Regulatory Notice 15-21

SEC Approves Amendments to the Codes of Arbitration Procedure to Increase the Fees Assessed for Late Cancellation or Postponement of a Hearing

Effective Date: July 6, 2015

Executive Summary

The Code of Arbitration Procedure for Customer Disputes (Customer Code) and the Code of Arbitration Procedure for Industry Disputes (Industry Code) (together, codes) govern the payments that FINRA makes to its arbitrators for the services they provide to FINRA’s dispute resolution forum, as well as the fees assessed to the parties for arbitration proceedings. FINRA has amended Rules 12214(a), 12601(b)(2), 13214(a) and 13601(b)(2) to require that if one or more parties request a postponement or cancellation within 10 days before a scheduled hearing session and the arbitrators grant the request, the party or parties making the request would pay a late cancellation fee of $600 per-arbitrator.

The amendments are effective for arbitration cases filed on or after July 6, 2015. The extended cancellation period and the increased late cancellation fee would not apply to parties whose cases were filed prior to the effective date.

The text of the amendments is set forth in Attachment A.

Questions concerning this Notice should be directed to:

  • Kenneth L. Andrichik, Senior Vice President, Chief Counsel, and Director of Mediation & Strategy, FINRA Dispute Resolution, at (212) 858-3915; or
  • Mignon McLemore, Assistant Chief Counsel, FINRA Dispute Resolution, at (202) 728-8151.