Notice to Members 05-36
SEC Approves New Interpretive Material to Rule 10308 Regarding Arbitrators Who Also Serve as Mediators
The Securities and Exchange Commission (SEC) has approved a new Interpretive Material (IM) to Rule 10308 of the NASD Code of Arbitration Procedure (Code) relating to mediators who also serve as arbitrators. The amendments clarify that (1) fees for service as a mediator are not included in determining whether an attorney, accountant, or other professional derives 10 percent of his or her annual revenue from industry-related parties; and (2) service as a mediator is not included in determining whether an attorney, accountant, or other professional devotes 20 percent or more of his or her professional work to securities industry clients. IM-10308 can be found in this Notice as Attachment A.
The effective date of this rule change is May 6, 2005, for arbitrator applications received or arbitrator disclosures reviewed on or after that date.
Questions regarding this Notice may be directed to Jean I. Feeney, Vice President and Chief Counsel, Dispute Resolution, at (202) 728-6959 or by email; or Barbara L. Brady, Associate Vice President and Director of Neutral Management, Dispute Resolution, at (212) 858-4352 or by email.