Table of Contents
SERIES 24 | FINANCIAL REGULATION COURSES
FINRA Rule 9330 is the subsection header for the third cluster of rules within the 9300 Review series — the two rules governing the constitution of the appellate adjudicative body that conducts substantive review of Hearing Panel decisions on behalf of the National Adjudicatory Council, and the impartiality framework applicable to that body. Its title — Appointment of Subcommittee or Extended Proceeding Committee; Disqualification and Recusal — announces the subject matter of the two substantive rules that follow: FINRA Rule 9331, which governs the NAC Chair's appointment of a Subcommittee or Extended Proceeding Committee to review and recommend a disposition on each appeal; and FINRA Rule 9332, which governs the disqualification and recusal of members of the NAC, the Review Subcommittee, and Subcommittee or Extended Proceeding Committee panelists, as well as Counsel to the NAC, when impartiality concerns arise. FINRA Rule 9330 itself has no independent operative text — it functions as the architectural marker delineating the appellate panel constitution and impartiality subsection within the 9300 series.
FINRA Rule 9330 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 two-rule appellate body constitution and impartiality 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 9331 — Appointment of Subcommittee or Extended Proceeding Committee — is the appellate body appointment rule. The NAC Chair appoints a Subcommittee — typically three members of the NAC — to review the record, conduct oral argument if ordered, and prepare a written recommended decision for the full NAC's consideration pursuant to FINRA Rule 9345. In complex or lengthy appellate proceedings, the NAC Chair may appoint an Extended Proceeding Committee with additional members to provide the redundancy and specialized expertise that the proceeding warrants. The Subcommittee is the working appellate body that most directly engages with the record, the parties' briefs, and any oral argument — its recommended decision under FINRA Rule 9345 is the primary input into the full NAC's formal consideration and decision under FINRA Rule 9349.
FINRA Rule 9332 — Disqualification and Recusal — is the NAC appellate impartiality rule. The rule applies the same FINRA Rule 9160 standard — no person shall participate as an Adjudicator in a matter as to which they have a conflict of interest, bias, or circumstances where their fairness might reasonably be questioned — to NAC members, Review Subcommittee members, Subcommittee and Extended Proceeding Committee panelists, and Counsel to the NAC. The rule establishes the self-recusal mechanism through which a member, panelist, or Counsel identifies and discloses a conflict, and the party motion mechanism through which parties may seek disqualification of specific appellate body members or Counsel. The NAC Chair or Vice Chair decides all disqualification motions at the appellate level, reflecting the same principle that applies in FINRA Rule 9233 and FINRA Rule 9234 at the OHO level — the disqualification decision cannot be made by the potentially conflicted person themselves.
The rules within FINRA Rule 9330's subsection govern the period of the NAC appellate process that begins after the record has been transmitted under FINRA Rule 9321 and before the oral argument phase governed by the 9340 subsection. The Subcommittee appointment under FINRA Rule 9331 is the act that constitutes the working appellate body — without an appointed Subcommittee there is no appellate panel to review the record, conduct oral argument, and prepare the recommended decision that FINRA Rule 9345 requires. The impartiality protections of FINRA Rule 9332 apply from the moment of appointment through the full appellate process — including any period of NAC Board-level review under FINRA Rule 9351.
The inclusion of Counsel to the NAC within FINRA Rule 9332's impartiality framework is one of the most distinctive features of the appellate impartiality structure. Unlike the OHO-level rules where Counsel is not specifically named in the impartiality provisions, the NAC appellate framework recognizes that Counsel's advisory role is so integrated with the Subcommittee's deliberative process that Counsel must be held to the same impartiality standards as the Subcommittee members themselves. This recognition reflects the unique character of the Counsel to the NAC role — closer to the adjudicative body than any other FINRA staff role in the disciplinary system.
FINRA Rule 9330 connects to FINRA Rule 9160 — whose universal impartiality standard FINRA Rule 9332 implements at the appellate level, and which FINRA Rule 9160(b) and (c) specifically cross-reference to FINRA Rule 9332 for NAC and Subcommittee impartiality. It connects to FINRA Rules 9233 and 9234 — the OHO-level counterparts that FINRA Rule 9332 mirrors in the appellate context. It connects to FINRA Rules 9331 and 9332 as the substantive rules it organizes. And it connects to FINRA Rule 9345 — whose recommended decision framework is the output of the Subcommittee appointed under FINRA Rule 9331.
FINRA Rule 9330 is tested on the Series 24 General Securities Principal examination as the organizational header of the appellate body constitution and impartiality subsection — understanding its structural role is prerequisite to navigating the relationship between FINRA Rule 9331's Subcommittee appointment provisions and FINRA Rule 9332's appellate impartiality framework.
The key points to retain are these: FINRA Rule 9330 is the subsection header for the two-rule appellate body constitution and impartiality cluster within the 9300 series — it has no independent operative text but organizes FINRA Rules 9331 and 9332; FINRA Rule 9331 governs the NAC Chair's appointment of a Subcommittee or Extended Proceeding Committee to conduct substantive appellate review and prepare a recommended decision; FINRA Rule 9332 governs disqualification and recusal of NAC members, Review Subcommittee members, Subcommittee and Extended Proceeding Committee panelists, and Counsel to the NAC applying the same FINRA Rule 9160 conflict-bias-reasonably-questioned-fairness standard as the OHO-level impartiality rules; the inclusion of Counsel to the NAC within FINRA Rule 9332's impartiality framework reflects Counsel's uniquely integrated advisory role with the appellate adjudicative body; 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.
