6.6.2. Code of Procedure
FINRA’s disciplinary process is governed by its Code of Procedure, which details how FINRA may initiate disciplinary action, how the disciplinary process is carried out, and the due process rights of the accused.
A complaint alleging a violation must be served in writing to both the accused firm or associated person and FINRA’s Office of Hearing Officers, which will quickly assign a Hearing Officer to preside over a disciplinary hearing. The accused has 25 days to respond after receipt of the complaint. The accused, referred to as the respondent, must specifically admit or deny the allegation or claim insufficient information to decide.
If the respondent fails to reply, a second notice will be issued. Failure to respond to this second notice within 14 days will mean a tacit admission of guilt, and the Hearing Officer may issue a default decision. If the default decision is not appealed within 25 days, it will become the final disciplinary action.
FINRA Rule 9110
If the respondent contests the complaint, preparations are made for a formal hearing. The Chief Hearing Officer shall appoint a Hearing Panel to conduct the disciplinary proceeding and issue a decision.
Within 21 days after a respondent has answered a complaint, the Hearing Officer may order a