SEC Approves Various FINRA Amendments to Arbitration Procedure (FINRA Reg. Notice 14-49)

The SEC approved FINRA-proposed amendments to its manual under "The Code of Arbitration Procedure for Customer Disputes" and "The Code of Arbitration Procedure for Industry Disputes," which jointly govern the payments that FINRA makes to its arbitrators for the services they provide to FINRA's dispute resolution forum, and the fees assessed to the parties for arbitration proceedings.

The new amendments increase the honoraria arbitrators receive for participating in hearing sessions, serving as a chairperson, deciding contested subpoena motions, and deciding simplified arbitration cases. To fund the increase in the payments to arbitrators, the SEC approved amendments to the codes to increase certain arbitration fees, such as the arbitration filing fees, member surcharges and process fees, and hearing session fees.

The amendments are effective for arbitration cases filed on or after December 15, 2014.

See: FINRA Reg. Notice 14-49.Related news: SEC Approves FINRA-Proposed Rule to Amend Codes of Arbitration Procedures and Increase Certain Arbitration Fees (Fed. Reg.) (October 3, 2014); FINRA Proposes Rule Change to Amend the Codes of Arbitration Procedure to Increase Arbitrator Fees (June 13, 2014).