NFA proposed several amendments (see here) to rules governing the Business Conduct Committee ("BCC") disciplinary process.
Under the proposed amendments to Compliance Rule Part 3, NFA would revise:
- Rule 3-6 ("Answer"), to state that failure to submit a timely Answer will (i) be deemed an admission to the conclusions stated in the Complaint, (ii) be considered a waiver of hearing and (iii) allow the BCC to issue a default decision against the Respondent, with the option to appeal 15 days following the date of the default decision.
- Rule 3-7 ("Appointment of Hearing Panel"), so that a member of the Hearing Committee may not participate in a Hearing Panel if such member has a potential conflict of interest;
- Rule 3-10 ("Decision"), to allow a decision to incorporate by reference the related complaint, where appropriate; and
- Rule 3-14 ("Penalties"), to double the maximum monetary fine from $250,000 to $500,000 for each violation.
Additionally, the proposal would eliminate Compliance Rule 3-2 ("Termination").
Primary Sources
Originally published May 22, 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
