FINRA Proposes Rule Change to Amend the Codes of Arbitration Procedure to Increase Arbitrator Fees

FINRA filed with the SEC proposed amendments to the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes to increase arbitration filing fees, member surcharges and process fees, and hearing session fees. FINRA filed the proposed rule change with the primary purpose of increasing arbitrator honoraria in order to recruit and retain a roster of "high quality arbitrators."

The rules FINRA proposes to amend to increase the various associated fees involving arbitration include: Customer Code Rules 12214 ("Payment of Arbitrators"), 12800 ("Simplified Arbitration"), 12900 ("Fees Due When a Claim is Filed"), 12901 ("Member Surcharge"), 12902 ("Hearing Session Fees, and Other Costs and Expenses"), and 12903 ("Process Fees Paid by Members"). Additionally, the proposed rule change would amend Industry Code Rules 13214 ("Payment of Arbitrators"), 13800 ("Simplified Arbitration"), 13900 ("Fees Due When a Claim is Filed"), 13901 ("Member Surcharge"), 13902 ("Hearing Session Fees, and Other Costs and Expenses"), and 13903 ("Process Fees Paid by Members").

See: Text of Proposed Rule Change.