The Financial Industry Regulatory Authority has announced the process for filling upcoming vacancies on its National Adjudicatory Council. (NAC)
The NAC is a FINRA committee that reviews initial decisions rendered in FINRA disciplinary and membership proceedings. It may affirm, dismiss, modify, or reverse any finding, or remand for further proceedings. The NAC is appointed by the FINRA Board of Governors to review all disciplinary decisions issued by FINRA hearing panels.
In an Election Notice published last week, FINRA said it was notifying members of an upcoming election to fill two large firm seats and one mid-size firm seat on the NAC. It also announced the nominees for the vacancies and described the procedures to be included as an additional candidate on the ballot.
The Nominating Committee said it had nominated the following individuals for the open NAC seats:
Large Firm Member Nominees:
MaryBeth Findlay — Wells Fargo Securities, LLC
Scott Kursman — Citigroup Global Markets, Inc.
Mid-Size Member Nominee:
Kim Chapman — Berthel, Fisher & Company Financial Services, Inc.
The NAC is made up of 15 members—seven industry members and eight non-industry members. The seven industry members of the NAC include two small firm, one mid-size firm, two large firm and two at-large industry members. Of the eight non-industry NAC members, at least three are public members.
If more than one candidate is certified for any of the vacancies, the election will be deemed contested and FINRA will send an official Election Notice by e-mail. FINRA’s election agent will follow up with voting instructions to the executive representatives of eligible large and mid-size FINRA member firms on or about November 15, 2023.
A person who has not been nominated may be included on a ballot for an election to fill an open large firm seat or mid-size firm seat on the NAC by presenting petitions in support of their nomination that are executed by 3 percent of the members entitled to vote and then certified. Petitions must be submitted by Nov. 9.
The NAC meets primarily in person four times a year several weeks prior to each FINRA Board of Governors meeting. NAC members are expected to attend meetings and will be requested to serve on appeal panels. The elected individuals will serve four-year terms on the NAC beginning in January 2024.
The attorneys at Lewitas Hyman understand the complexities that come with being the subject of a regulatory inquiry by the SEC, FINRA, and other self-regulatory organizations, and we have the experience to guide and advise you through any type of regulatory investigation. If you are the subject of a regulatory proceeding, contact us at (888) 655-6002 or through our online contact form for a free consultation.
