FINRA has asked the SEC to approve a round of fee increases in its dispute resolution forum as it looks to boost pay for its force of around 6,300 arbitrators. The increase could add up to $400 per case.
FINRA has not increased fees for arbitrators in 14 years. The panel chairperson would also receive an increase. FINRA believes the proposed fee increases are needed in order to recruit and retain a roster of high-quality arbitrators.
FINRA is also proposing an increase to member firm surcharges and case processing fees for claims larger than $250,000. The proposal will also raise filing fees and hearing session fees for those bringing claims of more than $500,000.
While lower compensation for arbitrators keeps the costs of the procedure lower, the increase in fees could be beneficial to Broker Dealers as it certainly has the potential to attract more arbitrators that are better qualified, and have a more thorough understanding of the industry.
Further, the increase in filing fees and hearing session fees has the potential to discourage claimants from filing frivolous complaints in the first place.