NASD Notice to Members 01-70 - November 2001

SEC Approves Increases to Member Surcharges and Process Fees in NASD Arbitration Proceedings, and Other Amendments to Fee-Related Provisions of the NASD Code of Arbitration Procedure

Executive Summary

The Securities and Exchange Commission (SEC or Commission) has approved increases to the member surcharges and process fees paid by member firms in National Association of Securities Dealers, Inc. (NASD®) arbitration proceedings. For claims filed on or after November 19, 2001, member surcharges and hearing process fees will increase by an aggregate of 10 percent. In addition, the incremental prehearing process fee payments currently paid by member firms will be combined into a single payment of $750, an overall increase of $150, which will be payable at the time arbitrator lists are sent to the parties pursuant to Rule 10308(c)(5) of the NASD Code of Arbitration Procedure (Code). These increases will be used to fund NASD Dispute Resolution's share of the cost of developing and implementing a new computer system, which will greatly enhance the administration of cases in the forum, and to cover inflationary cost increases.

 

In addition, the SEC has approved several other amendments to provisions of the Code relating to the assessment and payment of fees in NASD arbitration proceedings that will also go into effect on November 19, 2001.

 

Questions regarding this Notice may be directed to Laura Leedy Gansler, Counsel, NASD Dispute Resolution, Inc., at (202) 728-8275.