FINRA notified member firms that the SEC approved FINRA's proposal to amend the FINRA By-Laws to: (i) expand the size of the National Adjudicatory Council ("NAC") by one member and require that the NAC have more non-industry members than industry members; (ii) extend the terms of future NAC members by one year; and (iii) update the process used for sending and counting ballots in the event of a contested election for certain industry members of the NAC.
The NAC acts on behalf of FINRA in several capacities, including: (i) presiding over disciplinary matters appealed to or called for review by the NAC, (ii) acting, when requested, in statutory disqualification and membership proceedings; (iii) considering the appeals of members seeking exemptive relief; and (iv) retaining the authority to review decisions in certain proceedings as set forth in FINRA's Code of Procedure.
The new By-Laws will be effective on August 11, 2016
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