Five Strategies for Effectively Trying FINRA Disciplinary Cases

April 22, 2019

Publication
American Bar Association

James D. Bedsole
Michael R. Gaico

 

Brokerage firms and their registered representatives understandably prefer to avoid litigation against their regulators. Consequently, most investigations by FINRA’s Department of Enforcement are resolved through settled outcomes. When FINRA enforcement actions do lead to a disciplinary hearing, defense counsel are faced with a unique (and often unfamiliar) proceeding. Practitioners must understand the venue’s distinctive features and tailor their strategies accordingly.

With this is mind, the Self-Regulatory Organizations Subcommittee of the ABA Securities Litigation Committee recently hosted a regulatory forum in New York on strategies for effectively trying FINRA disciplinary cases. At the forum, FINRA hearing officers, industry panelists, and enforcement counsel provided their perspectives on what works in trying FINRA disciplinary cases. This article gives a brief overview of FINRA disciplinary hearings and relays advice for achieving a successful outcome at trial.

To read the article, click here.