The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees brokerage firms and registered representatives in the securities industry. One of the tools that FINRA uses to carry out its regulatory functions is the FINRA Rule 8210 request.
FINRA 8210 Requests Are A Common Investigative Tool
FINRA Rule 8210 is a regulation that allows the organization to request information and documents from firms and individuals that are registered with FINRA or are required to be registered. This can include information related to a specific investigation or examination, or more generally, information that FINRA deems necessary to carry out its regulatory functions. The request can be for books, records, documents, and other information in any medium (e.g., electronic or paper), and can include oral testimony.
When a FINRA 8210 request is received, the firm or individual is required to provide the requested information and documents within the specified timeframe. Failure to comply with a FINRA 8210 request can result in disciplinary action, including fines or suspension of registration.
The FINRA Rule 8210 request can be issued in different contexts such as a routine examination, investigation, surveillance, or complaint. In the case of a routine examination, the request is used to obtain information and documentation that FINRA uses to evaluate the firm’s compliance with regulatory requirements. In the case of an investigation, the request is used to gather evidence of potential violations of securities laws or FINRA rules.
In the case of surveillance, the request is used to gather information on a firm or individual’s activities and to identify potential compliance or supervisory issues. In the case of a complaint, the request is used to gather information related to a specific customer complaint and to determine whether a violation of FINRA rules has occurred.
When a FINRA 8210 request is issued, it will be directed to a specific individual or firm and will typically include a detailed list of the information and documents that are being requested. The recipient will then have a certain amount of time, usually between 10 and 30 days, to provide the requested information.
The Response to A FINRA 8210 is Critical
It’s important to note that the recipient of a FINRA 8210 request should consult with legal counsel before responding, as the request may implicate legal privileges or other protections. For example, the request may require the production of documents that are protected by attorney-client privilege or work product doctrine. In such cases, the recipient should consult with legal counsel to determine the appropriate response to the request.
In addition, it’s important to note that FINRA Rule 8210 requests can significantly impact the firm or individual that receives it. The process of gathering and producing the requested information can be time-consuming and costly, and can also divert resources away from the firm’s or individual’s business operations. Furthermore, if the FINRA 8210 request is part of an investigation or enforcement action, the firm or individual may face significant fines or other penalties if it is found to have violated securities laws or FINRA rules.
It’s important to contact a seasoned attorney, such as those at Bakhtiari & Harrison, when you receive an 8210 request. They focus on securities law and have a thorough understanding of FINRA regulations, including Rule 8210. They can provide guidance on how to respond to the request in a compliant and timely manner while also protecting your rights and privileges.
Why Bakhtiari & Harrison? 
Bakhtiari & Harrison can help you understand the scope of the request and the specific information being requested, ensuring that you are providing all of the required information and documents. They can also help you navigate through any legal privileges or other protections that may be implicated by the request, and ensure that you are not inadvertently waiving any of these protections.
Furthermore, Bakhtiari & Harrison can anticipate potential issues that may arise from the request, such as enforcement actions or potential legal proceedings, and help you develop a strategy to mitigate those risks. They can also help you understand the potential consequences of failing to comply with the request, such as fines or suspension of registration, and aid you in negotiating any settlements or agreements with FINRA.