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Dec 15 2008 - May 2 2010May 3 2010 onwards

13213. Hearing Locations

(a) U.S. Hearing Location
(1) The Director will decide which of FINRA's hearing locations will be the hearing location for the arbitration. In cases involving an associated person, the Director will generally select the hearing location closest to where the associated person was employed at the time of the events giving rise to the dispute, unless the hearing location closest to the associated person's employment is in a different state, in which case the associated person may request a hearing location in his or her state of employment at the time of the events giving rise to the dispute. In cases involving members only or more than one associated person, the Director will consider a variety of factors, including:
•  The parties' signed agreement to arbitrate, if any;
•  Which party initiated the transaction or business in issue; and
•  The location of essential witnesses and documents.
(2) Before arbitrator lists are sent to the parties under Rule 13403, the parties may agree in writing to a hearing location other than the one selected by the Director.
(3) The Director may change the hearing location upon motion of a party, as set forth in Rule 13503.
(4) After the panel is appointed, the panel may decide a motion relating to changing the hearing location.
(b) Foreign Hearing Location
(1) If the Director and all parties agree, parties may have their hearing in a foreign hearing location and conducted by foreign arbitrators, provided that the foreign arbitrators have:
(A) met FINRA background qualifications for arbitrators;
(B) received training on FINRA arbitration rules and procedures; and
(C) satisfied at least the same training and testing requirements as those arbitrators who serve in U. S. locations of FINRA.
(2) The parties shall pay an additional surcharge for each day of hearings held in a foreign hearing location. The amount of the surcharge will be determined by the Director and must be agreed to by the parties before the foreign hearing location may be used. This surcharge shall be specified in the agreement to use a foreign hearing location and shall be apportioned equally among the parties, unless they agree otherwise. The foreign arbitrators shall have the authority to apportion this surcharge as provided in Rule 13902(c).
Amended by SR-FINRA-2009-073 eff. May 3, 2010.
Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Adopted by SR-NASD-2004-011 eff. April 16, 2007.

Selected Notice: 07-07, 08-57, 10-17.

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