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13901. Member Surcharge
(a) A surcharge in the amount indicated in the schedule below will be assessed against each member that:
(1) Files a claim, counterclaim, cross claim, or third party claim under the Code;
(2) Is named as a respondent in a claim, counterclaim, cross claim, or third party claim filed and served under the Code; or
(3) Employed, at the time the dispute arose, an associated person who is named as a respondent in a claim, counterclaim, cross claim, or third party claim filed and served under the Code.
|Amount of Claim
(exclusive of interest
|$.01 to $5,000||$150|
(b) If the claim does not request or specify money damages, the Director may determine that the member surcharge should be more or less than the amount specified in the schedule above, but in any event the amount of the member surcharge may not be less than $150 or more than $4,325.
(c) If an associated person files a request for expungement of customer dispute information pursuant to Rule 13302, the member surcharge shall be the Non-Monetary/Not Specified member surcharge under Rule 13901(a)(1). If the associated person adds a monetary claim to the expungement request, the member surcharge shall be the Non-Monetary/Not Specified member surcharge or the applicable surcharge provided in Rule 13901(a)(1), whichever is greater.
(d) If the claim is filed by the member, the surcharge is due when the claim is filed. If the claim is filed against the member, or against an associated person employed by the member at the time of the events giving rise to the dispute, the surcharge is due when the Director serves the Claim Notification Letter or the initial statement of claim in accordance with Rule 13300.
(e) If a claim is filed by an associated person pursuant to paragraph (c), the surcharge is due when the Director serves the Claim Notification Letter or the initial statement of claim in accordance with Rule 13300.
(f) No member shall be assessed more than a single surcharge in any arbitration. The panel may not reallocate a surcharge paid by a member to any other party.
(g) The Director may also refund or waive the member surcharge in extraordinary circumstances.
|Amended by SR-FINRA-2020-035 eff. April 19, 2021.
Amended by SR-FINRA-2020-005 eff. Sept. 14, 2020.
Amended by SR-FINRA-2016-029 eff. April 3, 2017.
Amended by SR-FINRA-2014-026 eff. Dec. 15, 2014.
Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Adopted by SR-NASD-2004-011 eff. April 16, 2007.
Selected Notice: 07-07, 08-57, 14-49, 17-03, 20-25, 21-04.