View Whole SectionText only Print Print Manager Link
Previous Next

9143. Ex Parte Communications

(a) Prohibited Communications
Unless on notice and opportunity for all Parties to participate, or to the extent required for the disposition of ex parte matters as authorized by the Rule 9000 Series:
(1) No Party, or counsel to or representative of a Party, or Interested FINRA Staff shall make or knowingly cause to be made an ex parte communication relevant to the merits of a proceeding to an Adjudicator who is participating in a decision with respect to that proceeding, or to a FINRA employee who is participating or advising in the decision of an Adjudicator with respect to that proceeding; and
(2) No Adjudicator who is participating in a decision with respect to a proceeding, or no FINRA employee who is participating or advising in the decision of an Adjudicator with respect to a proceeding shall make or knowingly cause to be made to a Party, a counsel or representative to a Party, or Interested FINRA Staff an ex parte communication relevant to the merits of that proceeding.
(b) Disclosure of Prohibited Communication
An Adjudicator who is participating in a decision with respect to a proceeding, or a FINRA employee who is participating or advising in the decision of an Adjudicator, who receives, makes, or knowingly causes to be made a communication prohibited by this Rule shall place in the record of the proceeding:
(1) all such written communications;
(2) memoranda stating the substance of all such oral communications; and
(3) all written responses and memoranda stating the substance of all oral responses to all such communications.
(c) Remedies
Upon receipt of a communication made or knowingly caused to be made by any Party, any counsel or representative to a Party, or any Interested FINRA Staff in violation of paragraph (a)(1), FINRA or an Adjudicator may, to the extent consistent with the interests of justice, the policies underlying the Exchange Act, and the FINRA rules, order the Party responsible for the communication, or the Party who may benefit from the ex parte communication made, to show cause why the Party's claim or interest in the proceeding should not be dismissed, denied, disregarded, or otherwise adversely affected by reason of such ex parte communication. All participants to a proceeding may respond to any allegations or contentions contained in a prohibited ex parte communication placed in the record. Such responses shall be placed in the record.
(d) Timing
In a disciplinary proceeding governed by the Rule 9200 Series and the Rule 9300 Series, the prohibitions of this Rule shall apply beginning with the authorization of a complaint as provided in Rule 9211, unless the person responsible for the communication has knowledge that the complaint shall be authorized, in which case the prohibitions shall apply beginning at the time of his or her acquisition of such knowledge.
(e) Waiver of Ex Parte Prohibition
(1) Offer of Settlement
If a Respondent submits an offer of settlement under Rule 9270, the submission constitutes a waiver by such Respondent of any claim that the prohibitions against ex parte communications were violated by a person or body in connection with such person's or body's participation in discussions regarding the terms and conditions of the offer of settlement and the order of acceptance, or other consideration of the offer of settlement and order of acceptance, including acceptance or rejection of such offer of settlement and order of acceptance.
(2) Letter of Acceptance, Waiver, and Consent
If a member or a person associated with a member submits an executed letter of acceptance, waiver, and consent under Rule 9216(a), the submission constitutes a waiver by such member or person associated with a member of any claim that the prohibitions against ex parte communications were violated by a person or body in connection with such person's or body's participation in discussions regarding the terms and conditions of the letter of acceptance, waiver, and consent, or other consideration of the letter of acceptance, waiver, and consent, including acceptance or rejection of such letter of acceptance, waiver, and consent.
(3) Minor Rule Violation Plan Letter
If a member or a person associated with a member submits an executed minor rule violation plan letter under Rule 9216(b), the submission constitutes a waiver by such member or person associated with a member of any claim that the prohibitions against ex parte communications by a person or body in connection with such person's or body's participation in discussions regarding the terms and conditions of the minor rule violation plan letter, or other consideration of the minor rule violation plan letter, including acceptance or rejection of such minor rule plan violation letter.
Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Amended by SR-NASD-97-81 eff. Jan. 16, 1998.
Adopted by SR-NASD-97-28 eff. Aug. 7, 1997.

Selected Notice: 08-57.

Previous Next