(a) Issuance of Default Decisions
(1) The Hearing Officer may issue a default decision against a Respondent that fails to answer the complaint within the time afforded under
Rule 9215, or a Party that fails to appear at a pre-hearing conference held pursuant to
Rule 9241 of which the Party has due notice, or a Party that fails to appear any hearing that a Party is required to attend under the
Rule 9200 Series of which the Party has due notice.
(2) If the defaulting Party is the Respondent, the Hearing Officer may deem the allegations against that Respondent admitted. If the Defaulting Party is the Department of Enforcement, the Hearing Officer may issue a default decision ordering that the complaint be dismissed with prejudice.
(3) The Hearing Officer may order a Party that fails to appear at the pre-hearing conference or the hearing to pay the costs incurred by other Parties in connection with their appearance.
(4) The Office of Hearing Officers shall provide a copy of the default decision to each FINRA member with which a Respondent is associated.
(b) Contents of Decision
The contents of a default decision shall conform to the requirements of
Rule 9268(b).
(c) Review of Default Decision
Party may, for good cause shown, file a motion to set aside a default, dismissal, and the imposition of costs. Upon a showing of good cause, the Hearing Officer that entered the original order shall decide the motion. If the Hearing Officer that issued the original order is not available, the Chief Hearing Officer shall appoint another Hearing Officer to decide the motion.
(d) Final Disciplinary Action of FINRA; Effectiveness of Sanctions
If a default decision is not appealed pursuant to
Rule 9311 or called for review pursuant to
Rule 9312 within 25 days after the date the Office of Hearing Officers serves it on the Parties, the default decision shall become the final disciplinary action of FINRA for purposes of SEA Rule 19d-1(c)(1). Unless otherwise provided in the default decision, the sanctions shall become effective on a date to be determined by FINRA staff, except that a bar or expulsion shall become effective immediately upon the default decision becoming the final disciplinary action of FINRA. FINRA shall serve the decision on a Respondent by courier, facsimile or other means reasonably likely to obtain prompt service when the sanction is a bar or an expulsion.
