On October 5th, the United States Court of Appeals for the Second Circuit held that FINRA lacks the power to bring court actions to collect disciplinary fines. According to the court, while the Securities Exchange Act authorizes self-regulatory organizations to enforce and discipline members for violations of the securities laws and rules, and for violations of an SRO's rules, the Act does not authorize an SRO to commence judicial proceedings to collect fines. FINRA's rule changes purporting to create such authority do not change that result. The rule changes were improperly designated as "housekeeping" rules effective immediately upon filing with the SEC and were not properly promulgated under the Exchange Act's notice and comment procedures. John J. Fiero v. FINRA.