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  • PART IX FEES AND AWARDS

    • 12900. Fees Due When a Claim Is Filed

      (a) Fees for Claims Filed by Customers, Associated Persons and Other Non-Members
      (1) Customers, associated persons, and other non-members who file a claim, counterclaim, cross claim or third party claim must pay a filing fee in the amount indicated in the schedule below. The Director may defer payment of all or part of the filing fee on a showing of financial hardship. If payment of the fee is not deferred, failure to pay the required amount will result in a deficiency under Rule 12307.
      Filing Fees for Claims Filed by Customers, Associated Persons,
      and Other Non-Members

      Amount of Claim
      (exclusive of interest and expenses)
      Filing Fee
      $.01 to $1,000 $50
      $1,000.01 to $2,500 $75
      $2,500.01 to $5,000 $175
      $5,000.01 to $10,000 $325
      $10,000.01 to $25,000 $425
      $25,000.01 to $50,000 $600
      $50,000.01 to $100,000 $975
      $100,000.01 to $500,000 $1,425
      $500,000.01 to $1,000,000 $1,725
      $1,000,000.01 to $5,000,000 $2,000
      Over $5,000,000 $2,250
      Non-Monetary/Not Specified $1,575
      (2) If the claim does not request or specify money damages, the Director may determine that the filing fee should be more or less than the amount specified in the schedule above, but in any event, the amount of the filing fee may not be less than $50 or more than $2,250.
      (b) Fees for Claims Filed by Members
      (1) Members filing a claim, counterclaim, cross claim, or third party claim must pay a filing fee in the amount indicated in the schedule below. Failure to pay the required amount will result in a deficiency under Rule 12307.
      Fees for Claims Filed by Members

      Amount of Claim
      (exclusive of interest and expenses)
      Filing Fee
      $.01 to $1,000 $225
      $1,000.01 to $2,500 $350
      $2,500.01 to $5,000 $525
      $5,000.01 to $10,000 $750
      $10,000.01 to $25,000 $1,050
      $25,000.01 to $50,000 $1,450
      $50,000.01 to $100,000 $1,750
      $100,000.01 to $500,000 $2,125
      $500,000.01 to $1,000,000 $2,550
      $1,000,000.01 to $5,000,000 $3,400
      Over $5,000,000 $4,000
      Non-Monetary/Not Specified $1,700
      (2) If the claim does not request or specify money damages, the Director may determine that the filing fee should be more or less than the amount specified in the schedule above, but in any event, the filing fee may not be less than $225 or more than $4,000.
      (c) Partial Refund of Filing Fee
      (1) If a claim is settled or withdrawn more than 10 days before the date that the hearing on the merits under Rule 12600 is scheduled to begin, a party paying a filing fee will receive a partial refund of the filing fee in the amount indicated in the schedule below, less any other fees or costs assessed against the party under the Code, including any hearing session fees assessed under Rule 12902. No refund will be paid if FINRA receives notice that a claim is settled or withdrawn within 10 days of the date that the hearing on the merits under Rule 12600 is scheduled to begin.
      Partial Refund for Settlement or Withdrawal
      More Than 10 Days Before Hearing on the Merits

      Amount of Claim
      (exclusive of interest and expenses)
      Refund
      $.01 to $1,000 $25
      $1,000.01 to $2,500 $50
      $2,500.01 to $5,000 $125
      $5,000.01 to $10,000 $250
      $10,000.01 to $25,000 $300
      $25,000.01 to $50,000 $450
      $50,000.01 to $100,000 $750
      $100,000.01 to $500,000 $1,125
      $500,000.01 to $1,000,000 $1,300
      $1,000,000.01 to $5,000,000 $1,400
      Over $5,000,000 $1,500
      Non-Monetary/Not specified $1,200
      (2) If the claim does not request or specify money damages, and the Director determines that the hearing session fee should be a different amount than the amount specified in the schedule in Rule 12902, the amount of the refund will be the amount of the hearing session fee determined by the Director, less any fees or costs assessed against the party under the Code, including any hearing session fees assessed under Rule 12902.
      (d) Reimbursement of Filing Fees
      In the award, the panel may order a party to reimburse another party for all or part of any filing fee paid.
      Amended by SR-FINRA-2014-026 eff. Dec. 15, 2014.
      Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
      Adopted by SR-NASD-2003-158 eff. April 16, 2007.

      Selected Notice: 07-07, 08-57, 14-49.

    • 12901. Member Surcharge

      (a) Member Surcharge
      (1) A surcharge in the amount indicated in the schedule below will be assessed against each member that:
      (A) Files a claim, counterclaim, cross claim, or third party claim under the Code;
      (B) Is named as a respondent in a claim, counterclaim, cross claim, or third party claim filed and served under the Code; or
      (C) Employed, at the time the dispute arose, an associated person who is named as a respondent in a claim, counterclaim, cross claim, or third party claim filed and served under the Code.
      Member Surcharge

      Amount of Claim
      (exclusive of interest and expenses)
      Surcharge
      $.01 to $5,000 $150
      $5,000.01–$10,000 $325
      $10,000.01–$25,000 $450
      $25,000.01–$50,000 $750
      $50,000.01–$100,000 $1,100
      $100,000.01–$250,000 $1,700
      $250,000.01 to $500,000 $1,900
      $500,000.01–$1,000,000 $2,475
      $1,000,000.01–$5,000,000 $3,025
      $5,000,000.01–$10,000,000 $3,600
      Over $10,000,000 $4,025
      Non-Monetary/Not Specified $1,900
      (2) If the claim does not request or specify money damages, the Director may determine that the member surcharge should be more or less than the amount specified in the schedule above, but in any event the amount of the member surcharge may not be less than $150 or more than $4,025.
      (3) If the claim is filed by the member, the surcharge is due when the claim is filed. If the claim is filed against the member, or against an associated person employed by the member at the time of the events giving rise to the dispute, the surcharge is due when the Director serves the Claim Notification Letter or the initial statement of claim in accordance with Rule 12300.
      (4) No member shall be assessed more than a single surcharge in any arbitration. The panel may not reallocate a surcharge paid by a member to any other party.
      (b) Refund of Member Surcharge
      (1) The Director will refund the surcharge paid by a member in an arbitration filed by a customer if the panel:
      (A) Denies all of a customer's claims against the member or associated person; and
      (B) Allocates all fees assessed pursuant to Rule 12902(a) against the customer.
      (2) The Director may also refund or waive the member surcharge in extraordinary circumstances.
      Amended by SR-FINRA-2016-029 eff. April 3, 2017.
      Amended by SR-FINRA-2014-026 eff. Dec. 15, 2014.
      Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
      Adopted by SR-NASD-2003-158 eff. April 16, 2007.

      Selected Notice: 07-07, 08-57, 14-49, 17-03.

    • 12902. Hearing Session Fees, and Other Costs and Expenses

      (a) Hearing Session Fees
      (1) Hearing session fees will be charged for each hearing session. The total amount chargeable to the parties for each hearing session is based on the amount in dispute, as specified in the schedule below. In the award, the panel will determine the amount of each hearing session fee that each party must pay.
      Hearing Session Fees

      Amount of Claim
      (exclusive of interest and expenses)
      Hearing Session
      W/ One Arbitrator
      Hearing Session
      W/ Three Arbitrators
      Up to $2,500 $50 N/A
      $2,500.01 to $5,000 $125 N/A
      $5,000.01 to $10,000 $250 N/A
      $10,000.01 to $25,000 $450 N/A
      $25,000.01 to $50,000 $450 $600
      $50,000.01 to $100,000 $450 $750
      $100,000.01 to $500,000 $450 $1,125
      $500,000.01 to $1,000,000 $450 $1,300
      $1,000,000.01 to $5,000,000 $450 $1,400
      Over $5,000,000 $450 $1,500
      Non-Monetary / Not Specified $450 $1,125
      (2) If the claim does not request or specify money damages, the Director may determine that the hearing session fee should be more or less than the amount specified in the schedule above, but in any event the hearing session fee shall not be less than $50 or more than $1,500 for each hearing session.
      (3) If there is more than one claim in a proceeding, the amount of hearing session fees will be based on the largest claim in the proceeding. If any claims are joined or combined under Rules 12312, 12313, or 12314, the amount of those claims will be aggregated and they will be treated as one claim for purposes of this paragraph.
      (4) If hearing session fees are allocated against a customer in connection with a claim filed by a member or associated person, the amount of hearing session fees the customer must pay must be based on the amount actually awarded to the member or associated person, rather than on the amount claimed by the member or associated person. No hearing session fees may be assessed against a customer in connection with a claim filed by a member that is dismissed; however, in cases where there is also a customer claim, the customer may be assessed a filing fee under Rule 12900(a), and may be subject to hearing session fees.
      (b) Payment of Hearing Session Fees
      (1) The panel may assess the hearing session fees in the award, or may require the parties to pay hearing session fees during the course of the arbitration. The total amount that the panel may require the parties to pay for each hearing session during the course of an arbitration may not exceed the total amount chargeable to the parties for each hearing session under the schedule to paragraph (a) of this rule.
      (2) Any interim hearing session fee payments made by a party under this rule will be deducted from the total amount of hearing session fees assessed against that party in the award. If the amount of interim payments is more than the amount assessed against the party in the award, the balance will be refunded to that party.
      (3) In the award, the amount of one hearing session fee will be deducted from the total amount of hearing session fees assessed against the party who paid the filing fee. If this amount is more than any fees, costs, and expenses assessed against this party under the Code, the balance will be refunded to the party.
      (c) Assessment of Other Costs and Expenses in Award
      In its award, the panel must also determine the amount of any costs and expenses incurred by the parties under the Code or that are within the scope of the agreement of the parties, and which party or parties will pay those costs and expenses.
      (d) Assessment of Hearing Session Fees, Costs, and Expenses in Case of Settlement or Withdrawal
      If a claim is settled or withdrawn:
      •  The parties will be subject to an assessment of hearing session fees for hearing sessions already held.
      •  If FINRA receives a settlement or withdrawal notice 10 days or fewer prior to the date that the hearing on the merits under Rule 12600 is scheduled to begin, parties that paid a filing fee under Rule 12900 will not be entitled to any refund of the filing fee.
      •  The parties will also be responsible for any fee or costs incurred under Rules 12502, 12513, 12601, or 12606 in connection with such hearings. If a case is settled or withdrawn and the parties' agreement fails to allocate such fees and costs, the fees and costs will be allocated as provided by Rule 12701(b).
      (e) Refund Payments
      Any refunds of fees or costs incurred under the Code will be paid directly to the named parties, even if a non-party made a payment on behalf of the named parties.
      Amended by SR-FINRA-2014-026 eff. Dec. 15, 2014.
      Amended by SR-FINRA-2009-075 eff. May 3, 2010.
      Amended by SR-FINRA-2009-041 eff. Jan. 18, 2010.
      Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
      Adopted by SR-NASD-2003-158 eff. April 16, 2007.

      Selected Notices: 07-07, 08-57, 09-74, 10-16, 14-49.

    • 12903. Process Fees Paid by Members

      (a) Each member that is a party to an arbitration in which more than $25,000, exclusive of interest and expenses, is in dispute must pay a non-refundable process fee, due at the time the parties are sent arbitrator lists in accordance with Rule 12402(c) or Rule 12403(b), as set forth in the schedule below.
      Process Fee Schedule

      Amount of Claim
      (exclusive of interest and expenses)
      Process Fee
      $.01–$25,000 $ 0
      $25,000.01–$50,000 $1,750
      $50,000.01–$100,000 $2,250
      $100,000.01–$250,000 $3,250
      $250,000.01–$500,000 $3,750
      $500,000.01–$1,000,000 $5,075
      $1,000,000.01–$5,000,000 $6,175
      $5,000,000.01–$10,000,000 $6,800
      Over $10,000,000 $7,000
      Non-Monetary/Not Specified $3,750
      (b) If an associated person of a member is a party, the member that employed the associated person at the time the dispute arose will be charged the process fees, even if the member is not a party. No member shall be assessed more than one process fee in any arbitration.
      (c) The panel may not reallocate to any other party any process fees paid by a member.
      Amended by SR-FINRA-2014-026 eff. Dec. 15, 2014.
      Amended by SR-FINRA-2013-023 eff. Sep. 30, 2013.
      Amended by SR-FINRA-2011-007 eff. Feb. 16, 2011.
      Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
      Adopted by SR-NASD-2003-158 eff. April 16, 2007.

      Selected Notice: 07-07, 08-57, 13-30, 14-49.

    • 12904. Awards

      (a) All awards shall be in writing and signed by a majority of the arbitrators or as required by applicable law. Such awards may be entered as a judgment in any court of competent jurisdiction.
      (b) Unless the applicable law directs otherwise, all awards rendered under the Code are final and are not subject to review or appeal.
      (c) The Director will serve the award on each party, or the representative of the party.
      (d) The panel shall endeavor to render an award within 30 business days from the date the record is closed.
      (e) The award shall contain the following:
      (1) The names of the parties;
      (2) The name of the parties' representatives, if any;
      (3) An acknowledgement by the arbitrators that they have each read the pleadings and other materials filed by the parties;
      (4) A summary of the issues, including the type(s) of any security or product, in controversy;
      (5) The damages and other relief requested;
      (6) The damages and other relief awarded;
      (7) A statement of any other issues resolved;
      (8) The allocation of forum fees and any other fees allocable by the panel;
      (9) The names of the arbitrators;
      (10) The dates the claim was filed and the award rendered;
      (11) The number and dates of hearing sessions;
      (12) The location of the hearings; and
      (13) The signatures of the arbitrators.
      (f) The award may contain a rationale underlying the award.
      (g) Explained Decisions
      (1) This paragraph (g) applies only when all parties jointly request an explained decision.
      (2) An explained decision is a fact-based award stating the general reason(s) for the arbitrators' decision. Inclusion of legal authorities and damage calculations is not required.
      (3) Parties must make any request for an explained decision no later than the time for the prehearing exchange of documents and witness lists under Rule 12514(d).
      (4) The chairperson of the panel will be responsible for writing the explained decision.
      (5) The chairperson will receive an additional honorarium of $400 for writing the explained decision, as required by this paragraph (g).
      (6) This paragraph (g) will not apply to simplified cases decided without a hearing under Rule 12800 or to default cases conducted under Rule 12801.
      (h) All awards shall be made publicly available.
      (i) Fees and assessments imposed by the arbitrators under the Code shall be paid immediately upon the receipt of the award by the parties. Payment of such fees shall not be deemed ratification of the award by the parties.
      (j) All monetary awards shall be paid within 30 days of receipt unless a motion to vacate has been filed with a court of competent jurisdiction. Absent specification to the contrary in the award, when arbitrators order opposing parties to make payments to one another, the monetary awards shall offset, and the party assessed the larger amount shall pay the net difference. An award shall bear interest from the date of the award:
      (1) If not paid within 30 days of receipt;
      (2) If the award is the subject of a motion to vacate which is denied; or
      (3) As specified by the panel in the award.
      Interest shall be assessed at the legal rate, if any, then prevailing in the state where the award was rendered, or at a rate set by the arbitrator(s).
      Amended by SR-FINRA-2018-012 eff. Feb. 21, 2018.
      Amended by SR-FINRA-2016-029 eff. April 3, 2017.
      Amended by SR-FINRA-2016-015 eff. Oct. 24, 2016.
      Amended by SR-FINRA-2009-026 eff. Apr. 17, 2009.
      Amended by SR-FINRA-2008-051 eff. Apr. 13, 2009.
      Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
      Adopted by SR-NASD-2003-158 eff. April 16, 2007.

      Selected Notice: 07-07, 08-57, 09-16, 16-36, 17-03.

    • 12905. Submissions After a Case Has Closed

      (a) Parties may not submit documents to arbitrator(s) in cases that have been closed except under the following limited circumstances:
      (1) as ordered by a court;
      (2) at the request of any party within 10 days of service of an award or notice that a matter has been closed, for typographical or computational errors, or mistakes in the description of any person or property referred to in the award; or
      (3) if all parties agree and submit documents within 10 days of (1) service of an award or (2) notice that a matter has been closed.
      (b) Parties must make requests under this rule in writing to the Director and must include the basis relied on under this rule for the request. The Director will forward documents submitted pursuant to paragraph (a)(1), along with any responses from other parties, to the arbitrators. The Director will determine if submissions made pursuant to paragraphs (a)(2) and (a)(3) comply with the grounds enumerated in the rule. If the Director determines that the request complies with paragraphs (a)(2) and (a)(3), the Director will forward the documents, along with any responses from other parties, to the arbitrators. The arbitrators may decline to consider requests that the Director forwards to them under paragraphs (a)(2) and (a)(3).
      (c) Unless the arbitrators rule within 10 days after the Director forwards the documents to the arbitrators pursuant to a request made under paragraphs (a)(2) and (a)(3), the request shall be deemed considered and denied.
      (d) Requests under this rule do not extend the time period for payment of any award pursuant to Rule 12904.
      Amended by SR-FINRA-2008-057 eff. Dec. 15, 2008.
      Adopted by SR-FINRA-2008-005 eff. Nov. 24, 2008.

      Selected Notice: 08-62.