Option for an Explained Decision at No Additional Cost
Starting January 3, 2017, if the parties jointly request an explained decision, FINRA will waive the $400 fee to the parties for an explained decision. An explained decision is a fact-based award stating the general reason(s) for the arbitrators' decision. (See Rules 12904(g) and 13904(g).) Legal authorities and damage calculations are not required. Parties must make the joint request for an explained decision 20 days before the date of the first scheduled hearing. (See Rules 12514(d) and 13514(d).) The panel chairperson will write the explained decision and receive an additional honorarium of $400 for doing so. (See Rules 12214(e) and 13214(e).) Under Rules 12904(g) and 13904(g), the panel is permitted to allocate the cost of the chairperson's $400 honorarium for writing the explained decision to the parties as part of the final award. Under this initiative, however, if the parties jointly request an explained decision, the panel chairperson will receive the $400 honorarium for writing the explained decision but the parties will not be charged.
View Regulatory Notice 09-16 to obtain more information about Explained Decisions.