麻花传媒

FINRA Proposes Rule Change to Delay Immediate Sanctions Pending SEC Review

Posted on July 3rd, 2025 at 9:57 AM
FINRA Proposes Rule Change to Delay Immediate Sanctions Pending SEC Review

From the desk of Jim Eccleston at 麻花传媒

The Financial Industry Regulatory Authority (“FINRA”) has proposed a rule change that would allow broker-dealers and registered representatives to seek a stay of certain disciplinary sanctions before those penalties take effect. AdvisorHub reports that the Securities and Exchange Commission (“SEC”) still must approve the proposal.

Under current FINRA rules, many sanctions, including suspensions and industry bars, take immediate effect upon issuance. As reported by AdvisorHub, firms and individuals have little recourse before pursuing an appeal with the SEC. The proposed amendment would authorize FINRA staff and adjudicators to delay the effectiveness of certain sanctions, giving respondents time to request a stay from the SEC or take other appropriate action.

This shift follows increased scrutiny over the immediacy of FINRA’s disciplinary actions, particularly in light of the Alpine Securities case. In June, the U.S. Supreme Court declined to hear Alpine’s appeal after a lower court declined to halt a FINRA expulsion before SEC review. Although FINRA maintains that the Alpine litigation remains ongoing, the proposed rule acknowledges concerns raised by the case regarding the fairness of immediate sanctions without SEC oversight.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra, sec

Return to Archive

TESTIMONIALS

Previous
Next

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

October 30, 2025
SEC Sues Former Franchise Group CEO Over $350 Million Hedge Fund Fraud

The Securities and Exchange Commission (SEC) filed a lawsuit against Brian Kahn, former CEO of Franchise Group Inc., alleging he defrauded investors of more than $350 million in a multi-year investment adviser fraud tied to the collapse of Prophecy Asset Management (Prophecy).

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.