Table of Contents
SERIES 24 | FINANCIAL REGULATION COURSES
FINRA Rule 9340 is the subsection header for the fourth cluster of rules within the 9300 Review series — the five rules governing the substantive appellate proceedings conducted by the Subcommittee or Extended Proceeding Committee appointed under FINRA Rule 9331.
Its title — Proceedings — announces the subject matter of the five rules that follow: FINRA Rule 9341 governing oral argument, FINRA Rule 9342 governing failure to appear at oral argument, FINRA Rule 9343 governing disposition without oral argument, FINRA Rule 9344 governing failure to participate below and abandonment of appeal, and FINRA Rule 9345 governing the Subcommittee's recommended decision to the full NAC.
FINRA Rule 9340 itself has no independent operative text — it functions as the architectural marker delineating the core appellate proceedings phase within the 9300 series, covering the period from the commencement of the Subcommittee's substantive review through the preparation of its recommended decision for full NAC consideration.
FINRA Rule 9340 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 five-rule appellate proceedings 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 9341 — Oral Argument — governs the oral argument process in NAC appellate proceedings. It establishes the parties' right to request oral argument in their notice of appeal or cross-appeal, the Subcommittee's or Extended Proceeding Committee's authority to grant oral argument on its own initiative, the advance notice requirements for oral argument scheduling, the applicable briefing schedule under FINRA Rule 9347, the service of oral argument notices, and the amended email service provision added by SR-FINRA-2022-009.
Oral argument in FINRA appellate proceedings differs from oral argument in federal appellate courts — it is not a matter of absolute right but a process that is granted either at a party's request or at the appellate body's initiative, and when conducted, it follows a structured format in which the Subcommittee presents questions and the parties respond.
FINRA Rule 9342 — Failure to Appear at Oral Argument — governs the default consequences for a party that fails to appear at a scheduled oral argument for which it received due notice. Consistent with the Code's general default framework established in FINRA Rule 9269 for first-level proceedings, a party's failure to appear at scheduled appellate oral argument exposes that party to adverse consequences including potential dismissal of their appeal or cross-appeal, or adverse findings on the issues presented at oral argument.
FINRA Rule 9343 — Disposition Without Oral Argument — establishes the authority of the Subcommittee or Extended Proceeding Committee to decide an appeal on the written record alone without conducting oral argument. Many FINRA appeals are disposed of without oral argument when the written record and briefs provide a sufficient basis for the Subcommittee's recommended decision — oral argument is conducted when the Subcommittee determines it would meaningfully advance the appellate analysis.
FINRA Rule 9344 — Failure to Participate Below; Abandonment of Appeal — addresses two related situations in which an appeal may be dismissed without reaching the merits: when a respondent who failed to participate in the OHO proceeding — by defaulting under FINRA Rule 9269 — subsequently attempts to raise issues on appeal that were not addressed below because of the default; and when a party who has filed an appeal subsequently fails to participate in the appellate proceeding through non-appearance, failure to file required briefs, or other conduct evidencing abandonment of the appeal. The abandonment provision enables the Subcommittee to dispose of appeals that are not being actively pursued rather than holding the appellate record open indefinitely.
FINRA Rule 9345 — Subcommittee or Extended Proceeding Committee Recommended Decision to National Adjudicatory Council — is the culminating rule of the 9340 subsection. After conducting oral argument if held, reviewing the record, and deliberating on the merits, the Subcommittee or Extended Proceeding Committee prepares a written recommended decision setting forth its recommended disposition of the appeal — including whether findings should be affirmed, modified, reversed, or remanded, and what sanctions are appropriate. This recommended decision is submitted to the full NAC for its formal consideration and final determination under FINRA Rule 9349. The recommended decision is not itself a final decision — it is the Subcommittee's analytical output that the full NAC uses as the primary basis for its own deliberations and final decision.
The rules within FINRA Rule 9340's subsection govern the substantive appellate review phase — the period between the Subcommittee's appointment under FINRA Rule 9331 and the full NAC's formal consideration and decision under FINRA Rule 9349. This is the phase in which the Subcommittee engages directly with the record, challenges the parties' arguments through oral argument questions, and develops the analytical framework that its recommended decision will embody.
The oral argument process — when conducted — is the most visible aspect of this phase. The parties appear before the Subcommittee, present their appellate arguments, and respond to Subcommittee questions about the record, the legal standards, and the appropriate disposition of the appeal. The quality of these arguments and the Subcommittee's questions often shape the recommended decision in ways that pure written briefing cannot fully predict. The FINRA Rule 9347 briefing process that precedes oral argument — the appellant's opening brief, the appellee's answering brief, and any authorized reply — provides the written framework within which oral argument takes place.
FINRA Rule 9340 connects to FINRA Rule 9331 — whose Subcommittee appointment creates the body that the 9340 subsection governs. It connects to FINRA Rules 9341 through 9345 as the substantive rules it organizes. It connects to FINRA Rule 9347 — whose briefing schedule and filing requirements govern the written advocacy that precedes the oral argument proceedings governed by FINRA Rules 9341 and 9342. And it connects to FINRA Rule 9349 — whose formal NAC consideration and final decision process receives the FINRA Rule 9345 recommended decision as its primary analytical input.
FINRA Rule 9340 is tested on the Series 24 General Securities Principal examination as the organizational header of the core appellate proceedings subsection — understanding its structural role is prerequisite to correctly navigating the relationship among FINRA Rules 9341 through 9345 as an integrated framework governing the Subcommittee's substantive appellate work from oral argument through recommended decision.
The key points to retain are these: FINRA Rule 9340 is the subsection header for the five-rule core appellate proceedings cluster within the 9300 series — it has no independent operative text but organizes FINRA Rules 9341 through 9345; FINRA Rule 9341 governs oral argument — a process available at party request or Subcommittee initiative rather than as an absolute right; FINRA Rule 9342 governs default consequences for failure to appear at oral argument; FINRA Rule 9343 governs disposition without oral argument when the written record and briefs suffice for the Subcommittee's recommended decision; FINRA Rule 9344 governs dismissal of appeals by parties who failed to participate below or who have abandoned their appeal; FINRA Rule 9345 governs the Subcommittee's written recommended decision submitted to the full NAC for formal consideration under FINRA Rule 9349; the 9340 subsection governs the substantive appellate review phase between Subcommittee appointment and full NAC consideration; 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.
