Table of Contents
SERIES 24 | FINANCIAL REGULATION COURSES
FINRA Rule 9240 is the organizing header rule for the subsection of the 9200 Disciplinary Proceedings series governing the pre-hearing conference and pre-hearing submission processes — the two critical preparation mechanisms that shape every disciplinary hearing before a single witness takes the stand or a single exhibit is offered into evidence. Its title, Pre-Hearing Conference and Submission, announces the subject matter of the two substantive rules that constitute the subsection: FINRA Rule 9241, which governs the pre-hearing conference, and FINRA Rule 9242, which governs the pre-hearing submission. FINRA Rule 9240 itself has no independent operative text — it functions solely as the architectural marker that groups these two rules into a named subsection within the 9200 series, delineating the pre-hearing preparation phase from the preceding complaint, answer, appointment, and scheduling rules and from the following discovery subsection.
FINRA Rule 9240 sits within the 9200 Disciplinary Proceedings section of the 9000 Code of Procedure series as the structural header for the two-rule pre-hearing preparation subsection. The rules within this subsection occupy a pivotal position in the disciplinary proceeding lifecycle — they bridge the gap between the procedural preliminaries of complaint, answer, Hearing Panel appointment, and hearing scheduling on one side, and the substantive evidentiary proceeding of the hearing itself on the other. Every disciplinary hearing of meaningful complexity is preceded by one or more pre-hearing conferences at which the Hearing Officer establishes the framework for the hearing, and by pre-hearing submissions through which each party discloses their evidentiary and legal theories before the hearing begins.
FINRA Rule 9241 — Pre-Hearing Conference — governs the Hearing Officer's authority to convene pre-hearing conferences, the procedure for ordering them, the mandatory attendance requirement and its default consequences, the subjects that may be addressed at pre-hearing conferences, the recording of conferences, and the binding effect of pre-hearing conference orders. Pre-hearing conferences are the primary vehicle through which the Hearing Officer exercises the FINRA Rule 9235(a)(1) authority to manage the pre-hearing phase — setting discovery schedules, resolving preliminary motions, addressing evidentiary issues before the hearing, establishing hearing logistics, and creating the Case Management and Scheduling Order that governs the remainder of the pre-hearing process.
FINRA Rule 9242 — Pre-Hearing Submission — governs the Hearing Officer's authority to require parties to submit pre-hearing materials prior to the hearing, the minimum required content of those submissions when ordered, the restrictions on former FINRA officers providing expert testimony — one of the three FINRA Revolving Door provisions — and the filing and service requirements for pre-hearing submissions. Pre-hearing submissions are the documentary disclosure mechanism that gives each party and the Hearing Panel advance notice of the evidence and legal theories that will be presented at the hearing, enabling efficient hearing management and preventing the unfair surprise that would result if parties could present undisclosed evidence and witnesses without prior notice.
The rules within FINRA Rule 9240's subsection govern what FINRA's Guide to the Disciplinary Hearing Process describes as the period between the filing of the complaint and the commencement of the hearing — a period that may range from several months in a straightforward case to more than a year in a complex multi-respondent matter. During this period, the Hearing Officer manages the proceeding through the mechanisms of FINRA Rules 9241 and 9242, establishing the framework within which the discovery process of the 9250 subseries operates and setting the pre-hearing submission deadlines that determine what each party must disclose before the hearing begins.
The Case Management and Scheduling Order — the primary administrative tool through which Hearing Officers implement the FINRA Rules 9241 and 9242 framework in specific cases — typically establishes the schedule for discovery, the deadlines for pre-hearing submissions, the hearing date and location, and any other case-specific procedural requirements. OHO Order 23-29 confirms the Hearing Officer's enforcement authority under FINRA Rule 9242 — rejecting pre-hearing submissions that do not comply with the CMSO's requirements and granting leave to refile in proper form rather than allowing substantively non-compliant submissions to stand.
The pre-hearing conference and submission framework sits between two of the most important substantive phases of the disciplinary proceeding: the discovery phase governed by the 9250 subseries — in which parties exchange documents and information under FINRA Rules 9251, 9252, and 9253 — and the hearing itself governed by the 9260 subseries, where the evidence and arguments disclosed through pre-hearing submissions are presented to the Hearing Panel.
The rules within FINRA Rule 9240's subsection implement specific aspects of the Hearing Officer's general authority under FINRA Rule 9235. FINRA Rule 9235(a)(1) — the authority to hold pre-hearing conferences and require attendance of party representatives with settlement authority — is specifically implemented by FINRA Rule 9241. FINRA Rule 9235(a)(4) — the authority to resolve procedural and evidentiary matters — encompasses the Hearing Officer's authority to resolve disputes about pre-hearing submission compliance and completeness. The two subsection rules together give operational form to the FINRA Rule 9235 authority in the specific context of pre-hearing preparation.
FINRA Rule 9240 is tested on the Series 24 General Securities Principal examination as the organizational header of the pre-hearing preparation subsection of the disciplinary proceedings framework. Understanding its structural role is prerequisite to correctly navigating the relationship between FINRA Rule 9241's pre-hearing conference provisions and FINRA Rule 9242's pre-hearing submission requirements as an integrated pre-hearing preparation framework.
The key points to retain are these: FINRA Rule 9240 is the organizing header for the two-rule pre-hearing preparation subsection governing pre-hearing conferences under FINRA Rule 9241 and pre-hearing submissions under FINRA Rule 9242; it has no independent operative text but announces the subject matter of the subsection and delineates the pre-hearing preparation phase within the 9200 series; the two rules within the subsection bridge the procedural preliminaries of complaint, answer, and appointment on one side and the hearing itself on the other; the pre-hearing conference and submission framework operates primarily through the Hearing Officer's Case Management and Scheduling Order which establishes discovery schedules, pre-hearing submission deadlines, and hearing logistics; and FINRA Rule 9240's subsection implements specific aspects of the Hearing Officer's general authority under FINRA Rule 9235(a)(1) and (a)(4) in the pre-hearing preparation context.
