9269. Default Decisions
This rule is no longer applicable. NASD Rule 9269 has been superseded by FINRA Rule 9269. Please consult the appropriate FINRA Rule.
(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 or the Department of Market Regulation, 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.
(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 the Association; 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 the Association for purposes of SEC Rule 19d-1(c)(1). Unless otherwise provided in the default decision, the sanctions shall become effective on a date to be determined by the Association staff, except that a bar or expulsion shall become effective immediately upon the default decision becoming the final disciplinary action of the Association. The Association 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.
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Amended by SR-NASD-99-76 eff. Sept. 11, 2000. Amended by SR-NASD-98-58 eff. March 26, 1999. Amended by SR-NASD-98-57 eff. March 26, 1999. Adopted by SR-NASD-97-28 eff. Aug. 7, 1997. Selected Notices: 99-16, 00-56. |