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Compliance Rules

Part 3 - Compliance Procedures


[Effective date of amendments: January 28, 1986; April 30, 1986; March 15, 1994; February 2, 1995 and March 12, 1999.]

If a hearing is held:

(a) The formal rules of evidence need not apply;

(b) Telephonic testimony shall be permitted if ordered by the Hearing Panel;

(c) The Respondent may appear personally, examine any witnesses, call witnesses and present relevant testimony and other evidence;

(d) Any party to a hearing may move for an order or the Hearing Panel, on its own motion, may issue an order requiring an NFA Member, Associate, or person connected therewith to testify or produce documents at a hearing at the moving party's expense. Such an order is discretionary with the Hearing Panel and shall be issued only for good cause shown; and

(e) A substantially verbatim record of the hearing shall be made (i.e., one that can be accurately transcribed). The cost of transcription shall be borne by the Respondent only if it requests the transcript, appeals the decision under Rule 3-13 below, or applies for Commission review and review is granted (See paragraph (f)(iii) of Rule 3-13). Otherwise, any transcription costs shall be borne by NFA.

No member of the Hearing Panel shall participate in the matter if the member, or any person with which the member is connected, has a financial, personal or other direct interest in the matter under consideration or is disqualified under Bylaw 708(c).