FINRA Proposes Amendments To By-Laws On NAC Member Removal

FINRA proposed to amend its By-Laws on the removal of National Adjudicatory Council ("NAC") members.

FINRA proposed, in addition to the existing removal provisions in Section 5.8 of the FINRA By-Laws, to allow an NAC member to be removed "for any cause affecting the best interests of the National Adjudicatory Council the sufficiency of which the FINRA Board shall be the sole judge." The proposal tracks with Section 1(b) of Article VII of the FINRA By-Laws concerning the removal of FINRA governors.

Comments on the proposal must be submitted no later than 21 days after its publication in the Federal Register.

Primary Sources

1. FINRA Notice of Filing and Immediate Effectiveness: Proposed Rule Change to Amend the By-Laws of FINRA Regulation, Inc. to Align the Grounds for Removal of NAC Members with an Existing Provision in FINRA By-Laws Related to the Removal of FINRA Governors

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