SR-FINRA-2023-008

On April 25, 2023, the Financial Industry Regulatory Authority, FINRA, published on its website a press release to inform that it has filed with the U.S. Securities and Exchange Commission (SEC) a proposed rule change, SR-FINRA-2023-008, to make revisions to various FINRA rules to permit the holding of hearings before the Office of Hearing Officers (OHO) and the National Adjudicatory Council (NAC) via video conferences. This measure was temporarily introduced during the COVID-19 pandemic and was found to be functioning well. It should thus be installed on a permanent basis and not be limited to a circumstance such a a pandemic. Typically, FINRA rules requires in-person attendance in hearings before the OHO or the NAC.
Therefore, FINRA proposes to change the above noted rules to permit the holdings of such hearings via video conference, if in-person attendance would pose a health or safety risk for participants or would simply be impracticable.
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 proposed rule amendments are likely to be of interest to all FINRA member firms, so FINRA. If approved, FINRA will issue a Regulatory Notice to announce the effective date.