10333. Member Surcharge and Process Fees

This Code was superseded by the Customer Code (FINRA Rule 12000 Series) and the Industry Code (FINRA Rule 13000 Series) on April 16, 2007, for claims filed on or after that date.

(a) Member Surcharge

(1) Each member that is named as a party to an arbitration proceeding, whether in a Claim, Counterclaim, Cross-Claim or Third-Party Claim, shall be assessed a surcharge pursuant to the schedule below when the Director of Arbitration perfects service of the claim naming the member on any party to the proceeding.
(2) For each associated person who is named, the surcharge shall be assessed against the member or members that employed the associated person at the time of the events which gave rise to the dispute, claim or controversy. No member shall be assessed more than a single surcharge in any arbitration proceeding.

(3) The surcharge shall not be chargeable to any other party under Rules 10332(c) and 10205(c) of the Code. The Director will refund the surcharge paid by a member in an arbitration filed by a customer if the arbitration panel: (A) denies all of the customer's claims against the member or associated person; and (B) allocates all forum fees assessed pursuant to Rule 10332(c) against the customer. The Director may also refund or cancel the member surcharge in extraordinary circumstances.

 

Member Surcharge Schedule

Amount in Dispute 
$.01–$2,500$150
$2,500.01–$5,000$200
$5,000.01–$10,000$325
$10,000.01–$25,000$425
$25,000.01–$30,000$600
$30,000.01–$50,000$875
$50,000.01–$100,000$1,100
$100,000.01–$500,000$1,700
$500,000.01–$1,000,000$2,250
$1,000,000.01–$5,000,000$2,800
$5,000,000.01–$10,000,000$3,350
Over $10,000,000$3,750
(4) For purposes of this Rule, service is perfected when the Director of Arbitration properly serves the Respondents to such proceeding under Rule 10314 of the Code.
(5) If the dispute, claim, or controversy does not involve, disclose, or specify a money claim, the non-refundable surcharge shall be $1,500 or such greater or lesser amount as the Director of Arbitration or the panel of arbitrators may require, but shall not exceed the maximum amount specified in the schedule.

(b) Prehearing and Hearing Process Fees

(1) Each member that is a party to an arbitration proceeding in which more than $25,000 is in dispute will pay:

(A) a non-refundable prehearing process fee of $750, due at the time the parties are sent arbitrator lists in accordance with Rule 10308(b)(5); and
(B) a non-refundable hearing process fee, due when the parties are notified of the date and location of the first hearing session, as set forth in the schedule below.
(2) If an associated person of a member is a party, the member that employed the associated person at the time of the events which gave rise to the dispute, claim or controversy will be charged the process fees, even if the member is not a party. No member shall be assessed more than one prehearing and one hearing process fee in any arbitration proceeding.

(3) The prehearing and hearing process fees shall not be chargeable to any other party under Rules 10332(c) and 10205(c) of the Code.

 

Hearing Process Fee Schedule

Damages Requested

Hearing Process Fee

 

$1–$25,000

$ 0

$25,000.01–$50,000

$ 1,000

$50,000.01–$100,000

$ 1,700

$100,000.01–$500,000

$ 2,750

$500,000.01–$1,000,000

$ 4,000

$1,000,000.01–$5,000,000

$ 5,000

More than $5,000,000

$ 5,500

Unspecified

$ 2,200

Amended by SR-NASD-2003-01 eff. Jan. 13, 2003.
Amended by SR-NASD-2001-62 eff. Nov. 19, 2001.
Amended by SR-NASD-98-93 eff. Dec. 11, 1998.
Amended by SR-NASD-97-96 eff. Jan. 2, 1998.
Amended by SR-NASD-97-88 eff. Dec. 11, 1997.
Amended by SR-NASD-97-40 eff. July 1, 1997.
Amended by SR-NASD-94-74 eff. Dec. 28, 1994.
Amended by SR-NASD-94-16 eff. Mar. 31, 1994.
Added by SR-NASD-94-11 eff. Feb. 25, 1994.

Selected Notices: 87-55, 88-14, 90-47, 94-26, 95-1, 98-1, 01-70, 03-06.

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