Regulatory FrameworkQuestion 378 of 398
FINRA's Code of Procedure (the Rule 8000 and 9000 series) primarily governs:
a.How FINRA investigates and disciplines members for rule violations
b.How customers and firms arbitrate monetary disputes
c.How firms register new associated persons
d.How issuers register securities with the SEC
Explanation
The Code of Procedure governs FINRA's disciplinary process: how alleged rule violations are investigated, how complaints are brought, hearings held, and sanctions imposed. It is distinct from the Code of Arbitration Procedure, which handles monetary disputes between parties such as customers and firms. Sanctions can include fines, suspensions, and bars from the industry.
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