DC Circuit Finds Some FINRA Authority Violates Private Nondelegation Doctrine

On Friday, the U.S. Court of Appeals for the D.C. Circuit ruled that some of FINRA’s authority violates the private nondelegation doctrine. Judge Millett delivered the opinion in Alpine Securities Corp. v. FINRA, joined by Chief Judge Srinivasan. Judge Walker partially dissented, believing more of FINRA’s authority should be challenged. The case involves FINRA’s expulsion of Alpine Securities Corporation for violating its rules. Alpine sued, claiming FINRA’s actions were unconstitutional. The court granted Alpine a preliminary injunction, allowing SEC review before expulsion. Judge Walker argued that FINRA’s actions violate the Constitution and called for a full injunction. The case may lead to further legal action by Alpine and FINRA.

Source link