NFA Proposes Rule Changes Governing BCC Disciplinary Process
NFA proposed several amendments (see here) to rules governing the Business Conduct Committee ("BCC") disciplinary process.
Under the proposed amendments to Compliance Rule Part 3, NFA would revise:
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Rule 3-6 ("Answer"), to state that failure to submit a timely Answer will (i) be deemed an admission to the conclusions stated in the Complaint, (ii) be considered a waiver of hearing and (iii) allow the BCC to issue a default decision against the Respondent, with the option to appeal 15 days following the date of the default decision.
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Rule 3-7 ("Appointment of Hearing Panel"), so that a member of the Hearing Committee may not participate in a Hearing Panel if such member has a potential conflict of interest;
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Rule 3-10 ("Decision"), to allow a decision to incorporate by reference the related complaint, where appropriate; and
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Rule 3-14 ("Penalties"), to double the maximum monetary fine from $250,000 to $500,000 for each violation.
Additionally, the proposal would eliminate Compliance Rule 3-2 ("Termination").