FINRA Makes Video Hearings Available on a Permanent Basis
The SEC approved a FINRA rule amendment to make permanent COVID-related procedural relief that will allow video conference hearings before the Office of Hearing Officers ("OHO") and the National Adjudicatory Council ("NAC").
FINRA amended Rule 1015 ("Review by National Adjudicatory Council"), 9261 ("Evidence and Procedure in Hearing"), 9341 ("Oral Argument"), 9524 ("National Adjudicatory Council Consideration"), 9830 ("Hearing") and Funding Portal Rule 900 ("Code of Procedure"). The final rules differ from previous temporary relief in that:
- OHO and NAC will also have sua sponte authority to order hearings to occur by video conference based on a motion; and
- there will be more flexibility for using video conference for oral arguments in disciplinary proceedings than for evidentiary hearings due to the differences between those types of hearings.
FINRA previously stated that the rule change will "improve and modernize FINRA’s operations so that parties, panelists, and FINRA staff may proceed expeditiously by video conference in the event of certain circumstances, including where unforeseen events make appearing in person difficult or impracticable."
FINRA will announce an effective date in a future Regulatory Notice.