Arbitration Fees and Terms

A Summary of Arbitration Fees

Potential Fees in Arbitration Cases

Filing Fees

  1. Initial Filing Fee – The fee a claimant pays to file a claim.  Part of the fee is non-refundable and part is potentially refundable.

    For more detail, go to Customer Code Rule 12900; Industry Code Rule 13900.
     
  2. Counterclaim, Cross Claim and Third Party Claim Filing Fee – The fee a respondent pays to file a counterclaim, cross claim or third party claim.  Part of the fee is non-refundable and part is potentially refundable.

    For more detail, go to Customer Code Rule 12900; Industry Code Rule 13900.
     
  3. Statutory Discrimination Filing Fee Claimant – The fee a claimant pays to file a claim involving statutory employment discrimination claims. If the claimant signed a pre-dispute agreement to arbitrate, the claimant's filing fee in cases involving statutory employment discrimination claims is capped at $200.

    For more detail, go to Industry Code Rule 13802.

 

Brokerage Firm Fees

  1. Surcharge and Processing Fees – The Codes of Arbitration Procedure require a brokerage firm to pay these fees when the firm: 1) files a claim; 2) is named as respondent in a claim, counterclaim, cross claim, or third party claim; or 3) employed an associated person at the time of the dispute who is named as a respondent in a claim, counterclaim, cross claim, or third party claim:
    1. Member Surcharge Fee - A fee assessed when FINRA serves the claim. The fee amount is based on the amount of the initial claim;
    2. Member Prehearing Process Fee - A $750 fee assessed when FINRA sends the arbitrator lists to the parties;
    3. Member Hearing Process Fee - A fee assessed when FINRA notifies parties of the date and place of the hearing. The fee amount is based on the largest amount in dispute in the case.

    For more detail, go to Customer Code Rules 12901 and 12903 and Industry Code Rules 13901 and 13903.
     
  2. Statutory Discrimination Filing Fee Respondent – The fee assessed to the Member Firm in cases involving statutory employment discrimination claims where there is a pre-dispute agreement to arbitrate. The fee is the amount of the filing fee less the $200 assessed to the claimant. Since the claimant's fee is capped at $200, the Member Firm shall pay the fees in excess of this amount.

    For more detail, go to Industry Code Rule 13802.


Arbitrators may not assess any of the surcharge and processing fees or the statutory discrimination filing fee paid by the respondent against other parties.

 

Injunctive Claim Fees

  1. Injunctive Relief Expedited Processing Fee – The fee a claimant pays to file an injunctive claim. The fee is in addition to all other required non-refundable filing fees.
     
  2. Injunctive Relief Arbitrator Honoraria Fee – The fee assessed to parties when they choose to pay the arbitrator more than the arbitrators' regular honoraria fee in injunctive hearings as described in the Codes of Arbitration Procedure.  The fee amount is the difference between the standard rate and the agreed upon rate.
     
  3. Injunctive Relief Arbitrator Expenses – The fee assessed to parties for the arbitrators' travel-related expenses in injunctive cases when the arbitrator selected resides in another hearing location.

 

For more detail, go to Industry Code Rule 13804.
 

Hearing Session Fees
The fees arbitrators assess to parties for each hearing session. A hearing session is any meeting between the parties and arbitrator(s) of four hours or less, including a hearing or a prehearing conference. Thus, two hearing sessions may be held in one day.

 

For more detail, go to Customer Code Rules 12100(n) and 12902; Industry Code Rules 13100(n) and 13902

 

Adjournment Fees

  1. Adjournment Fees – The fee assessed when the arbitrators grant a party's postponement request.  FINRA will not assess an adjournment fee in certain circumstances.
     
  2. Last Minute Adjournment Fee – The fee assessed when a party requests and the arbitrators grant a postponement request or the case settles or is withdrawn within three business days of a scheduled hearing. This fee is in addition to the adjournment fee.

 

For more detail, go to Customer Code Rule 12601; Industry Code Rule 13601.

 

Other Fees
The parties may also be assessed the following fees:

 

  1. Discovery Motion Fee – The fee assessed when arbitrators decide a discovery motion without a hearing. 

    For more detail, go to Customer Code Rule 12214(c); Industry Code Rule 13214(c).
     
  2. Contested Subpoena Fee – The fee assessed when arbitrators decide a contested motion for the issuance of a subpoena without a hearing.

    For more detail, go to Customer Code Rule 12214(d); Industry Code Rule 13214(d).
     
  3. Explained Decision Fee – The fee assessed when the parties agree that the arbitrators will provide a written explanation in the award. 

    For more detail, go to Customer Code Rule 12904(g); Industry Code Rule 13904(g).
     
  4. Administrative Cost – Cost assessed to the parties for special services requested by parties.

    For more detail, go to Customer Code Rule 12902(c); Industry Code Rule 13902(c).
     
  5. Non-Sufficient Funds Fee – The fee FINRA assesses when the bank returns a check due to insufficient funds.