When a customer or broker-dealer firm alleges that an associated person has violated federal securities laws or FINRA, NYSE, or other regulator rules, FINRA will typically conduct an investigation.
Those investigations begin with FINRA sending a Rule 8210 request to the alleged violator. In response to an 8210 request, the individual will be requested to provide a written statement, information, and documents pertaining to the event or occurrence.
Advisors who receive 8210 requests have no choice but to respond in a timely manner and cooperate with the investigation or face disciplinary charges and proceedings before FINRA. Refusing to admit or deny the allegations or refusing to self-incriminate is not an option when faced with a FINRA investigation — doing so is considered a failure to cooperate and results in a permanent bar from the industry.
It is vital to take a strategic and proactive approach to respond to an 8210 request, as the result can range greatly — from a no-action letter to an in-person, on-the-record proceeding that results in sanctions.
Should you receive an 8210 request, the first step is to arm yourself with effective and knowledgeable counsel. Your attorney can help you build your strongest defense while ensuring that you are in compliance with FINRA’s rules and procedures.
AdvisorLaw provides representation against all threats, including FINRA Enforcement, state regulators, the CFP Board, firm compliance, and retail investors. Our services were created exclusively for financial advisors, and the consultation is always complimentary.
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