Nasdaq is asking for the Securities and Exchange Commission's blessing to codify proposed standards of review governing appeals before the Nasdaq Listing and Hearing Review Council (the Listing Council). 

When a listed company receives a Staff Delisting Determination or a Public Reprimand Letter—or when its application for initial listing is denied—a company may request that a Hearings Panel review the matter.

The Hearing Panel’s decision may then be reviewed by the Listing Council, either on appeal or on its own initiative. Nasdaq’s Listing Rules currently do not specify a standard of review that applies when the Listing Council reviews Hearings Panel decisions. Accordingly, Nasdaq now proposes to amend Listing Rule 5820 to adopt a standard of review for appeals of Hearings Panel decisions before the Listing Council and a separate standard of review for Hearings Panel decision called for review by the Listing Council.

This article is part of Fenwick's monthly "Securities Law Update" that was authored by David A. Bell, Ran Ben-Tzur, Amanda Rose, and Merritt Steele.