4th Circ. Says FINRA Challenge Must Go To SEC First

Law360, New York (December 20, 2016, 5:54 PM EST) -- The Fourth Circuit on Tuesday found microcap broker-dealer Scottsdale Capital Advisors Corp. can’t challenge the Financial Industry Regulatory Authority’s power in federal court, because Congress gave exclusive review of FINRA rules and decisions to the U.S. Securities and Exchange Commission.

The three-judge panel affirmed a Maryland federal judge’s decision dismissing Scottsdale’s challenge to FINRA’s authority to bring Securities Act charges, finding Scottsdale must first raise its claims in a FINRA disciplinary proceeding alleging it conducted unethical trades, then appeal to the SEC if the case doesn’t go its way.

“Congress unambiguously channeled Scottsdale’s claim — whether FINRA has exceeded its authority...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!