FINRA Proposes Rule Change Regarding the Composition of Hearing Panels and Extended Hearing Panels

FINRA filed a proposed rule change with the SEC to amend FINRA Rule 9231 and Rule 9232 regarding the composition of Hearing Panels and Extended Hearing Panels.

Specifically, FINRA proposed to add an additional category of persons eligible to be on a Hearing Panel to conduct disciplinary proceedings. The new category would allow the Chief Hearing Officer to select a panelist who "currently serves or previously served on a committee appointed or approved by the FINRA Board, but does not serve currently on the National Adjudicatory Council or as a Director or a Governor."

Additionally, the proposed rule change would amend Rule 9232 regarding the criteria for the appointment of a panelist to a Hearing Panel or Extended Hearing Panel.

See: Text of Proposed Rule Change.