Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving a Proposed Rule Change To Amend FINRA Rules 1015, 9261, 9341, 9524, 9830 and Funding Portal Rule 900 (Code of Procedure) To Permit Hearings Under Those Rules To Be Conducted by Video Conference

On August 4, 2023, the U.S. Securities and Exchange Commission (SEC) published in the Federal Register (FR) its decision to approve proposed rule changes requested by the Financial Industry Regulatory Authority (FINRA) to permit the holding of hearings before the Office of Hearing Officers (OHO) and the National Adjudicatory Council (NAC) via video conferences. Specifically, this measure was temporarily introduced during the COVID-19 pandemic and was found to be functioning well. FINRA thus proposed to install this „measure“ on a permanent basis and not be limited to a circumstance such a a pandemic. Typically, FINRA rules require(d) in-person attendance in hearings before the OHO or the NAC.
As the OHO conducts hearings in disciplinary proceedings against FINRA member firms and on temporary and permanent cease and desist orders (refrain orders) as regards the activities of FINRA member firms and as the NAC reviews decisions made by the OHO in this context, the final approval is likely to be of interest to all FINRA member firms – according to FINRA.