The Securities and Exchange Commission has approved amendments to the Financial Industry Regulatory Authority’s customer and industry arbitration rules to pay each arbitrator a $200 honorarium to decide without a hearing session under certain conditions.
The amendments, FINRA states in Regulatory Notice 18-40, are effective for cases filed on or after Jan. 7, 2019.
FINRA states that it has amended Rules 12214(c) and 13214(c) of the Codes of Arbitration Procedure for Customer and Industry Disputes to provide that FINRA will pay each arbitrator an honorarium of $200 to decide, without a hearing session a:
- discovery-related motion;
- motion that contains one or more contested subpoena requests or contested orders for production or appearance; or
- motion that contains one or more contested subpoena requests and contested orders for production or appearance.
The regulatory notice explains that under the codes, the parties exchange documents and information to prepare for the arbitration through the discovery process.