FINRA—costs under the Customer Code and the Industry Code
FINRA—costs under the Customer Code and the Industry Code

The following Arbitration guidance note provides comprehensive and up to date legal information covering:

  • FINRA—costs under the Customer Code and the Industry Code
  • Filing fees
  • Brokerage firm fees
  • Hearing session fees
  • Foreign hearings
  • Other procedural fees
  • Injunctive claim fees
  • Adjournment fees
  • Costs and expenses
  • Settlement or withdrawal
  • more

The Financial Industry Regulatory Authority (FINRA) is an independent regulatory body overseeing the US securities industry. As part of its role, FINRA operates the largest dispute resolution body in the securities industry. It works to resolve monetary and business disputes between investors, brokerage firms and individual brokers, as well as disputes between and among brokerage firms and individual brokers.

The disputes are dealt with using FINRA’s own arbitration procedure. FINRA has two Codes of Arbitration Procedure:

  1. the Code of Arbitration Procedure for Customer Disputes (the Customer Code or Section 12000 of the FINRA Rules)—which governs arbitration proceedings between investors and industry parties, and

  2. the Code of Arbitration Procedure for Industry Disputes (the Industry Code or Section 13000 of the FINRA Rules)—which governs arbitration proceedings between industry parties

This note concerns costs under both Codes.

Filing fees

Any party that makes a claim (including a counterclaim, a cross-claim or a third party claim) must pay a filing fee. There are two schedules of filing fees, one for claims made by members and the other for claims made by investors, associated persons and other non-members. Both schedules are based on a sliding scale depending on the value of the claim (the Customer Code, Pt IX, r 12900 (a)–(b) and the Industry Code, Pt IX, r 13900 (a)(1), b(1)). An arbitration fee calculator is available