FINRA Proposes Amendments to Make Pandemic Procedural Relief Permanent
FINRA proposed amendments to make permanent previously-issued COVID-related procedural relief that would allow video conference hearings before the Office of Hearing Officers ("OHO") and the National Adjudicatory Council ("NAC") under specified conditions.
FINRA temporarily allowed video conference administrative hearings beginning in March 2020. This temporary relief was extended several times (see previous coverage). FINRA now proposes to make the changes, along with additional conditions, permanent .
FINRA said that "the proposed rule change will continue to 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."
FIRNA said that the proposed rule change differs from the temporary amendments in that:
- OHO and the NAC would also have "sua sponte" authority to order hearings to occur by video conference based on a motion; and
- there would 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.
The FINRA Rules to be amended include 1015 ("Review by National Adjudicatory Council"), 9261 ("Evidence and Procedure in Hearing"), 9341, 9524 ("National Adjudicatory Council Consideration"), 9830 ("Hearing") and Funding Portal Rule 900 ("Code of Procedure (Funding Portals)").
Comments on the proposed amendments will be due 21 days after publication in the Federal Register.