12903. Process Fees Paid by Members
This rule is no longer applicable. NASD Rule 12903 has been superseded by FINRA Rule 12903. Please consult the appropriate FINRA Rule.
The Customer Code will apply to claims filed on or after April 16, 2007. In addition, the list selection provisions of the Customer Code will apply to previously filed claims in which a list of arbitrators must be generated after April 16, 2007; in these cases, however, the claim will continue to be governed by the remaining provisions of the old Code unless all parties agree to proceed under the new Code.
(a) Each member that is a party to an arbitration in which more than $25,000, exclusive of interest and expenses, is in dispute must pay:
• A non-refundable prehearing process fee of $750, due at the time the parties are sent arbitrator lists in accordance with Rule 12403(b); and
• A non-refundable hearing process fee, due when the parties are notified of the date and location of the hearing on the merits under Rule 12600, as set forth in the schedule below.
Hearing Process Fee Schedule
|
Amount of Claim (exclusive of interest and expenses) |
Hearing Process Fee |
| $1–$25,000 | $ 0 |
| $25,000.01–$50,000 | $1,000 |
| $50,000.01–$100,000 | $1,700 |
| $100,000.01–$500,000 | $2,750 |
| $500,000.01–$1,000,000 | $4,000 |
| $1,000,000.01–$5,000,000 | $5,000 |
| More than $5,000,000 | $5,500 |
| Non-Monetary/Not Specified | $2,200 |
(b) If an associated person of a member is a party, the member that employed the associated person at the time the dispute arose will be charged the process fees, even if the member is not a party. No member shall be assessed more than one prehearing and one hearing process fee in any arbitration.
(c) The panel may not reallocate to any other party any prehearing and hearing process fees paid by a member.
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Adopted by SR-NASD-2003-158 eff. April 16, 2007. Selected Notices: 07-07 |