FINRA 8210 Requests, Investigations & Hearings

Getting a letter from the Financial Industry Regulatory Authority (FINRA) can be concerning, unsettling, and downright anxiety inducing. Whether you are a registered representative, affiliated person, financial advisor, registered investment advisor, or broker-dealer, receiving a FINRA 8210 request means the Financial Watchdog is looking closely at your conduct or the conduct of your firm. The stakes can be high with monetary sanctions, license suspensions, and even permanent bars on the line. Not responding at all or responding improperly can put your hard-earned license and career at risk. You need experienced legal guidance to help you through the process from the start and through final resolution.

The New York FINRA attorneys at Malecki Law have decades of experience representing industry professionals during all phases of state, federal, regulatory, and self-regulatory investigations and enforcement actions. If you received a Rule 8210 request, we can help you identify the areas of potential risk, respond strategically to the regulator’s requests, and help mitigate the impact to your professional career.

FINRA Rule 8210 gives FINRA broad authority to seek to obtain information from registered representatives and member firms when FINRA suspects that improper or violative conduct has occurred. Essentially a subpoena, it requires the recipient to produce documents, communications, and other records. Some 8210 Requests even require individuals to provide testimony under oath in a formal investigative setting. The scope of these requests can be wide and include both professional and personal areas, and failure to respond can result in severe consequences, including a permanent bar from the industry.

The 8210 process is often triggered by a customer complaint, suspicious trading activity, a whistleblower report, an employee’s termination, a disclosed investigation into an employee’s conduct, or other red flags on a U4 or U5. The request may also relate to undisclosed outside business activities, private securities transactions, prior bankruptcies and liens, or criminal and civil misconduct. Due to FINRA’s stringent reporting and disclosure obligations, even minor reporting errors can lead to scrutiny and sanctions under this rule.

A New York City FINRA attorney at Malecki Law can assess the nature of the investigation request, determine the potential exposure to your professional licenses and career, and help you prepare a compliant yet protective response.

FINRA has great power to investigate conduct that it perceives to be in violation of FINRA rules. It is a membership organization and FINRA has the ability to end your membership. It is a privilege to have a license, not a right. Once an 8210 request is issued, FINRA can demand personal as well as business-related documents. They can require you to appear for on-the-record interviews and will pursue disciplinary action if they believe rules were violated.

By ignoring or failing to comply with the request, you can be permanently barred from the industry. Worse, that decision becomes public—FINRA publishes all sanctions on its website in monthly reports as well as on its BrokerCheck platform, and the public records are usually indexed by search engines. Worse yet, FINRA has extremely high search engine optimization, meaning FINRA’s publications usually appear at the top of search engines. Potential future employers, as well as the public at large, will more likely than not be able to easily find any publications regarding sanctions you receive from FINRA. This reputational damage will follow you indefinitely and impact your ability to work in financial services again.

Our New York FINRA attorneys work to avoid those consequences by intervening early in the investigation and to advocate for a resolution limiting harm to your professional licenses and reputation. In many cases, we resolve the matter through settlement negotiations with no accompanying disciplinary action.

If FINRA intends to pursue disciplinary charges after an investigation, they may offer you an opportunity to submit to settle. This is your chance to explain your legal and factual position and argue why no charges should be filed or the result should be a low fine and no suspension or a lesser one.

After charges are filed, the case proceeds to a disciplinary hearing before the Office of Hearing Officers at FINRA. Malecki Law has extensive experience representing clients at this stage, including through discovery, witness preparation, and hearing advocacy. Malecki Law can help you collect, organize, and produce documents in a FINRA-compliant manner. We can also educate you on helpful tips to keep in mind when providing testimony, whether in person or via video conference. Finally, the attorneys at Malecki Law are seasoned in crafting persuasive defenses and we understand how to challenge the evidence presented by FINRA and build a strong defense to protect your license, your livelihood, and your name.

FINRA investigations can move quickly and can be difficult to manage on your own without experienced counsel. Even well-meaning individuals can make mistakes during this process, especially if they are unfamiliar with FINRA’s rules, misinterpret the questions being asked, or unaccustomed to dealing with attorneys. Having a lawyer at your side not only protects your legal rights but ensures that your responses are carefully framed and have been well thought out.

Our New York FINRA attorneys bring decades of combined experience and a record of success to every case. We understand the rules, we know the regulators, and we zealously fight to get the best result possible for our clients. Whether you’re dealing with an initial 8210 request or preparing for a disciplinary hearing, we’ll be there to guide you through every step of the way.

If you’ve received a FINRA 8210 request, don’t wait to get help. What you do next can have lasting consequences for your career and reputation. The New York FINRA attorneys at Malecki Law are here to review your situation and help you make informed, strategic decisions. To schedule a free consultation, call us at (212) 943-1233 or email jenice@maleckilaw.com.