We Are FINRA Registered, Examination, Investigation and Enforcement Defense Lawyers
Attorney Pearce has helped firms and individuals with FINRA registration issues and the defense of FINRA investigations, examinations and enforcement proceedings, including appeals, nationwide for over 40 years from offices located throughout South Florida. If you are an advisor or broker dealing with FINRA issues, it is strongly encouraged to hire a FINRA defense attorney immediately.
Contact Us online or by telephone toll-free at 800-732-2889 (local 561-338-0037) for your Free Initial Consultation.
These are serious matter, as disciplinary actions resulting from these investigations and examinations can have a significant impact on any registered “member” and “associate member” career.
Sanctions for violations of industry rules and regulations or federal or state securities laws may result in: a censure, substantial fines, orders to repay customers (restitution) for their losses, suspensions and permanent lifetime bars from association with any FINRA broker-dealer. The issues in these investigations, examinations and disciplinary proceedings are very rule-intensive and can involve the minutiae of the securities industry. This is a unique forum where the deck is stacked against the “member” and “associated persons,” so experience is critical to your success. Do not jeopardize your career with inexperienced counsel in securities industry regulatory matters.
We Are Experienced FINRA Defense Lawyers Who Solve Registration Problems
All broker-dealers and their sales representatives in the United States are required to be registered (licensed) before they may do any securities business with the public. It can be difficult to register broker-dealers and individual representatives when those companies and individuals have had
Prior customer complaints, disciplinary actions, bankruptcies and other black marks on their record. Inadvertent nondisclosure of prior incidents could end the registration process or slow it down for many months. Early intervention and assistance by experienced counsel with this state agency could result in an expeditious resolution of your particular registration problem. We know from prior experience how to work with them to get the job done quickly and economically.
We Can Help You Avoid the Pitfalls of the FINRA Examination
FINRA regularly conducts examinations of its members main and branch offices. The routine examinations, which are generally announced, involve inspections of the firm’s financial, operational and sales practice compliance program. It also conducts surprise “cause” examinations triggered by arbitration referrals, its surveillance program, whistleblower tips and referrals from other regulators which can be more problematic. Generally, the larger brokerages have their own attorneys and/or compliance officers on staff to handle these routine or surprise examinations and inspections. We represent the smaller brokerage firms and branch offices who do not have that manpower during those examinations.
FINRA Investigations and Enforcement Proceedings are Serious and Require Skilled FINRA Defense Attorneys
Although FINRA is not a government agency and cannot throw you in jail for violation of industry rules and regulations, it is a self-regulatory organization, and all broker-dealers doing business with the public are members and subject to its rules, regulations, practices and procedures, including disciplinary actions for violations of its rules.
While these disciplinary actions are considered civil in nature (as contrasted with criminal actions), they are not necessarily conducted in a civil manner. More important, you do not have certain rights with FINRA that may exist with the United States Securities and Exchange Commission or another state regulator, including the right to refuse to answer a question on the grounds that your response may tend to incriminate you as guaranteed by the Fifth Amendment to the United States Constitution without consequences, including a bar from the industry pursuant to FINRA Rule 8210 for failure to cooperate with FINRA’s investigation.
Our law firm is well-versed in FINRA rules, practices and procedures.
Read: Stockbroker’s Introduction To FINRA Examinations and Investigations
What is a FINRA 8210 Letter?
FINRA generally initiates inquiries with brokerage firms and employees who are FINRA registered persons with the so-called FINRA 8210 letter. The letter advises you that FINRA is conducting an inquiry to determine whether there have been violations of the federal securities laws and industry rules and regulations. In the next paragraph, you are being requested, “Pursuant to FINRA Rule 8210,” to provide documents and/or to appear at a FINRA office to give “On-the-Record” testimony. Then you read the warning:
Under FINRA Rule 8210, you are obligated to respond to this request fully, promptly and without qualification. You are also obligated to supplement or correct any response that you later learned to have been incomplete or inaccurate. If you withhold any responsive documents or information, you must specifically identify what you are withholding and state the basis for your doing so. Any failure on your part to satisfy these obligations could expose you to sanctions, including a permanent bar from the securities industry.
This letter could have been precipitated by FINRA’s Automated Surveillance Program, your filing or a firms filing of a Form U-4 or Form U-5 (disclosing customer complaints, arrests, convictions, liens, bankruptcy, outside business activities, etc.), Whistleblower Complaints, customer complaints to FINRA’s Hotline or referrals from the SEC and other regulators.
You cannot ignore a FINRA 8210 letter, but if you do you will be automatically suspended and an enforcement proceeding will be initiated to permanently bar you from working in the securities industry. However, sometimes issues arise where compliance with the request can lead to waiver of your Fifth Amendment privilege against self-incrimination. So, you need professional advice on if and how you should respond to a FINRA 8210 letter. In a published Court opinion, Federal District Court Judge Janet C. Hall wrote:
“Since 1983, Attorney Pearce has continued his specialized education by attending hundreds of hours of seminars focused on SEC and Commodity Futures Trading Commission (“CFTC”) investigation and enforcement proceedings and the practices and procedures of the securities and commodities industry. He has received intensive training on broker-dealer practices and procedures (both front and back office) in the OTC market and the New York Stock Exchange (“NYSE”), the American Stock Exchange (“AMEX”), and the Chicago Board Options Exchange (“CBOE”). In short, Attorney Pearce has knowledge and skill gained over [40] years of specialized training on the minutiae of broker-dealer practices and procedures and SEC enforcement proceedings which could not be obtained by a competent practicing attorney through routine research or legal experience.”
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As stated above, the FINRA investigation can start with a simple customer complaint letter. The next thing you know you are trapped in your office or on the record at the FINRA offices giving testimony to FINRA examiners and attorneys who are all asking you questions in rapid-fire without the benefit of counsel. You cannot walk out of the room and refuse to answer questions because of the threats to bar you from the industry for failure to cooperate as required under FINRA Rule 8210. We are available from our Florida offices to consult with you immediately on any FINRA inquiry or compliance issue that may result in serious consequences to your career before it is too late!
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