Understanding FINRA’S Rule 9552 Actions

Have you received a FINRA Rule 9552 letter from and wonder what it means? Or do you have questions about these Rule 9552 non-summary suspension proceedings? In the short video with this post, attorney Joel Beck discusses the basics of a Rule 9552 proceeding, which is often used by FINRA when a formerly registered or associated person fails to respond to their requests for information or documents made pursuant to FINRA Rule 8210.

In practice, after the FINRA staff has sent two or more Rule 8210 letters seeking information or documents but have not received the requested information/documents, they can initiate a non-summary suspension pursuant to Rule 9552. Here, the staff sends another letter outlining their prior attempts to obtain information/documents and the person’s failure to respond. This letter also advises the recipient that they have 21 days to correct the deficiency, and if they do not do so then they will be suspended from association with any member firm. The recipient can file a request for a hearing with the time allowed to prevent the suspension from becoming effective, and can then have an expedited hearing on the issue. If, however, the recipient defaults and does nothing (does not request a hearing and does not provide the requested documents/information) within three months of the issuance of the letter, the suspension becomes a bar, and the person is then barred from association with any member firm.

A Rule 9552 letter can have significant consequences and should not be treated lightly, nor ignored, unless you are comfortable with being barred from the broker-dealer industry, and possibly having that regulatory action affect other careers as well.