FINRA Rule 9830

FINRA Rule 9830(a): When the Hearing Is Held

FINRA Rule 9830(a) establishes the most compressed mandatory hearing timeline in the entire Code of Procedure — the hearing shall be held not later than fifteen days after service of the notice and filing initiating the proceeding. Fifteen calendar days from service of the initiating notice to a formal evidentiary hearing before a three-person Hearing Panel is an extraordinary compression relative to standard disciplinary proceedings, which may take six months or more to reach a hearing. This compression is the operational expression of the Rule 9800 series' fundamental purpose — the TCDO exists to halt ongoing investor harm urgently, and a hearing timeline of months would defeat that purpose entirely.

The fifteen-day period is measured from the date of service of the notice under FINRA Rule 9810(a)'s service provisions — meaning from the day service is complete, whether by personal delivery, overnight commercial courier, facsimile, or email. The notice and filing are contemporaneous acts under FINRA Rule 9810(a) and (d) — the same notice that is served on the respondent is also filed with OHO, and both acts occur simultaneously, meaning the fifteen-day clock and the OHO case administration process begin at the same moment.

The good-cause extension authority — unless otherwise extended by the Chief Hearing Officer or Deputy Chief Hearing Officer for good cause shown — preserves administrative flexibility for genuine emergencies without making the fifteen-day deadline optional. Good cause in the TCDO context is a demanding standard. Administrative inconvenience, scheduling conflicts of counsel who took the engagement knowing the timeline, and inadequate hearing preparation time resulting from delayed engagement of counsel do not constitute good cause. Circumstances that would qualify include serious illness of the respondent preventing meaningful participation, extraordinary logistical failures outside any party's control, or other genuinely unforeseeable impediments that make proceeding on the standard timeline fundamentally unfair.

When a Hearing Officer or Hearing Panelist is recused or disqualified during the proceeding — triggering the FINRA Rule 9820(b) replacement process — the fifteen-day clock resets. The hearing shall be held not later than five days after a replacement Hearing Officer or Hearing Panelist is appointed. This five-day reset window from replacement appointment is itself compressed relative to the original fifteen-day window, reflecting the reality that by the time a disqualification is identified and resolved, much of the pre-hearing preparation has already occurred and both parties are substantially ready to proceed.

The Video Conference Hearing Authority: The 2023 Amendment

The third sentence of FINRA Rule 9830(a) — upon a determination that proceeding in person may endanger the health or safety of the participants or would be impracticable, or upon consideration of a joint motion of the parties for good cause shown, the Chief Hearing Officer or Deputy Chief Hearing Officer may, in the exercise of reasonable discretion, order the hearing to be conducted, in whole or in part, by video conference — was added permanently to FINRA Rule 9830 by SR-FINRA-2023-008 effective August 23, 2023 as announced in Regulatory Notice 23-13.

This permanent video conference authority is the direct legacy of the COVID-19 pandemic response. SR-FINRA-2020-027 had originally added temporary video conference authority to FINRA Rule 9830 as an emergency measure in September 2020. That temporary authority was extended multiple times through SR-FINRA-2020-042, SR-FINRA-2021-006, and SR-FINRA-2021-019 before expiring in April 2023. SR-FINRA-2023-008 — approved by the SEC on July 31, 2023 as confirmed from the Federal Register — made the video conference authority permanent based on FINRA's experience that virtual hearings can be conducted effectively and efficiently without compromising the integrity of the proceeding.

Two distinct triggering conditions activate the video conference authority. The first — a determination that proceeding in person may endanger the health or safety of the participants or would be impracticable — is a unilateral finding by the Chief Hearing Officer or Deputy Chief Hearing Officer, made without requiring a party motion. This covers health emergencies, natural disasters, geographic impediments, and other circumstances where in-person hearings would pose genuine risks or be logistically impossible. The second — consideration of a joint motion of the parties for good cause shown — requires both parties to agree on video conference format and to demonstrate good cause for the departure from the in-person default. A joint motion by parties who simply prefer the convenience of video conference without a specific good cause showing does not satisfy this condition.

The in whole or in part formulation preserves flexibility — portions of the hearing may be conducted by video conference while other portions proceed in person when circumstances warrant a hybrid approach.

FINRA Rule 9830(b): Service of Notice of Hearing

FINRA Rule 9830(b) requires OHO to serve a notice of the date, time, and place of the hearing on the Department of Enforcement and the Respondent — or upon authorized counsel or representative under FINRA Rule 9141 who agrees to accept service — not later than seven days before the hearing. The seven-day advance notice standard gives parties and their counsel adequate preparation time within the compressed fifteen-day overall hearing window. This means OHO must serve the notice of hearing within eight days of the initiating notice service — leaving at most seven days of the fifteen-day window for the hearing notice period itself.

Service shall be made pursuant to FINRA Rule 9134(c). The October 2025 amendment through SR-FINRA-2025-013 added the OHO Portal service provision — service through the OHO Portal shall be deemed complete upon submitting the document to the OHO Portal — reflecting the operational integration of OHO's case management system with the Portal infrastructure established by the October 2025 OHO Portal implementation. The notice shall be effective when service is complete under whichever method is used.

The Hearing Officer may order a different notice period — the unless otherwise ordered by the Hearing Officer qualifier preserves flexibility when the specific circumstances of a TCDO proceeding require a shorter or longer notice period within the overall fifteen-day hearing window.

FINRA Rule 9830(c): Authority of Hearing Officer

FINRA Rule 9830(c) establishes that the Hearing Officer has authority to do all things necessary and appropriate to discharge their duties as set forth under FINRA Rule 9235. This cross-reference to FINRA Rule 9235 — the Hearing Officer Authority rule in the standard disciplinary proceedings framework — imports the full scope of Hearing Officer case management powers into cease and desist proceedings without restating them. FINRA Rule 9235's comprehensive authority encompasses scheduling, pre-hearing conferences, rulings on motions and procedural matters, evidence rulings, management of witnesses, and all other adjudicative management functions that a presiding officer exercises throughout a proceeding.

The breadth of this authority cross-reference is deliberate — the cease and desist proceeding context, with its compressed timeline and high stakes, demands that the Hearing Officer have full and unquestioned authority to manage the proceeding efficiently without gaps that could be exploited to delay or derail the hearing.

FINRA Rule 9830(d): Witnesses

FINRA Rule 9830(d) establishes that a person subject to FINRA's jurisdiction who testifies at a cease and desist hearing shall testify under oath or affirmation, administered by a court reporter or a notary public. This witness oath requirement is the same standard applicable in standard disciplinary proceedings under FINRA Rule 9262 — the fact that the proceeding is expedited and the timeline compressed does not diminish the solemnity and legal effect of testimony. Testimony under oath in a cease and desist proceeding is subject to the same truthfulness obligations as testimony in any other legal proceeding, and false testimony carries corresponding legal consequences.

The court reporter or notary public administration requirement creates a documentary record of the oath administration — confirming that the witness was properly sworn before testifying and providing a foundation for any subsequent enforcement action for false testimony.

FINRA Rule 9830(e): Pre-Hearing Information and Additional Information During Deliberation

FINRA Rule 9830(e) establishes two distinct information exchange mechanisms operating at different points in the proceeding. The pre-hearing mechanism — prior to the hearing, the Hearing Officer may order a party to furnish to all other parties and the Hearing Panel such information as deemed appropriate, including any or all of the pre-hearing submissions described in FINRA Rule 9242(a) — is a discretionary pre-hearing exchange tool. The Hearing Officer assesses what pre-hearing information would meaningfully advance the hearing's efficiency and orders production accordingly. The documentary evidence submitted pursuant to this paragraph does not automatically become part of the record — it enters the record only if the Hearing Officer or Hearing Panel orders its inclusion under FINRA Rule 9830(g).

The deliberation mechanism — at any time during the Hearing Panel's consideration, the Hearing Panel may direct a party to submit additional information — enables the Panel to fill factual gaps identified during deliberation without reopening the hearing itself. Any additional information submitted must be provided to all parties at least one day before the Hearing Panel renders its decision — a due process protection ensuring that no information influences the Panel's decision without the opposing party having the opportunity to review and address it.

FINRA Rule 9830(f): Transcript

FINRA Rule 9830(f) establishes the mandatory transcript requirement — the hearing shall be recorded by a court reporter and a written transcript prepared. This mandatory recording requirement applies regardless of whether the hearing is conducted in person or by video conference. The transcript is the official documentary record of the oral proceedings and serves as the foundation for any subsequent review under FINRA Rule 9850, any NAC review, and any SEC review under FINRA Rule 9870.

Parties may purchase a transcript copy from the court reporter at prescribed rates, and witnesses may purchase a copy of their own testimony. Proposed corrections to the transcript may be submitted by affidavit to the Hearing Panel within a reasonable time determined by the Panel, and the Panel may order corrections as requested or on its own motion with notice to all parties.

FINRA Rule 9830(g): Record and Evidence Not Admitted

FINRA Rule 9830(g) defines the composition of the official record of the cease and desist proceeding. The record consists of: the notice initiating the proceeding, the declaration, and the proposed order described in FINRA Rule 9810(b) — the three mandatory components of the initiating notice that form the factual and legal foundation of the proceeding; the transcript of the hearing; all evidence considered by the Hearing Panel; and any other document or item accepted into the record by the Hearing Officer or the Hearing Panel.

OHO is designated as the custodian of the record — the institutional repository responsible for maintaining the complete official record throughout the proceeding and any subsequent review. Evidence proffered but not accepted into the record by the Hearing Panel — rejected or excluded evidence — is retained by the custodian until FINRA's decision becomes final or until the conclusion of any SEC or federal court review. This retention requirement ensures that the complete evidentiary history of the proceeding, including what was offered but rejected, is available for any reviewing tribunal.

FINRA Rule 9830(h): Failure to Appear at Hearing

FINRA Rule 9830(h) establishes asymmetric consequences for the two possible failure-to-appear scenarios — respondent non-appearance and Department of Enforcement non-appearance — reflecting the different institutional positions of the parties.

When a respondent fails to appear at a hearing for which it has notice, the consequences are severe: the allegations in the notice and accompanying declaration may be deemed admitted, and the Hearing Panel may issue a temporary cease and desist order in a TCDO proceeding or a permanent cease and desist order in a PCDO proceeding without further proceedings. A respondent who receives proper notice of a cease and desist hearing and simply does not appear has effectively conceded every allegation in the initiating notice and the declaration, and the Hearing Panel may enter the requested order immediately. The may formulations preserve Panel discretion — in theory the Panel could decline to enter the order even after a respondent's non-appearance — but in practice a respondent's failure to appear at a cease and desist hearing leaves the Panel with a fully documented record of alleged violations and no countervailing evidence.

When the Department of Enforcement fails to appear at a hearing for which it has notice, the Hearing Panel may order that the proceeding be dismissed. This dismissal power is the appropriate remedy for the Department's failure — if FINRA's own enforcement staff does not appear to prosecute the proceeding, the respondent should not remain subject to a pending cease and desist action.

Connection to FINRA Rules 9235, 9242, 9810, 9820, and 9840

FINRA Rule 9830 connects to FINRA Rule 9235 — whose comprehensive Hearing Officer authority is incorporated by reference into cease and desist proceedings through FINRA Rule 9830(c). It connects to FINRA Rule 9242(a) — whose pre-hearing submission categories may be ordered by the Hearing Officer under FINRA Rule 9830(e). It connects to FINRA Rule 9810(b) — whose notice, declaration, and proposed order form the initial components of the FINRA Rule 9830(g) record. It connects to FINRA Rule 9820 — whose appointment framework produces the Hearing Panel that conducts the FINRA Rule 9830 hearing and whose five-day disqualification motion deadline is calibrated to the fifteen-day hearing timeline. And it connects to FINRA Rule 9840 — whose issuance of order provisions govern what the Hearing Panel does following the FINRA Rule 9830 hearing.

Examination Relevance and Key Takeaways

FINRA Rule 9830 is tested on the Series 7 and Series 24 examinations as the cease and desist hearing rule — a rule with specific testable timelines, a significant recent amendment adding permanent video conference authority, and asymmetric failure-to-appear consequences.

The key points to retain are these: the TCDO or PCDO hearing must be held not later than fifteen days after service of the notice and filing initiating the proceeding — the most compressed mandatory hearing timeline in the Code; the Chief Hearing Officer or Deputy Chief Hearing Officer may extend this period for good cause shown; when a Hearing Officer or Panelist is recused or disqualified the hearing must be held not later than five days after a replacement is appointed; SR-FINRA-2023-008 effective August 23, 2023 permanently added video conference hearing authority — available upon a Chief or Deputy Chief Hearing Officer determination of health or safety endangerment or impracticability, or upon a joint party motion for good cause shown — confirmed from Regulatory Notice 23-13; OHO must serve notice of hearing on the parties not later than seven days before the hearing under FINRA Rule 9134(c); the October 2025 amendment through SR-FINRA-2025-013 added OHO Portal service completion language; the Hearing Officer has full FINRA Rule 9235 authority throughout the proceeding; witnesses subject to FINRA jurisdiction testify under oath administered by a court reporter or notary public; pre-hearing information exchanges are discretionary and submitted evidence does not enter the record unless ordered by the Hearing Officer or Panel; the hearing must be recorded by a court reporter with a written transcript prepared; the record consists of the FINRA Rule 9810(b) notice materials, the transcript, all evidence considered, and any other accepted documents with OHO as custodian; when a respondent fails to appear with notice the allegations may be deemed admitted and the order may be issued without further proceedings; when the Department of Enforcement fails to appear with notice the Hearing Panel may dismiss the proceeding; and the rule was last amended October 7, 2025 through SR-FINRA-2025-013 with six selected notices — 03-35, 08-57, 15-35, 17-22, 23-13, and 25-10.

Correction note for FINRA Rule 9820 entry: The entry states the hearing must be held within ten days. The correct current number under FINRA Rule 9830(a) is fifteen days. The FINRA Rule 9820 entry requires correction of this figure before publication.