The Financial Industry Regulatory Authority says it is taking steps to modernize the process for proceedings involving its Office of Hearing Officers. (OHO)
In Regulatory Notice 25-10, FINRA said it has adopted amendments to require the use of a secure electronic portal in these proceedings. The portal was developed to replace email as the primary method for the filing and service of documents. The amendments take effect on October 7.
According to FINRA, the amendments are aimed at modernizing service and filing processes and promoting efficiency in a matter that protects investors and the public interest.
OHO, an office of impartial adjudicators, is an independent unit within FINRA that.serves as the authority’s adjudicatory forum for disciplinary and expedited proceedings, including hearings for temporary and permanent cease and desist orders.
Starting in 2020, FINRA permitted email service and filing in OHO proceedings, and said the portal will move toward a more efficient electronic format.
“To further improve efficiency in OHO proceedings, FINRA developed a secure web-based system that is accessible by parties and their representatives in proceedings before OHO (OHO Docket Portal),” the notice states. “Invited participants are permitted to access the secure web-based system to submit documents, serve other parties, and view their case information and documents. When a party submits pleadings or documents through the OHO Docket Portal, the party accomplishes both filing with OHO as well as service on the other parties.”
The OHO Docket Portal will allow parties to view and retrieve all filings at a single location in chronological order, easily verify receipt of documents submitted, and provide a calendar of deadlines and key dates.
FINRA noted two exceptions to the portal requirement. One involves complaints. FINRA rules do not allow it to serve a complaint on a respondent electronically, Under the amendments, FINRA will file a complaint through the OHO Docket Portal but will not serve the complaint through the portal. The only permissible methods for FINRA to serve a complaint are by personal service, mail or courier.
The second exception is for service of papers in default cases, which will continue to be by personal service, mail or courier. When the respondent in a default case 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 Docket Portal or otherwise have access to it.
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