Notice2025-15521
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Require Use of an Office of Hearing Officers Portal
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 15, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 156 (Friday, August 15, 2025)</title>
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[Federal Register Volume 90, Number 156 (Friday, August 15, 2025)]
[Notices]
[Pages 39440-39444]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15521]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103685; File No. SR-FINRA-2025-013]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Require Use of an Office of Hearing Officers
Portal
August 12, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 8, 2025, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act,\3\ which renders the proposal effective upon receipt of this
filing by the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to require use of an Office of Hearing Officers
(``OHO'') Portal.
The text of the proposed rule change is available on FINRA's
website at <a href="http://www.finra.org">http://www.finra.org</a> and at the principal office of FINRA.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Beginning in May 2020, FINRA adopted and extended temporary
amendments to allow for electronic service and filing by electronic
mail (``email'') in OHO and National Adjudicatory Council (``NAC'')
proceedings during the period in which FINRA's operations were impacted
by the COVID-19 pandemic.\4\ In June 2022, the Commission approved a
proposed rule change to make the temporary amendments permanent, with
some modifications.\5\
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\4\ See, e.g., Securities Exchange Act Release No. 88917 (May
20, 2020), 85 FR 31832 (May 27, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2020-015); Securities
Exchange Release No. 95281 (July 14, 2022), 87 FR 43335 (July 20,
2022) (Notice of Filing and Immediate Effectiveness of File No. SR-
FINRA-2022-018).
\5\ See Securities Exchange Act Release No. 95147 (June 23,
2022), 87 FR 38803 (June 29, 2022) (Order Approving File No. SR-
FINRA-2022-009). Those amendments became effective on August 22,
2022, on which date the temporary amendments expired. See Regulatory
Notice 22-16 (July 2022).
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FINRA has developed an electronic portal to replace email as the
primary method for the filing and service of documents in OHO
proceedings (the ``OHO Portal'').\6\ As described, below, access to the
OHO Portal will occur through accounts tied to the participant's email
address. The proposed rule change would require use of the OHO Portal
for the filing and service of documents in OHO matters.\7\ When a party
submits pleadings or
[[Page 39441]]
documents (other than the complaint \8\) through the OHO Portal, the
party would accomplish both filing with OHO as well as service on the
other parties. FINRA believes this is an appropriate next step to
further improve efficiency in OHO proceedings, which have allowed for
electronic filing and service by email in various proceedings since
2020.\9\
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\6\ OHO serves as FINRA's adjudicatory forum for disciplinary
proceedings and expedited proceedings, including hearings for
temporary and permanent cease and desist orders (``TCDOs'' and
``PCDOs''). FINRA has developed the OHO Portal for use in OHO
proceedings only. It has not been designed to support service or
filing of documents in NAC proceedings.
\7\ FINRA sometimes serves documents in its capacity as an
adjudicator. In other instances, FINRA is a party, for example, in
its capacity as the Department of Enforcement (``Enforcement'').
\8\ FINRA rules do not permit FINRA to serve a complaint on a
respondent electronically. Under the proposed rule change, FINRA
would file a complaint through the OHO Portal, but not serve the
complaint through the OHO Portal due to heightened fair process
concerns. The only permissible methods for FINRA to serve a
complaint are, and would continue to be under the proposed rule
change, by personal service, mail or courier. FINRA proposes
amendments to Rule 9131 (Service of Complaint) and Rule 9212(a)(1)
(Complaint Issuance--Requirements, Service, Amendment, Withdrawal,
and Docketing) to make clear that the complaint would continue to be
served pursuant to paragraphs (a) and (b) of Rule 9134 by personal
service, mail or courier.
\9\ See supra notes 4-5 and accompanying text.
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The OHO Portal provides a more secure method of exchanging
documents. Parties will file cases electronically with OHO using online
forms available on <a href="http://www.finra.org">www.finra.org</a> that integrate with the OHO Portal.
FINRA will ensure the integrity of electronic filing of new cases and
that access to the OHO Portal is limited to parties and their
representatives.\10\ To ensure that access to the OHO Portal is limited
to parties and their representatives, OHO staff will provision user
accounts for the parties and provide their credentials to them in an
encrypted email.\11\
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\10\ To ensure the integrity of electronic filing of new cases,
filers are required to complete a Completely Automated Public Turing
test to tell Computers and Humans Apart (CAPTCHA). New cases will be
manually screened by OHO staff before they are processed in the OHO
Portal.
\11\ First-time users will be prompted to change the default
password. A party or representative could contact OHO to request
additional user accounts to specify other individuals (such as legal
assistants and co-counsel) who should have access to the specified
case, and OHO staff will review those requests.
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The OHO Portal is expected to provide all parties with a more
efficient way to file, retrieve, organize and serve documents since the
OHO Portal will allow parties to view and retrieve all filings at a
single location in chronological order, easily verify receipt of
documents submitted, and, as noted above, accomplish both filing with
OHO as well as service on the other parties. The OHO Portal would also
provide a corresponding calendar of deadlines and key dates. FINRA has
tested the system and will provide step-by-step instructions and
training videos for filing new cases and using the OHO Portal.\12\
FINRA also intends to periodically update and enhance the OHO Portal.
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\12\ FINRA will provide this guidance in multiple formats,
including a full user manual, quick-reference guides, FAQs, and
instructional videos. The guidance will include information
regarding technical requirements for electronic filing, the
mechanics of uploading documents, acceptable file formats, and file
size limitations, among other things.
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To the extent an applicant, respondent or other party lacks the
ability to use or access technology needed to file, serve or accept
service through the OHO Portal, FINRA intends to provide reasonable
accommodations to them. The process for requesting an alternative
method of service or filing would be posted to FINRA's website, as well
as explained in the Notice of Complaint.\13\ If a party shows good
cause, the Hearing Officer, Hearing Panel, or Extended Hearing Panel
will order that filing or service occur by another method rather than
the OHO Portal.\14\
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\13\ When Enforcement serves a complaint on a respondent, the
Notice of Complaint tells the respondent how to file the answer and
other documents with OHO.
\14\ See FINRA Rule 9120(r) (defining ``Hearing Officer'');
FINRA Rule 9120(s) (defining ``Hearing Panel''); FINRA Rule 9120(j)
(defining ``Extended Hearing Panel''). The Hearing Officer, Hearing
Panel, or Extended Hearing Panel may order that filing or service
occur by another method rather than the OHO Portal on its own or
based on motion of a party.
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FINRA notes that the OHO Portal is similar to other electronic
filing systems. For example, the OHO Portal is similar in concept to
the FINRA Dispute Resolution Services (``DRS'') Portal, which parties,
arbitrators, mediators, and FINRA staff have used since 2016 to submit
and access arbitration case-related information.\15\ Likewise, the SEC
amended its rules in November 2020 to require electronic filing and
service of documents in administrative proceedings through its
Electronic Filings in Administrative Proceedings (eFAP) system.\16\
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\15\ See Securities Exchange Act Release No. 79296 (November 14,
2016), 81 FR 81844 (November 18, 2016) (Order Approving File No. SR-
FINRA-2016-029).
\16\ See Securities Exchange Act Release No. 90442 (November 17,
2020), 85 FR 86464 (December 30, 2020) (File No. S7-18-15,
Amendments to the Commission's Rules of Practice) (codified at 17
CFR 201 (2020)).
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Based on FINRA's experiences in requiring use of the DRS Portal for
arbitrations since 2016, and permitting email filing and service in OHO
proceedings since 2020, FINRA believes the proposal will further
enhance the efficiency of the adjudicatory process for all parties.
Accordingly, FINRA believes that it would be appropriate to require
parties to use the OHO Portal on a mandatory basis with reasonable
accommodations available to parties that lack the ability to use or
access it.\17\
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\17\ As discussed, the Hearing Officer, Hearing Panel or
Extended Hearing Panel may order filing or service by a means other
than the OHO Portal on motion of a party or sua sponte. See supra
note 14.
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Proposed Amendments To Require Use of the OHO Portal
The FINRA Rule 9000 Series sets forth the procedure for, among
other things, FINRA proceedings involving members, associated persons
or formerly associated persons. The Rule 9100 Series is of general
applicability to all proceedings set forth in the Rule 9000 Series,
unless a rule specifically provides otherwise.
FINRA Rule 9120 \18\ defines terms used in the Rule 9000 Series.
The proposed rule change would define ``OHO Portal'' as the secure web-
based system that is accessible by parties and their representatives in
proceedings before OHO.\19\ The definition would further state that the
OHO Portal allows invited participants to access a secure web-based
system to submit documents, serve other parties, and view their case
information and documents.\20\
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\18\ FINRA Rule 9120 (Definitions).
\19\ The OHO Portal will include several security features
including Transport Layer Security 1.2 encryption for data in
transit and security groups based authorization controls to limit
user access to certain features based on their role.
\20\ Rule 9120(w) will define ``OHO Portal'' and paragraphs (w)
through (dd) will be renumbered as paragraphs (x) through (ee).
FINRA notes that paragraphs (z) through (cc) were previously
renumbered as (aa) through (dd), effective May 18, 2018, but the
cross-references under FINRA Rules 9750 and 9760 have not been
updated. See Securities Exchange Act Release No. 83332 (May 25,
2018), 83 FR 25062 (May 31, 2018) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2018-021). FINRA thus proposes
technical amendments to Rules 9750 and 9760 to reflect the
renumbering of Rule 9120.
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FINRA Rule 9134 sets forth the methods of and procedures for
service. Paragraph (a) of Rule 9134 identifies three permissible
methods of service: personal service, mail and courier.\21\ Paragraph
(b) of Rule 9134 sets forth the procedures for service.\22\
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\21\ In addition to the methods stated in Rule 9134, other FINRA
rules permit additional methods of service. For example, some FINRA
rules permit service by facsimile or by email. See, e.g., FINRA Rule
9551(b) (Service of Notice of Pre-Use Filing Requirement).
\22\ Paragraph (b) is not being amended. For readability, the
proposed rule change would add language to paragraph (a) of Rule
9134 to make clear that proposed paragraph (c) sets forth the
methods of service in OHO proceedings.
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The proposed rule change would add paragraph (c) to Rule 9134 to
specifically address methods of and procedures for service in
proceedings before OHO, in light of the OHO Portal. As described in
turn below, under the
[[Page 39442]]
proposed rule change, other FINRA rules would be amended to incorporate
proposed new paragraph (c) of Rule 9134 by reference.\23\
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\23\ Where appropriate to retain the current scope of rules,
some cross-references to Rule 9134 would be amended to cross-
reference only paragraphs (a) and (b) of Rule 9134. See, e.g., FINRA
Rule 6490(d)(5), 9131(b), 9212(a)(1), 9522(a)(4), 9524(b)(3),
9525(e), 9526(c), 9551(b), 9552(b), 9553(b), 9554(b), 9555(b), 9620,
9630(e)(1) and (2); Funding Portal Rule 900(b)(3)(A)(iv) and
(b)(13)(E).
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Proposed paragraph (c)(1) of Rule 9134 would specify that service
through the OHO Portal is the required method of service for papers
served in proceedings before OHO unless otherwise ordered by the
Hearing Officer, Hearing Panel or Extended Hearing Panel,\24\ subject
to two specified exceptions. The first is for complaints, which as
discussed above, must continue to be served by personal service, mail
or courier.\25\ The second is for service of papers in default cases.
In default cases, where the respondent failed to answer the complaint,
failed to appear at an initial pre-hearing conference, or failed to
appear at a hearing, the respondent may not have registered with the
OHO Portal or otherwise have access to it. Thus, service of papers in
default cases must continue to be served by personal service, mail or
courier. Proposed paragraph (c)(2) would specify that service through
the OHO Portal is accomplished by submitting the papers to the OHO
Portal and is complete upon submission to the OHO Portal.\26\ Proposed
paragraph (c)(3) would state that service through the OHO Portal is
only permissible in proceedings before OHO and may not be used in any
other proceeding.
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\24\ See supra note 14.
\25\ See supra note 8.
\26\ This is consistent with service by email under the current
rules, which is complete upon sending the relevant documents or
information.
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FINRA Rule 9132(b) \27\ provides that an order, notice, or decision
issued by a Hearing Officer, Hearing Panel or Extended Hearing Panel
under the Rule 9200 Series shall be served pursuant to Rule 9134 or by
email. The proposed rule change would amend Rule 9132(b) to require
orders, notices and decisions issued by a Hearing Officer, Hearing
Panel or Extended Hearing Panel in an OHO proceeding to be served
through the OHO Portal, unless they have ordered an alternative method
of service. However, in cases of default, an order, notice, or decision
issued by a Hearing Officer, Hearing Panel or Extended Hearing Panel
shall be served pursuant to paragraphs (a) and (b) of Rule 9134
because, as noted above, the respondent in a default case may not have
access to the OHO Portal. Rule 9132(b) would continue to permit all
other Adjudicators to serve orders, notices or decisions pursuant to
paragraphs (a) and (b) of Rule 9134 or by email.\28\
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\27\ FINRA Rule 9132(b) (Service of Orders, Notices, and
Decisions by Adjudicator; How Served).
\28\ See FINRA Rule 9120(a) (defining ``Adjudicator'').
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FINRA Rule 9133(b) \29\ provides that papers other than complaints,
orders, notices or decisions be served by email, unless an alternative
method of service is ordered by the Adjudicator. The proposed rule
change would amend Rule 9133(b) to require parties in OHO proceedings
to serve such papers pursuant to Rule 9134(c). For all other
proceedings, the parties would continue to be required to serve
documents by email unless an alternative method of service is ordered
by the Adjudicator.
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\29\ FINRA Rule 9133(b) (Service of Papers Other Than
Complaints, Orders, Notices or Decisions; How Served).
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FINRA Rule 9135 \30\ sets forth the procedure for filing papers in
proceedings pursuant to the Rule 9000 Series. Paragraph (a) addresses
when to file. FINRA proposes to add subparagraph (1) to address when to
file documents in proceedings before OHO, and subparagraph (2) to
address when to file all other documents in other proceedings. Proposed
paragraph (a)(1) would state that complaints and other papers that are
required to be filed with OHO shall be filed through the OHO Portal and
deemed filed as of the date of submission to the OHO Portal, unless
otherwise ordered by the Hearing Officer, Hearing Panel or Extended
Hearing Panel.\31\ Proposed paragraph (a)(2) would retain the current
language in Rule 9135(a), which would continue to apply to the
timeliness of all other documents required to be filed pursuant to the
Rule 9000 Series.\32\
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\30\ FINRA Rule 9135 (Filing of Papers with Adjudicator:
Procedure).
\31\ Rule 9215 (Answer to Complaint) currently cross-references
Rule 9135 with respect to filing answers with OHO. FINRA proposes to
specifically cross-reference paragraph (a)(1) of Rule 9135 to align
with the proposed amendments to Rule 9135. FINRA notes that whether
a filing is timely would depend on whether it is received within the
time limit, if specified.
\32\ Under the proposed rule change, complaints would be filed
with OHO through the OHO Portal, but would be served on the
respondent(s) by personal service, mail or courier. For readability,
FINRA proposes to delete ``except complaints, which shall be deemed
timely filed upon mailing, delivery by electronic mail, or delivery
to the Office of Hearing Officers,'' and instead, to state
affirmatively in proposed Rule 9135(a)(1) that complaints shall be
deemed filed as of the date of submission to the OHO Portal. FINRA
also proposes to clarify in the second sentence of proposed
paragraph (a)(2) that documents shall be sent to ``the
Adjudicator,'' not to ``FINRA.''
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FINRA Rule 9135(b) addresses where to file. It provides that papers
shall be filed with OHO, but does not specify the method of filing. For
readability, the proposed rule change would create subparagraphs.
Paragraph (b)(1) would state that papers required to be filed with OHO
shall be filed through the OHO Portal unless an alternative method of
filing has been ordered by the Hearing Officer, Hearing Panel or
Extended Hearing Panel. It would also clarify that only papers required
to be filed with OHO shall be filed through the OHO Portal. As to all
other papers filed in other proceedings, paragraph (b)(2) would
continue to provide that such papers shall be filed where specified in
the Rule, or if not specified in the Rule, with the Adjudicator, unless
the Adjudicator orders otherwise.\33\
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\33\ For readability, FINRA proposes to replace the specific
references to the Rule 9200 and 9300 Series with a general reference
to the Rule 9000 Series.
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FINRA notes that Rule 9135(c) sets forth the requirement that
filing be accompanied by a certificate of service. This requirement
would continue to apply to papers filed and served through the OHO
Portal. For papers served through the OHO Portal, the certificate of
service would indicate that the OHO Portal was the method of service.
Likewise, Rule 9135(d) would continue to require parties in OHO
proceedings to file and serve the parties with their current email
address and contact information at the time of their first appearance,
and to file and serve any change in email address or contact
information during the course of the proceeding. Paragraph (d) was
originally added to support the transition to service and filing by
email.\34\ It will also support the transition to the OHO Portal by
ensuring that users have a valid email address, which is necessary to
register with the OHO Portal. To further support the use of electronic
methods of service, the proposed rule change would amend Rule 9141 \35\
to require that persons representing themselves or others provide an
email address at the time they make any filing or otherwise appear
before an Adjudicator.
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\34\ See supra note 5.
\35\ FINRA Rule 9141 (Appearance and Practice; Notice of
Appearance) sets forth the required contact information to include
in a Notice of Appearance.
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FINRA Rule 9146(l) \36\ provides that motions, oppositions,
responses, replies and any other filings shall comply with Rules 9133,
9135, 9136 and 9137. The proposed rule change would state that
[[Page 39443]]
filings required to be served in proceedings before OHO shall be served
pursuant to Rule 9134(c). It would also reiterate that service through
the OHO Portal shall be deemed complete upon submitting the documents
to the OHO Portal. For all other filings required to be served under
the Rule 9000 Series, the rule would continue to permit service by
email.
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\36\ FINRA Rule 9146(l) (Motions; General).
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The FINRA Rule 9550 Series sets forth the procedures for expedited
proceedings.\37\ Rule 9559(h)(2) sets forth the timing and method of
service requirements for the parties' exchange of proposed exhibit and
witness lists in advance of an expedited proceeding. Rule 9559(h)
permits email as a method of service. Under the proposed rule change,
exhibit lists and witness lists for expedited proceedings would be
served pursuant to Rule 9134(c) rather than by email, and service
through the OHO Portal shall be deemed complete upon submitting the
document(s) to the OHO Portal.\38\
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\37\ FINRA proposes changes within the Rule 9550 Series to make
clear that only paragraphs (a) and (b) of Rule 9134 apply to service
of suspension and other notices under those rules. Such notices
would not be submitted through the OHO Portal. See FINRA Rules
9551(b) (Service of Notice of Pre-Use Filing Requirement), 9552(b)
(Service of Notice of Suspension), 9553(b) (Service of Notice of
Suspension, Cancellation or Bar), 9554(b) (Service of Notice of
Suspension or Cancellation), and 9555(b) (Service of Notice).
Individuals who have received a notice under the Rule 9550 Series
may request a hearing with OHO for expedited proceedings under the
Rule 9550 Series by filing the request through the OHO Portal. In
expedited proceedings before OHO, documents would be filed and
served pursuant to the FINRA Rule 9130 Series (Service, Filing of
Papers), as proposed to be amended.
\38\ FINRA proposes a technical change to Rule 9559(s) to
specify that service by email applies to subparagraph (1) of Rule
9559(h).
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The FINRA Rule 9800 Series sets forth the procedures for TCDOs and
PCDOs. Rule 9830(b) sets forth the requirements for service of notice
of hearing by OHO on Enforcement and the respondent. Rule 9840(f) sets
forth the requirements for service of the Hearing Panel's decision and
any TCDO or PCDO on Enforcement and the respondent. Rule 9850 sets
forth the requirements for service of the Hearing Panel's response to a
written request to have a TCDO or PCDO modified, set aside, limited, or
suspended. These rules currently permit service via personal service,
overnight commercial courier, facsimile, or email. Under the proposed
rule change, these documents would be served pursuant to Rule 9134(c)
and service through the OHO Portal shall be deemed complete upon
submitting the document(s) to the OHO Portal.\39\
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\39\ FINRA also proposes a technical amendment to Rule 9850 to
change ``ten'' to ``10.''
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As discussed in detail in Item II.A.2., FINRA believes the proposed
rule change will further modernize the rules and make service and
filing in OHO proceedings more efficient and effective for all parties.
Access to internet and email is widely available and use of electronic
methods of service and filing is common practice in the courts and
other regulatory agencies, including the SEC.\40\ At the same time and
consistent with current rules that provide for email service and
filing, the proposed rule change would provide for alternative methods
of service for parties who lack the ability to use or access technology
needed to send or receive documents through the OHO Portal.\41\
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\40\ See supra note 16.
\41\ FINRA notes that the proposed rule change would impact all
members, including members that are funding portals or have elected
to be treated as capital acquisition brokers (``CABs''), given that
the funding portal and CAB rule sets incorporate the impacted FINRA
rules by reference. See Funding Portal Rule 900 and CAB Rule 900.
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FINRA has filed the proposed rule change for immediate
effectiveness. The operative date will be 60 days after the date of the
filing.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\42\ which requires, among
other things, that FINRA rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change is also
consistent with Section 15A(b)(8) of the Act,\43\ which requires, among
other things, that FINRA rules provide a fair procedure for the
disciplining of members and persons associated with members.
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\42\ 15 U.S.C. 78o-3(b)(6).
\43\ 15 U.S.C. 78o-3(b)(8).
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FINRA believes that the proposed rule change protects investors and
the public interest by requiring use of broadly available technology to
make service and filing processes more efficient and effective. FINRA's
disciplinary proceedings serve a critical role in providing investor
protection and maintaining fair and orderly markets by, for example,
sanctioning misconduct and preventing further customer harm by members
and associated persons. A more efficient disciplinary hearing process
serves the interests of both investors and respondents.
The proposed rule change promotes efficiency in these processes by
requiring service and filing that is currently conducted via email to
occur instead through the OHO Portal. For all parties, the OHO Portal
is an improvement to email as a method of service and filing for many
reasons, including that using the OHO Portal would consolidate the acts
of service and filing for most documents and enable the parties to keep
track of key correspondence and case documents in one place, among
other benefits. Thus, the proposed rule change would improve the
overall efficiency of OHO's operations by centralizing various
processes, including filing, service, and case management. These
amendments would also continue to reduce the reliance on paper
documents in favor of more efficient electronic formats.
The proposed rule change is intended to further modernize OHO
proceedings without imposing significant additional obligations on case
participants. Indeed, for the past several years, FINRA has laid the
foundation for transitioning to the OHO Portal by amending its rules to
permit service and filing by email--initially on a temporary and
eventually on a permanent basis--and by requiring parties to provide
and update their contact information, including their email address,
during the course of a proceeding.\44\ FINRA thus anticipates a smooth
transition from email to the OHO Portal as the primary method of
service and filing in OHO proceedings.
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\44\ See supra notes 4-5 and accompanying text.
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While promoting efficiency, the proposed rule change also includes
safeguards to ensure fairness. For example, FINRA would continue to
maintain procedures in place for persons who lack the ability to use or
access technology necessary to use the OHO Portal. Such parties would
have the ability to request relief from the Hearing Officer, Hearing
Panel or Extended Hearing Panel to file or serve documents by another
method. Based on FINRA's experience of operating under the amendments
permitting service and filing by email since mid-2020, however, FINRA
anticipates that requests to use non-electronic methods of service will
continue to be rare. In addition, the proposed rule change balances the
interests of fairness and efficiency. As discussed, service of some
documents, including complaints and papers in default cases, will
continue to occur by personal service, mail or courier, rather than
through the OHO Portal, thus ensuring there is satisfactory notice and
fair process.
Thus, the proposed rule change represents a significant step toward
modernizing the service and filing processes in a manner that will
protect investors and the public interest by
[[Page 39444]]
promoting efficiency while preserving fair process in OHO proceedings.
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule changes will
impact current and former member firms and associated persons,
including current and former registered persons and their counsel.
These individuals would be respondents or other related parties to
proceedings before OHO. None of the proposed rule changes will directly
impact the customers of those firms. The number of new OHO filings has
ranged from 45 to 57 filings between 2022 and 2024 with an average of
52 filings per year. The majority of respondents in these filings
consist of current or former registered persons.
The OHO Portal is expected to provide to all parties benefits from
efficiencies in filing, retrieving, organizing, and serving documents.
As discussed above, the OHO Portal will allow parties to view and
retrieve all filings at a single location in chronological order,
easily verify receipt of documents submitted, and accomplish both
filing with OHO as well as service on the other parties. The OHO Portal
would also provide a corresponding calendar of deadlines and key dates.
Such benefits will likely accrue to all parties who use the portal. The
proposed rule change would also improve the overall efficiency of OHO's
operations by centralizing various processes, including filing,
service, and case management.
FINRA anticipates that the requirement to use the OHO Portal will
likely not impose any material costs on parties. As discussed above,
many parties to OHO proceedings would already be familiar with
electronic methods of service and filing, as it is a common practice in
the courts and other regulatory agencies, including the SEC. FINRA has
allowed for electronic filing and service by email in OHO proceedings
since 2020.\45\ Although parties may expend some additional time and
effort to learn the new OHO Portal system, as discussed above, OHO will
support the transition by providing step-by-step instructions and
training videos on <a href="http://www.finra.org">www.finra.org</a> as well as user support through
various means.\46\
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\45\ See supra notes 4-5 and accompanying text.
\46\ See supra note 12 and accompanying text.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \47\ and Rule 19b-
4(f)(6) thereunder.\48\
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\47\ 15 U.S.C. 78s(b)(3)(A).
\48\ 17 CFR 240.19b-4(f)(6).
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FINRA believes that the filing is appropriately filed pursuant to
Rule 19b4(f)(6)(iii) under the Act \49\ because the proposed rule
change will require use of the OHO Portal instead of email as the
primary method of filing and service of most papers in OHO proceedings.
The proposed amendments are generally consistent with existing
procedures, including with respect to service of the complaint, which
will continue to occur by hand, mail or courier. Likewise, the method
for requesting relief from the requirement to use the OHO Portal will
be the same as under the current rules with respect to the ability to
obtain relief from the requirement to file and serve documents by
email. As noted above, the Commission previously approved the use of
email for filing and service of most documents in OHO proceedings.\50\
FINRA believes the proposed changes will further improve efficiency in
OHO proceedings in a manner similar to current email-based processes,
since access to the OHO Portal will occur through accounts tied to the
participant's email address.
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\49\ 17 CFR 240.19b-4(f)(6)(iii).
\50\ See supra notes 4-5 and accompanying text.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#b9cbccd5dc94dad6d4d4dcd7cdcaf9cadcda97ded6cf"><span class="__cf_email__" data-cfemail="5b292e373e76383436363e352f281b283e38753c342d">[email protected]</span></a>. Please include
File Number SR-FINRA-2025-013 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2025-013. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the filing will be available for inspection and copying at
the principal office of FINRA. Do not include personal identifiable
information in submissions; you should submit only information that you
wish to make available publicly. We may redact in part or withhold
entirely from publication submitted material that is obscene or subject
to copyright protection.
All submissions should refer to File Number SR-FINRA-2025-013 and
should be submitted on or before September 5, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\51\
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\51\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-15521 Filed 8-14-25; 8:45 am]
BILLING CODE 8011-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.