Sutherland Study Finds That It Sometimes Pays To Litigate Against FINRA (Formerly NASD)

Sutherland Asbill & Brennan LLP has completed its annual analysis of litigated disciplinary proceedings brought by the Financial Industry Regulatory Authority (FINRA, formerly NASD) against broker-dealer firms and registered representatives. The study, authored by partner Brian L. Rubin and associate Christian J. Cannon, analyzes cases from January 2006 through June 2007 where the self-regulatory organization charged respondents with violating NASD rules and U.S. Securities and Exchange Commission rules and statutes.

What follows are among the findings of the study:

Trials

FINRA disciplinary proceedings begin when a complaint is filed, and culminate in a hearing before a Hearing Panel that comprises two current or former industry members and one Hearing Officer, who is a FINRA employee. The Hearing Officer serves as Chair of the Hearing Panel and oversees the proceedings with authority to make all rulings about the schedule, the procedures, and what evidence