FINRA Investigations

What this video covers

• Why FINRA does not need a constitutional subpoena to compel information, testimony, or records, because it is a private self-regulatory organization (SRO) operating through contractual authority
• What FINRA's investigative-testimony authority can compel, including written or electronic information, testimony at a deposition or on-the-record (OTR) interview, and inspection or copying of books and records
• How the two-year jurisdictional tail applies to former associated persons (APs), and why the clock runs from termination of registration rather than the date of the underlying conduct
• Why failing to respond is a separate violation that can trigger immediate suspension and conversion to a permanent bar after 90 days, often producing a harsher sanction than the underlying conduct
• How FINRA adjudicators fit together, including the Hearing Officer, Hearing Panel, National Adjudicatory Council (NAC), and FINRA Board
• The sanctions vocabulary distinction between individuals and firms, including why individuals are barred while member firms are expelled, and why FINRA fines have no statutory cap
• What BrokerCheck discloses, how the Uniform Termination Notice for Securities Industry Registration (Form U5) becomes public after three business days, how the Uniform Application for Securities Industry Registration or Transfer (Form U4) explanation window works, and how the payment-of-fines rule permits summary suspension or cancellation after seven days' notice