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FINRA Rule 8210 Lawyers
Contents
- 1 The Financial Industry Regulatory Authority (FINRA)
- 2 Understanding FINRA Rule 8210
- 2.1 What triggers a Rule 8210 Notice
- 2.2 What to do upon receiving a Rule 8210 notice
- 2.3 Where to find FINRA defense attorneys
- 2.4 FINRA Rule 8210 Lawyers
- 2.5 What to do upon receiving a Rule 8210 notice
- 2.6 Talk to your firm
- 2.7 Request an extension
- 2.8 Contact a FINRA defense attorney
- 2.9 Write a response
- 2.10 Where to find FINRA defense attorneys
The Financial Industry Regulatory Authority (FINRA) is charged with the responsibility of monitoring and overseeing the function of brokers and securities firms within the United States. With authority granted by Congress, FINRA accomplishes this oversight by establishing regulations that apply to different sectors of the financial industry. That includes the securities industry.
The goal of the regulation and accompanying oversight is to promote integrity and honesty with the financial community. Doing so makes it harder for those with less than honorable intentions to abuse the trust placed in them by investors. When and as FINRA identifies a possible breach of established laws and regulations, legal action is likely to ensue.
FINRA’s Structure
The body functions with the support of a Board of Governors. This Board is headed by a Chief Executive Officer proper and the Chief Executive Officer of NYSE Regulations. 11 are designated as Public Governors. There are also three governors representing small firms, one for mid-sized firms, and three for large firms. An independent dealer and a floor member governor round out the Board.
The Scope of FINRA
FINRA approaches the task of maintaining integrity in the financial industry in several ways. One has to do with monitoring activities in each of the financial markets. Anything that shows signs of being questionable practices or actions is monitored closely. If the evidence indicates fraudulent activity, steps are taken to stop the action and hold the responsible parties accountable.
Investor education is another function fulfilled by FINRA. Resources are provided for investors who are just beginning to build portfolios, those who are interested in learning more about different markets, and even seasoned investors. The idea is that more informed investors are less likely to be taken in by some type of financial scam. They will also be more adept at spotting questionable practices and reporting them if necessary.
Compliance and the enforcement of current regulations is also
part of what FINRA does. Brokers agree to abide by those regulations, as well as any type of investment firm. If a firm or an independent broker fails to do so, FINRA has the authority to take action. When investors file claims, FINRA investigates those claims and imposes disciplinary measures if the findings indicate action is warranted.
Crafting New Rules
While education, monitoring, and enforcing current regulations are all part of FINRA’s work, crafting new rules related to the securities industry is also an integral function. The scope of those new rules impact investors, member brokers, investment firms, and even the Securities and Exchange Commission. New rules are typically drafted when and as needed, and must be reviewed by FINRA committees to ensure they are not in conflict with other regulations. Once the FINRA committee reviews are completed, the proposed rules are submitted to the SEC for further review and possible implementation.
Arbitration
Arbitration is also one of the ways FINRA carries out its responsibilities. The arbitration may be between investment firms and their employees, investors and brokers, or between investors and investment firms. Arbitration does not eliminate the right of either party to file class action suits if desired.
With 20 regional offices and official headquarters in Washington, DC and New York City, FINRA seeks to prevent corruption of the investment process. Parties who are facing charges of misconduct can seek help from a FINRA regulatory defense attorney.
Understanding FINRA Rule 8210
The official name of FINRA rule 8210 is “Provision of Information and Testimony and Inspection and Copying of Books.” The rule states that FINRA investigators can subpoena you, require you to testify on record, and compel you to produce critical documents. Many people think that FINRA is a government agency. Contrary to that, FINRA is a private institution. It is, therefore not bound, by the 5th Amendment. FINRA Rule 8210 makes it mandatory to respond to a Rule 8210 notice:
“No member or person shall fail to provide information or testimony or to permit an inspection and copying of books, records, or accounts pursuant to this Rule.”
There are severe penalties for failure to respond to a Rule 8210 notice. Usually, you will be suspended from the industry for 90 days. Within the 90 days, you have the opportunity to cooperate with the investigators and reverse the suspension. If you don’t cooperate, you will be banned from the industry permanently at the end of the 90 days.
What triggers a Rule 8210 Notice
Receiving a rule 8210 indicates that FINRA is suspecting that you have engaged in unlawful activities and is, therefore, launching an investigation into your conduct. The suspicion can arise due to a wide range of factors such as unusual activity in your clients’ accounts and complaints from your clients. You will be required to answer questions and avail documents relevant to the investigation.
What to do upon receiving a Rule 8210 notice
A rule 8210 notice should not send chills down your spine. Instead, the situation calls for calm and composure. Many people have been able to carry on with their normal business activities despite FINRA investigations.
Talk to your firm
When you receive a FINRA notice, you should inform your firm especially the managers and the compliance department. FINRA often sends a copy of the notice to them. If you don’t notify your firm, and they learn about the investigations later, they might think you are hiding something. Furthermore, informing your firm will make it easy for you to get critical documents.
Request an extension
FINRA summons often have very short deadlines. Nevertheless, extensions are usually granted on request. When requesting an extension, it is important to be humble and coherent. Give reasons why you deserve an extension. For example, you can say that you will use the extension to gather the requested documents or seek legal representation.
Contact a FINRA defense attorney
Consulting a lawyer who understands FINRA disciplinary proceedings will go a long way towards getting over the case. You can even have an attorney representing you during the disciplinary sitting. Some firms and broker-dealers sacrifice their employees to save their interests. This makes it essential for you to have an attorney to take care of your interests even when your firm or broker-dealer has hired a lawyer.
Write a response
This is the most significant step in the process. After gathering all the requested documents, it is now time to sit down and write a detailed response. The written response can change the course of the investigation. When writing this response, it is essential to have a FINRA defense attorney by your side.
Where to find FINRA defense attorneys
Our attorneys have handled numerous FINRA defense cases in the past. We promise a no-nonsense FINRA defense and timely communication. Furthermore, we give honest and punctual case assessments. Contact us today
FINRA Rule 8210 Lawyers
The official name of FINRA rule 8210 is “Provision of Information and Testimony and Inspection and Copying of Books.” The rule states that FINRA investigators can subpoena you, require you to testify on record, and compel you to produce critical documents. Many people think that FINRA is a government agency. Contrary to that, FINRA is a private institution. It is, therefore not bound, by the 5th Amendment. FINRA Rule 8210 makes it mandatory to respond to a Rule 8210 notice:
“No member or person shall fail to provide information or testimony or to permit an inspection and copying of books, records, or accounts pursuant to this Rule.”
There are severe penalties for failure to respond to a Rule 8210 notice. Usually, you will be suspended from the industry for 90 days. Within the 90 days, you have the opportunity to cooperate with the investigators and reverse the suspension. If you don’t cooperate, you will be banned from the industry permanently at the end of the 90 days.
What triggers a Rule 8210 Notice
Receiving a rule 8210 indicates that FINRA is suspecting that you have engaged in unlawful activities and is, therefore, launching an investigation into your conduct. The suspicion can arise due to a wide range of factors such as unusual activity in your clients’ accounts and complaints from your clients. You will be required to answer questions and avail documents relevant to the investigation.
What to do upon receiving a Rule 8210 notice
A rule 8210 notice should not send chills down your spine. Instead, the situation calls for calm and composure. Many people have been able to carry on with their normal business activities despite FINRA investigations.
Talk to your firm
When you receive a FINRA notice, you should inform your firm especially the managers and the compliance department. FINRA often sends a copy of the notice to them. If you don’t notify your firm, and they learn about the investigations later, they might think you are hiding something. Furthermore, informing your firm will make it easy for you to get critical documents.
Request an extension
FINRA summons often have very short deadlines. Nevertheless, extensions are usually granted on request. When requesting an extension, it is important to be humble and coherent. Give reasons why you deserve an extension. For example, you can say that you will use the extension to gather the requested documents or seek legal representation.
Contact a FINRA defense attorney
Consulting a lawyer who understands FINRA disciplinary proceedings will go a long way towards getting over the case. You can even have an attorney representing you during the disciplinary sitting. Some firms and broker-dealers sacrifice their employees to save their interests. This makes it essential for you to have an attorney to take care of your interests even when your firm or broker-dealer has hired a lawyer.
Write a response
This is the most significant step in the process. After gathering all the requested documents, it is now time to sit down and write a detailed response. The written response can change the course of the investigation. When writing this response, it is essential to have a FINRA defense attorney by your side.
Where to find FINRA defense attorneys
You can contact Farar and Lewis LLP for the best FINRA legal representation. Our attorneys have handled numerous FINRA defense cases in the past. We promise a no-nonsense FINRA defense and timely communication. Furthermore, we give honest and punctual case assessments. Contact us today