rules or laws. In general, arbitrators should refer matters that are of regulatory interest.
A disciplinary referral is not a recommendation that discipline be imposed, but a recommendation that FINRA conduct an investigation to determine whether disciplinary action is appropriate. After final evidentiary hearings, arbitrators may indicate in the Award Information Sheet if they wish to make a disciplinary referral and should use the Disciplinary Referral Form. The referral should be specific and identify documents, exhibits or testimony that gives rise to the referral. Information about the referral will not be part of the award.
In 2014, FINRA amended Rules 12104 and 13104 to allow arbitrators to make a referral, in an open case, of any matter or conduct that the arbitrator has reason to believe poses a serious threat, whether ongoing or imminent, that is likely to harm investors unless immediate action is taken - e.g., evidence of a Ponzi scheme. If arbitrators believe that such a threat exists but the case is about to conclude, it may be preferable to wait until the case concludes to make a post-case referral as long as doing so would not materially compromise investor protection. Arbitrators who want to make a referral should complete a Disciplinary Referral Form, detailing the nature of the potential violation(s) or conduct.
[Click link below for more information on the referral process.]