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  • ARTICLE XII DISCIPLINARY PROCEEDINGS

    Sec. 1.  The Board shall have authority to establish procedures relating to disciplinary proceedings involving members and their associated persons.
    Amended by SR-NASD-97-71 eff. Jan. 15, 1998.
    Amended by SR-NASD-96-20 eff. July 11, 1996.

    Sec. 2.  Except as otherwise permitted under these By-Laws or the Act, in any disciplinary proceeding under the Rules of the Corporation, any member or person associated with a member shall be given the opportunity to have a hearing at which such member or person associated with a member shall be entitled to be heard in person or by counsel or by a representative as provided in the Rules of the Corporation. Such persons may present any relevant material in accordance with the Rules of the Corporation. In any such proceeding against a member or against a person associated with a member to determine whether the member or the person associated with a member shall be disciplined:
    (a) specific charges shall be brought;

    (b) such member or person associated with a member shall be notified of and be given an opportunity to defend against such charges;

    (c) a record shall be kept; and

    (d) any determination shall include a statement setting forth:

    (i) any act or practice, in which such member or person associated with a member may be found to have engaged or which such member or person associated with a member may be found to have omitted;

    (ii) the rule, regulation, or statutory provision of which any such act or practice, or omission to act, is deemed to be in violation;

    (iii) the basis upon which any findings are made; and

    (iv) the sanction imposed.

    Amended by SR-NASD-2007-023 eff. July 30, 2007.
    Amended by SR-NASD-97-71 eff. Jan. 15, 1998.
    Amended by SR-NASD-96-20 eff. July 11, 1996.