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October 19, 2020 at 04:14 PM
(Photo: Susana Gonzalez/Bloomberg)
The Financial Industry Regulatory Authority wants to boost arbitrators’ pay as well as the fees for those bringing claims of more than $500,000.
The broker-dealer regulator has filed with the Securities and Exchange Commission a proposed rule change that would increase the additional hearing-day honorarium chairs receive for each hearing on the merits from $125 to $250 and as well as create a new $125 chair honorarium for each pre-hearing conference in which the Chair participates.
Under the plan, “these increases would be funded primarily by minimal increases to the member surcharge and process fees for claims of more than $250,000 or claims for non-monetary or unspecified damages.”
FINRA’s proposal would also increase filing fees and hearing session fees for customers, associated persons and members bringing claims of more than $500,000 or claims for non-monetary or unspecified damage.
Samuel Edwards, a partner at Shepard Smith Edward & Kantas in Houston, who also serves as president of the Public Investors Advocate Bar Association, told ThinkAdvisor Monday in an email that PIABA is “supportive of increasing the honorarium paid to the Chair under FINRA’s new rule proposal as long as FINRA continues to divide the responsibility for those fees roughly 85% towards the industry and 15% towards customers.”
