D.C. Circuit Issues Long-Awaited Decision In Alpine v. FINRA

On November 22, 2024, the D.C. Circuit issued a landmark decision in Alpine Securities Corporation v. FINRA, a case that examines the constitutional boundaries of the Financial Industry Regulatory Authority's (FINRA) enforcement powers. The ruling enjoined FINRA from expelling Alpine Securities Corporation without prior SEC review, emphasizing the limitations of expedited enforcement proceedings under the nondelegation doctrine.

The court's ruling reflects both a narrow procedural focus and broader constitutional implications. While the decision curtails FINRA's ability to expel members swiftly, it also opens the door to future challenges against self-regulatory organizations' (SROs) authority.