NASD Notice to Members 00-64 - September 2000 

SEC Approves Rule Changes to Amend Mediation Fee Structure; Effective Date: November 1, 2000

Executive Summary

On August 11, 2000, the Securities and Exchange Commission (SEC) approved a change to the Code of Arbitration Procedure (Code) to permit NASD Dispute Resolution, Inc., (NASD Dispute ResolutionSM) to implement a new fee structure for its mediation services. When the rule change becomes effective, NASD Dispute Resolution will replace its current flat fee for cases filed directly as mediations with a sliding-scale fee schedule that will result in lower fees to mediate smaller claims.


The rule change also affects cases filed as arbitrations that move to mediation. NASD Dispute Resolution will now charge the parties in such cases a mediation filing fee, except that no fee will be charged if a case involves claims of $25,000 or less. Previously, no mediation filing fee was assessed when parties in arbitration decided to mediate. However, as an inducement to parties to mediate cases in arbitration, parties will no longer pay the arbitration adjournment fee if they choose to mediate with NASD Dispute Resolution. The rule change also makes it clear that parties that choose to mediate can adjourn their arbitration, so they are not participating in two processes simultaneously. The rule change becomes effective for mediations filed on or after November 1, 2000.


Questions regarding this Notice may be directed to Kenneth L. Andrichik, Associate Vice President and Director of Mediation, NASD Dispute Resolution, at (212) 858-3915, e-mail; Elizabeth McCoy, Assistant Director of Mediation, NASD Dispute Resolution, at (212) 858-4341, e-mail; or Louise Corso, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD RegulationSM), at (202) 728-6939, e-mail.