Rules 9222 Through 9331, Explained One Rule at a Time
This is Part 7 of FRC's FINRA Rules Quick Reference, continuing directly from Part 6's coverage of complaint and answer procedure. This piece covers how a hearing panel is actually assembled and run, from pre-hearing conferences through discovery, the hearing itself, settlement, and the appeal process that follows a decision.
FRC's SIE Exam Preparation course covers the foundational disciplinary process material every entry-level candidate is tested on. The Series 7 Exam Preparation course goes further into the hearing and appeal mechanics a fully licensed registered representative should understand.
FINRA Rule 9222: Extensions of Time, Postponements, and Adjournments
Rule 9222 sets out the standards for extending deadlines or postponing and adjourning proceedings within the disciplinary process. It gives the process built-in flexibility to accommodate legitimate scheduling conflicts without abandoning the underlying timeline entirely.
FINRA Rule 9230: Appointment of Hearing Panel, Extended Hearing Panel
Rule 9230 is the section heading introducing the rules governing how a hearing panel or extended hearing panel is actually assembled for a disciplinary case. It bridges the complaint stage into the formation of the body that will actually hear and decide the case.
FINRA Rule 9231: Appointment by the Chief Hearing Officer of Hearing Panel or Extended Hearing Panel or Replacement Hearing Officer
Rule 9231 gives FINRA's Chief Hearing Officer the authority to appoint the hearing panel or extended hearing panel for a case, and to appoint a replacement hearing officer if the original one becomes unable to continue. It centralizes responsibility for staffing a proceeding in one designated official.
FINRA Rule 9232: Criteria for Selection of Panelists and Replacement Panelists
Rule 9232 sets out the criteria the Chief Hearing Officer uses when selecting panelists and, where necessary, replacement panelists to sit on a hearing panel. It ensures panel composition follows a consistent, defensible standard rather than an arbitrary selection process.
FINRA Rule 9233: Hearing Panel or Extended Hearing Panel: Recusal and Disqualification of Hearing Officers
Rule 9233 sets out the process for a hearing officer to withdraw from a case due to a conflict of interest or bias, or for a party to move for that hearing officer's disqualification on the same grounds. It protects the impartiality of the person actually presiding over the case.
FINRA Rule 9234: Hearing Panel or Extended Hearing Panel: Recusal and Disqualification of Panelists
Rule 9234 applies the same recusal and disqualification logic as Rule 9233 to the panelists sitting alongside the hearing officer, rather than to the hearing officer alone. It ensures every member of the panel, not just its presiding officer, meets the same impartiality standard.
FINRA Rule 9235: Hearing Officer Authority
Rule 9235 sets out the specific authority a hearing officer holds over the conduct of a proceeding, including managing the hearing, ruling on procedural matters, and maintaining order. It gives the presiding officer the practical tools needed to actually run a case from start to finish.
FINRA Rule 9240: Pre-Hearing Conference and Submission
Rule 9240 is the section heading introducing the rules governing pre-hearing conferences and the submissions parties must make before a hearing takes place. It sets up the preparatory stage that happens between the panel's formation and the actual hearing.
FINRA Rule 9241: Pre-Hearing Conferences
Rule 9241 sets out the procedure for holding a pre-hearing conference, where the hearing officer and parties address procedural and scheduling matters before the substantive hearing begins. It allows many logistical issues to be resolved in advance rather than disrupting the hearing itself.
FINRA Rule 9242: Pre-Hearing Submissions
Rule 9242 sets out what parties must submit to the hearing officer and each other before the hearing, such as witness lists and exhibits. It ensures both sides know in advance what evidence and testimony the other intends to present.
FINRA Rule 9250: Discovery
Rule 9250 is the section heading introducing the discovery rules that let parties obtain documents and information from each other and from FINRA staff ahead of a hearing. It sets the framework the more specific discovery rules that follow operate within.
FINRA Rule 9251: Inspection and Copying of Documents in Possession of Staff
Rule 9251 gives a respondent the right to inspect and copy documents in FINRA staff's possession that are relevant to the case, subject to specified exceptions. It ensures the respondent has meaningful access to the evidence supporting the allegations against them.
FINRA Rule 9252: Requests for Information
Rule 9252 sets out the process for a party to request that the hearing officer issue a subpoena or otherwise compel the production of documents or witness testimony from someone not otherwise providing it voluntarily. It gives the discovery process real enforcement teeth beyond mere voluntary cooperation.
FINRA Rule 9253: Production of Witness Statements
Rule 9253 sets out the requirements for producing prior written or recorded statements of a witness once that witness has testified, similar to the "Jencks Act" style disclosure rule used in other legal proceedings. It ensures a party can test a witness's testimony against what that witness said previously.
FINRA Rule 9260: Hearing and Decision
Rule 9260 is the section heading introducing the rules governing the actual hearing itself and how the panel's decision is reached and issued. It marks the transition from pre-hearing preparation into the substantive proceeding.
FINRA Rule 9261: Evidence and Procedure in Hearing
Rule 9261 sets out the procedural rules governing how the hearing itself is actually conducted, including recent amendments permitting hearings to be held by video conference. It establishes the practical mechanics of presenting a case before the panel.
FINRA Rule 9262: Testimony
Rule 9262 sets out the requirements for how witness testimony is taken during a hearing, including matters like oaths and the recording of testimony. It governs the specific mechanics of putting a witness on the record.
FINRA Rule 9263: Admissibility
Rule 9263 sets out the standard for what evidence is admissible during a hearing, generally more flexible than formal rules of evidence used in civil litigation. It reflects the administrative, rather than fully judicial, nature of these proceedings.
FINRA Rule 9264: Summary Disposition
Rule 9264 allows a hearing officer to decide a case, or part of a case, without a full hearing when there is no genuine dispute over the material facts, similar to summary judgment in civil litigation. It provides an efficient path to resolution when a full contested hearing genuinely isn't necessary.
FINRA Rule 9265: Record of Hearing
Rule 9265 sets out the requirements for creating and maintaining an official record of the hearing, including transcription. It ensures a complete, reliable record exists for any later review or appeal of the decision.
FINRA Rule 9266: Proposed Findings of Fact, Conclusions of Law, and Post-Hearing Briefs
Rule 9266 sets out the process for parties to submit proposed findings of fact, conclusions of law, and post-hearing briefs after the hearing concludes but before a decision is issued. It gives each side a final, formal opportunity to argue how the evidence should be interpreted.
FINRA Rule 9267: Post-Hearing Procedure
Rule 9267 sits within the Hearing and Decision series between the post-hearing briefing process and the panel's formal decision, addressing procedural steps that occur in that window. It functions as a bridge between the parties' final submissions and the panel actually reaching its decision.
FINRA Rule 9268: Decision of Hearing Panel or Extended Hearing Panel
Rule 9268 requires the hearing officer to prepare a written decision reflecting the panel's majority vote within 60 days of the final post-hearing filing deadline, including specific required content and, where sanctions include a permanent cease and desist order, additional required findings. This is the rule that actually produces the panel's formal, appealable decision.
FINRA Rule 9269: Defaults
Rule 9269 sets out the consequences when a respondent fails to answer a complaint or otherwise participate in the proceeding, generally allowing FINRA to treat the allegations as established. It ensures a respondent cannot indefinitely delay a case simply by not responding.
FINRA Rule 9270: Settlement
Rule 9270 sets out the procedure for resolving a disciplinary case through a negotiated settlement rather than a contested hearing, including the required content of a settlement offer and its review process. Most FINRA disciplinary matters are actually resolved this way rather than through a full hearing.
FINRA Rule 9280: Contemptuous Conduct
Rule 9280 addresses contemptuous conduct during a proceeding, giving the hearing officer authority to respond to behavior that disrupts or undermines the integrity of the hearing. It gives the process a real mechanism to maintain order beyond simply asking parties to behave.
FINRA Rule 9285: Interim Orders and Mandatory Heightened Supervision While on Appeal or on Discretionary Review
Rule 9285 allows FINRA to impose interim orders or mandatory heightened supervision on a respondent while a decision is under appeal or discretionary review, rather than waiting for the appeal process to fully conclude. It addresses the real-world risk that a sanctioned individual could cause further harm during a lengthy appeal.
FINRA Rule 9290: Expedited Disciplinary Proceedings
Rule 9290 sets out a streamlined process for disciplinary proceedings in specific circumstances that call for faster resolution than the standard timeline allows. It gives FINRA a faster enforcement path when the ordinary Code of Procedure timeline would be inadequate.
FINRA Rule 9291: Permanent Cease and Desist Orders
Rule 9291 sets out the standards and required content for a permanent cease and desist order imposed as part of a disciplinary sanction, addressing the content, scope, and form such an order must take. It gives FINRA a sanction that can prohibit specific ongoing conduct indefinitely, not just penalize past violations.
FINRA Rule 9300: Review of Disciplinary Proceeding by National Adjudicatory Council and FINRA Board; Application for SEC Review
Rule 9300 is the section heading opening the appeal process, covering review by the National Adjudicatory Council, discretionary review by the FINRA Board, and the ultimate right to seek review from the SEC. Every rule from this point through the rest of this guide sits underneath this appeals framework.
FINRA Rule 9310: Appeal to or Review by National Adjudicatory Council
Rule 9310 sets out the process for appealing a hearing panel's decision to FINRA's National Adjudicatory Council, the body responsible for reviewing disciplinary decisions before they become final. It gives a respondent, and in some cases FINRA staff, a formal path to challenge an adverse outcome.
FINRA Rule 9311: Appeal by Any Party; Cross-Appeal
Rule 9311 sets out the specific procedure for a party to file an appeal, and for the opposing party to file a cross-appeal, once a hearing panel decision has been issued. It works alongside Rule 9310's broader appeal framework to define exactly how that appeal is actually initiated.
FINRA Rule 9312: Review by National Adjudicatory Council on its Own Initiative
Rule 9312 allows the National Adjudicatory Council to call a hearing panel decision up for review on its own initiative, without waiting for a party to file an appeal. It gives FINRA's appellate body a proactive check on decisions it believes warrant a closer look.
FINRA Rule 9313: Counsel to the National Adjudicatory Council
Rule 9313 addresses the role and authority of counsel to the National Adjudicatory Council within an appeal proceeding, aligning that authority with the general filing standards set out in Rule 9136. It clarifies the procedural standing of the NAC's own legal staff during a review.
FINRA Rule 9320: Discretionary Review by FINRA Board
Rule 9320 is the section heading introducing the rules governing the FINRA Board's discretionary authority to review a decision, sitting above the National Adjudicatory Council in the overall appeal hierarchy. It represents the next level of internal review after the NAC stage.
FINRA Rule 9321: Discretionary Review by FINRA Board
Rule 9321 sets out the specific procedure for the FINRA Board to exercise discretionary review over a National Adjudicatory Council decision. It gives FINRA's most senior governing body the final internal say before a matter could proceed to the SEC.
FINRA Rule 9322: Effect of the Filing of an Application for Discretionary Review
Rule 9322 sets out what effect filing an application for FINRA Board discretionary review actually has on the underlying decision and any related sanctions while that review is pending. It clarifies whether a sanction is stayed or continues to apply during this stage of the appeal.
FINRA Rule 9330: Application to SEC for Review
Rule 9330 sets out the process for a party to apply to the SEC for review of a final FINRA disciplinary decision, once FINRA's own internal appeal process has been exhausted. It is the bridge between FINRA's self-regulatory disciplinary system and federal securities law oversight.
FINRA Rule 9331: Effect of Application to SEC for Review on Sanctions and Costs
Rule 9331 sets out what effect an application for SEC review has on any sanctions or costs already imposed by FINRA, including whether they are stayed pending that review. It closes out the appeal chain by clarifying exactly what happens to a sanction while the SEC's own review is underway.
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