Finra Likely to Amend Expulsion Practices in Wake of Ruling

Finra, the financial industry’s self-regulator, is likely to avoid bringing expedited expulsion proceedings against members without SEC input after the D.C. Circuit said that doing so would probably exceed its authority.

But the ruling constraining the Financial Industry Regulatory Authority is a narrow one, considering that broker-dealer Alpine Securities Corp. attacked the private group’s enforcement power as unconstitutional, some attorneys said.

“Finra dodged a bullet,” said Adam Gana, managing partner of Gana Weinstein LLP.

The organization says it will make changes. Finra “believes it can implement measures to address the framework the court requires,” spokeswoman Rita De Ramos said ...