Table of Contents
SERIES 24 | FINANCIAL REGULATION COURSES
FINRA Rule 9310 is the subsection header for the first cluster of rules within the 9300 Review series — the three rules governing the two pathways through which a Hearing Panel or Hearing Officer decision reaches the National Adjudicatory Council for appellate review, and the institutional support structure through which that review is conducted. Its title — Appeal to or Review by National Adjudicatory Council — announces the subject matter of the three substantive rules that follow: FINRA Rule 9311, which governs party-initiated appeals and cross-appeals; FINRA Rule 9312, which governs NAC-initiated discretionary review; and FINRA Rule 9313, which governs the role of Counsel to the National Adjudicatory Council in appellate proceedings. FINRA Rule 9310 has no independent operative text — it functions as the architectural marker delineating the first subsection of the 9300 series and signaling to practitioners that FINRA Rules 9311, 9312, and 9313 form a unified framework governing the initiation of NAC appellate review.
FINRA Rule 9310 sits within the 9300 Review of Disciplinary Proceeding by National Adjudicatory Council and FINRA Board; Application for SEC Review series as the structural header for the appeal initiation subsection. It was adopted as part of the original Code of Procedure by SR-NASD-97-28 effective August 7, 1997 and has been maintained as the subsection header through all subsequent amendments to the rules within it.
FINRA Rule 9311 — Appeal by Any Party; Cross-Appeal — is the foundational appellate right provision. It establishes that any party aggrieved by a Hearing Panel or Hearing Officer decision issued under FINRA Rule 9268 or a default decision issued under FINRA Rule 9269 may appeal to the NAC by filing a written notice of appeal within twenty-five days after service of the decision. The rule establishes the automatic stay of the Hearing Panel decision pending NAC review — with the critical exception that PCDOs are not stayed by appeal. It provides for cross-appeals by any other party within ten days of the filing of the original appeal. And it establishes the filing and service requirements for appeal papers. The twenty-five-day appeal period is computed pursuant to FINRA Rule 9138's time computation rules, with the three-day mail addition applying if the decision was served by mail.
FINRA Rule 9312 — Review Proceeding Initiated by Adjudicatory Council — provides the NAC's independent discretionary authority to call any Hearing Panel or Hearing Officer decision for review on its own initiative. Without any party filing an appeal, the NAC may call a decision for review within forty-five days after service of the decision on the parties. This discretionary call-for-review authority enables the NAC to ensure appellate oversight of significant disciplinary decisions even when neither party chooses to appeal — whether because the Department of Enforcement is satisfied with a Hearing Panel decision imposing insufficient sanctions, a respondent has decided not to appeal a decision that may have systemic policy implications, or the NAC identifies a legal issue in the decision that warrants review regardless of the parties' preferences. The NAC's call for review triggers the same appellate process as a party appeal under FINRA Rule 9311.
FINRA Rule 9313 — Counsel to the National Adjudicatory Council — defines the dual institutional roles of NAC Counsel in appellate proceedings. Counsel to the NAC is an Office of General Counsel attorney who serves two distinct functions depending on the context. In appellate proceedings where the Department of Enforcement is the appellee, Counsel to the NAC advises the NAC Subcommittee on the applicable legal standards and the quality of the Hearing Panel's analysis without acting as an advocate for either party. In proceedings where the Department of Enforcement is the appellant — when Enforcement has appealed a Hearing Panel decision that it found insufficiently punitive — Counsel to the NAC serves in an advisory capacity to the appellate body while Enforcement counsel serves as the active advocate. The careful distinction between Counsel to the NAC's advisory function and the enforcement advocacy function is essential to maintaining the separation between FINRA's prosecutorial and adjudicative roles that FINRA Rule 9144 requires.
The two pathways to NAC review that FINRA Rules 9311 and 9312 establish — party appeal and NAC discretionary call — together ensure comprehensive appellate oversight of OHO disciplinary decisions. The party appeal pathway is the primary mechanism: the vast majority of NAC appellate proceedings are initiated by respondents appealing adverse Hearing Panel decisions. The discretionary call pathway is the institutional backstop: it ensures that decisions of significant legal or policy importance reach the NAC for review regardless of whether the parties have chosen to appeal.
The asymmetry in the time periods — twenty-five days for party appeals under FINRA Rule 9311, forty-five days for NAC discretionary calls under FINRA Rule 9312 — reflects the different institutional processes involved. A party appeals within twenty-five days of receiving the decision, which may prompt immediate evaluation of whether to appeal. The NAC's call for review follows a more deliberate institutional assessment process — the full forty-five-day window allows NAC staff, NAC Counsel, and NAC members time to review the decision for systemic legal issues that might warrant discretionary review even without a party appeal.
The phrase Rule 9310 Series — occasionally used in legal documents and FINRA guidance to describe the appeal initiation rules collectively — refers to FINRA Rules 9311, 9312, and 9313 as the three rules organized under FINRA Rule 9310's subsection header. This collective reference, like the Rule 9130 Series and Rule 9300 Series references used elsewhere in the Code, derives its meaning from the subsection header that FINRA Rule 9310 provides.
FINRA Rule 9310 connects directly to FINRA Rules 9268 and 9269 — the Hearing Panel decision and default decision rules that produce the decisions subject to appeal under FINRA Rule 9311 and call for review under FINRA Rule 9312. It connects to FINRA Rule 9300 as the first subsection within the series that FINRA Rule 9300 organizes. It connects to FINRA Rule 9320 — the record transmission subsection — as the next phase of the appellate process after appeal initiation under FINRA Rule 9310's rules. And it connects to FINRA Rule 9330 — the appellate panel appointment subsection — as the body constitution phase that follows record transmission.
FINRA Rule 9310 is tested on the Series 24 General Securities Principal examination as the organizational header of the appeal initiation subsection of the NAC review framework — understanding its structural role is prerequisite to correctly navigating the relationship among FINRA Rules 9311, 9312, and 9313 as a unified framework governing the two pathways through which Hearing Panel decisions reach the NAC.
The key points to retain are these: FINRA Rule 9310 is the subsection header for the three-rule appeal initiation cluster within the 9300 series — it has no independent operative text but organizes FINRA Rules 9311, 9312, and 9313 as a unified framework; FINRA Rule 9311 establishes the party appeal right — twenty-five days from service of the Hearing Panel decision, automatic stay of the decision pending NAC review except for PCDOs, and cross-appeal right within ten days of the original appeal; FINRA Rule 9312 establishes the NAC's independent discretionary call-for-review authority — forty-five days from service of the decision, available without any party appeal, enabling NAC oversight of significant decisions regardless of party preferences; FINRA Rule 9313 defines the dual advisory and advocacy roles of Counsel to the NAC in appellate proceedings — advisory to the adjudicative body and separate from the Department of Enforcement's advocacy function; the two pathways together ensure comprehensive appellate coverage of OHO decisions through party initiative and institutional oversight; and the rule was adopted as part of the original 1997 Code of Procedure and has been maintained as the subsection header through all subsequent amendments.
