FINRA Proposes to Amend Rules Regarding Temporary and Permanent Cease-and-Desist Orders

FINRA filed proposed rule changes with the SEC. The proposal would amend FINRA rules that govern temporary and permanent cease-and-desist orders.

Specifically, the proposal would amend FINRA Rule Series 9100, 9200, 9300, 9550 and 9800 to:

• modify the evidentiary standard that must be met to impose a temporary cease-and-desist order;
• adopt a new expedited proceeding for addressing repeated failures to comply with temporary or permanent cease-and-desist orders;
• ease administrative burdens in temporary cease-and-desist proceedings;
• harmonize the provisions governing how documents are served in temporary cease-and-desist proceedings and expedited proceedings;
• clarify the process for issuing permanent cease-and-desist orders; and
• conform changes throughout FINRA's Code of Procedure.

See: Text of Proposed Rule Changes.