A template settlement agreement that is issued and promulgated by FINRA, the Financial Industry Regulatory Authority, USA. The agreement is a public document (publicly available), that is signed with a regulator (of exchange trading and brokerage services) to avoid the need for a formal hearing and the costly, lengthy litigation process. The document is forwarded, by FINRA, to brokers or advisors who have allegedly violated securities rules or regulations. The alleged party has to accept the factual findings without admitting or denying the allegations leveled and filed in the document for the purposes of other proceedings. If any other action is filed against the party, a tougher sanction may be imposed.

The public will have access to the accept, waiver and consent (AWC) letter and the findings provided therein. If a party is able to negotiate the findings in order to soften them, or can refuse to sign the document, and instead go to a disciplinary hearing. This document differs from a settlement agreement in many aspects including a party’s waiver of future due process rights once it is signed. Consent implies a party’s consent to the sanctions, including an undertaking, an agreement that a party would not do a specific violation again in the future, fines, etc.

Unless a broker settles the amount of fines, operating again as a broker in the industry will not be possible. A broker may also be permanently barred, and would need to re-negotiate any possible resumption of work with FINRA.