The Financial Industry Regulatory Authority has proposed to change the Code of Procedure at the agency to allow staff members to handle legal matters more efficiently, while eliminating duplications. The proposal was filed with the Securities and Exchange Commission on Aug. 30.

In the detailed proposal, the agency seeks to change some of its procedures, including:

Granting permission for staff members to serve notices and complaints to counsels representing FINRA members

Permitting use of electronic mail when filing documents with the adjudicator

Mandating that an attorney who wants to withdraw from a disciplinary case files a motion to gain approval from FINRA

Allowing hearing officers to manage pre-hearing transcript submissions to eliminate duplicate filings

Providing greater flexibility for hearing panels and the National Adjudicator Council to determine the amount of evidence required before making their decisions

Under the existing rule, FINRA staff members do not have the authority to send legal notices and correspondence to anyone other than their members. Recognizing members' common use of legal counsels in dealing with the agency, FINRA hopes to change the code governing its procedure to allow staff members to communicate directly to members' legal counsels when issuing a complaint or document that initiates a dispute.

Other highlights of the procedural changes by the agency include

Filing of documents with adjudicator

-          Allow the use of electronic mail as a delivery method for complaints and other papers required to be filed with adjudicator

-          National Adjudicatory Counsel will set filing specification

-          Reduce required paper filings from three copies to one

Motion to Withdraw by Attorney

-          Attorneys seeking to withdraw a legal filling must state the reason for the withdrawal and provide contact information of the party they are no longer representing

Subjects discussed at pre-hearing conference

-          Highlight the information directly related to the legal issue when submitting written transcripts as evidence in a pre-hearing conference

Submission of evidence

-          Documents submitted prior to hearing will not be considered as evidence unless early approval was obtained from the panel

The regulator said it will announce the effective date of the proposed rule change no later than 60 days upon receiving the SEC's approval.