Amendments Clarify FINRA’s Right to Look at Firm Records, Books

The Securities and Exchange Commission has approved rule amendments that provide greater clarity about the Financial Industry Regulatory Authority’s right to examine and copy the records and books of its member financial firms and associated persons. Per amended Rule 8210, staff and adjudicators are entitled to copy and inspect “data in the “possession, custody or control” of members and any others that the SRO has jurisdiction over. This amended rule becomes effective on February 25.

The amendments makes clear that the records and books are covered by rule 8210.The phrase “possession, custody or control” was added to including concept of the existing body of case law that defines these three terms they way that they are used in the Federal Rules of Civil Procedure’s Rule 34. The broker-dealer and associated persons relationship is also clarified so it is obvious that all aspects of that affiliation are subject to a Rule 8210 request.

The SEC has also approved amendments to FINRA arbitration codes. This will let arbitrators order member firms and associated persons to serve as witnesses or produce documents without being subject to the subpoena process. Additionally, the amendments added procedures for non-parties to contest subpoenas and for non-parties and parties to oppose arbitrator orders of production.

Our FINRA arbitration lawyers represent individual and institutional investors. Contact Shepherd Smith Edwards and Kantas, LTD LLP today. You want to work with a securities firm that knows how to arbitrate your claim and has a history of helping clients recover their losses.

Subpoenas and Orders to Appear or Produce Documents, FINRA (PDF)

FINRA’s Information and Testimony Requests: SEC Approves Amendments to Rule 8210

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