FINRA Rule 8210 mandates that businesses and registered and related people disclose records, documents, and testimony to the regulator in the course of an inquiry. Because FINRA is a self-regulatory organization (SRO), it does not have the authority to issue subpoenas or compel disclosure.
As a result, it has established regulations that its member businesses and associated persons commit to following. The SEC examines and approves these rules. FINRA's principal method for gathering information, documents, and testimony to undertake investigations of member companies and individuals is FINRA Rule 8210.
Here are some of the FINRA rule 8210 frequently asked questions.
Q1. If I receive an 8210 letter, what should I do?
You should counsel an attorney familiar with managing FINRA investigations before having any significant interactions with FINRA. The investigation's overall ramifications, as well as what you may express to FINRA explicitly may be severe and you may only have a short time to reply. As a result, it is essential to obtain legal counsel early in the process so you may consider the best way to respond.
Q2. What if I am unable to supply the needed information within the time frame specified?
If you have left your previous firm and no longer have access to the needed information, FINRA may seek documents you do not have. In these instances, FINRA will usually allow one extension. However, if there is a good justification, you may be granted many extensions.
Q3. How long does it take for an 8210 investigation to be completed?
It changes depending on the investigation's underlying facts. You may not hear from FINRA for several months until you receive a letter stating that the investigation has been completed. In certain situations, you may get a notice from FINRA that further information is required after several weeks.