13800. Simplified Arbitration
(f) Arbitrator Honoraria
FINRA will pay the arbitrator an honorarium of $350 for each arbitration decided on the pleadings and other materials submitted by parties. In cases where the claimant requests a hearing, the regular provisions of the Code relating to arbitrator honoraria will apply.

13802. Statutory Employment Discrimination Claims
(d) Fees
(1) For any claim of statutory employment discrimination submitted to arbitration that is subject to a pre-dispute arbitration agreement, a party who is a current or former associated person shall pay a non-refundable filing fee according to the schedule of fees set forth in Rule 13900(a), provided that:
(A) In no event shall such a person pay more than $200 for a filing fee; and
(B) A member that is a party to such an arbitration proceeding under this rule shall pay the remainder of all applicable arbitration fees set forth in Rules 13900, 13901, 13902(a), 13902(b) and 13903.
(2) The arbitration fees described in subparagraph (1)(B) are not subject to allocation in the award. The panel, however, may assess to a party who is a current or former associated person those costs incurred under Rules 13502, 13510, 13512, 13513, 13514, 13601, and 13606.

13213. Hearing Locations
(b) Foreign Hearing Location
(1) If the Director and all parties agree, parties may have their hearing in a foreign hearing location and conducted by foreign arbitrators, provided that the foreign arbitrators have:
(A) met FINRA background qualifications for arbitrators;
(B) received training on FINRA arbitration rules and procedures; and
(C) satisfied at least the same training and testing requirements as those arbitrators who serve in U. S. locations of FINRA.
(2) The parties shall pay an additional surcharge for each day of hearings held in a foreign hearing location. The amount of the surcharge will be determined by the Director and must be agreed to by the parties before the foreign hearing location may be used. This surcharge shall be specified in the agreement to use a foreign hearing location and shall be apportioned equally among the parties unless they agree otherwise. The foreign arbitrators shall have the authority to apportion this surcharge as provided in Rule 13902(c).

13304. Answering Counterclaims
(a) A claimant must serve any answer to a counterclaim on each other party through the Party Portal within 20 days of receipt of the counterclaim. At the same time, the claimant must file the answer to the counterclaim with the Director.

12800. Simplified Arbitration
(f) Arbitrator Honoraria
FINRA will pay the arbitrator an honorarium of $350 for each arbitration decided on the pleadings and other materials submitted by the parties. In cases where the customer requests a hearing, the regular provisions of the Code relating to arbitrator honoraria will apply.

12900. Fees Due When a Claim Is Filed
(b) Fees for Claims Filed by Members
2) If the claim does not request or specify money damages, the Director may determine that the filing fee should be more or less than the amount specified in the schedule above, but in any event, the filing fee may not be less than $225 or more than $4,000.

12903. Process Fees Paid by Members
The maximum amount is $7,000

12402. Cases with One Arbitrator
(b) Generating Lists
(1) The Neutral List Selection System will generate a list of 10 public arbitrators from the FINRA chairperson roster.
(2) The Neutral List Selection System will exclude arbitrators from the lists based upon current conflicts of interest identified within the Neutral List Selection System.

12404. Additional Parties
(a) If a party is added to an arbitration after the Director sends the lists generated by the Neutral List Selection System to the parties, but before the ranked lists are due to the Director, the Director will send the lists to the newly added party, with employment history for the past 10 years and other background information for each arbitrator listed. The newly added party may rank and strike the arbitrators in accordance with Rules 12402(d) or 12403(c). If the Director receives the ranked lists from the newly added party within 20 days after the date upon which the Director sent the lists to the party, the Director will include the new party’s lists when combining rankings under Rules 12402(e) or 12403(d). If the Director does not receive the list(s) within that time, the Director will proceed as though the party did not want to strike any arbitrator or have any preference among the listed arbitrators.

12500. Initial Pre-hearing Conference
(c) At the Initial Pre-hearing Conference, the panel will set discovery, briefing, and motions deadlines, schedule subsequent hearing sessions, and address other preliminary matters. The parties may agree to forgo the Initial Pre-hearing Conference only if they jointly provide the Director with the following information, in writing before the Initial Pre-hearing Conference is scheduled to be held:
(1) A statement that the parties accept the panel;
(2) Whether any other prehearing conferences will be held, and if so, for each prehearing conference, a minimum of four mutually agreeable dates and times, and whether the chairperson or the full panel will preside;
(3) A minimum of four sets of mutually agreeable hearing dates;
(4) A discovery schedule;
(5) A list of all anticipated motions, with filing and response due dates; and
(6) A determination regarding whether briefs will be submitted, and, if so, the due date for the briefs and any reply briefs.

12204. Class Action Claims
A member or associated person may not enforce any arbitration agreement against a member of a certified or putative class action with respect to any claim that is the subject of the certified or putative class action until:
• The class certification is denied;
• The class is decertified;
• The member of the certified or putative class is excluded from the class by the court; or
• The member of the certified or putative class elects not to participate in the class or withdraws from the class according to conditions set by the court if any.

12207. Extension of Deadlines
(a) The parties may agree in writing to extend or modify any deadline for:
• Serving an answer;
• Returning arbitrator or chairperson lists;
• Responding to motions; or
• Exchanging documents or witness lists.

12213. Hearing Locations
Foreign Hearing Location
(1) If the Director and all parties agree, parties may have their hearing in a foreign hearing location and conducted by foreign arbitrators, provided that the foreign arbitrators have:
(A) met FINRA background qualifications for arbitrators;
(B) received training on FINRA arbitration rules and procedures; and
(C) satisfied at least the same training and testing requirements as those arbitrators who serve in U. S. locations of FINRA.

G-20—Gifts, Gratuities, and Non-Cash Compensation
General Limitation on Value of Gifts and Gratuities. No regulated entity or any of its associated persons shall, directly or indirectly, give or provide or permit to be given or provided anything or service of value, including gratuities, in excess of $100 per year to a person (other than an employee or partner of such regulated entity), if such payments or services are in relation to the municipal securities or municipal advisory activities of the employer of the recipient of the payment or service. For purposes of this rule, the term “employer” shall include a principal for whom the recipient of a payment or service is acting as agent or representative.

G-20—Gifts, Gratuities and Non-Cash Compensation
Gifts and Gratuities Not Subject to General Limitation. The general limitation of section (c) of this rule shall not apply to the following gifts, provided that they do not give rise to any apparent or actual material conflict of interest:
(i) Normal Business Dealings. Occasional gifts of meals or tickets to theatrical, sporting, and other entertainments that are hosted by the regulated entity or its associated persons, and the sponsoring by the regulated entity of legitimate business functions that are recognized by the Internal Revenue Service as deductible business expenses; provided that such gifts shall not be so frequent or so extensive as to raise any question of propriety.
(ii) Transaction-Commemorative Gifts. Gifts that are solely decorative items commemorating a business transaction, such as a custom plaque or desk ornament (e.g., Lucite tombstone).
(iii) De Minimis Gifts. Gifts of de minimis value (e.g., pens, notepads or modest desk ornaments).
(iv) Promotional Gifts. Promotional items of nominal value displaying the regulated entity’s corporate or other business logos. The value of the item must be substantially below the $100 limit of section (c) to be considered of nominal value.
(v) Bereavement Gifts. Bereavement gifts that are reasonable and customary for the circumstances.
(vi) Personal Gifts. Gifts that are personal in nature given upon infrequent life events (e.g., a wedding gift or a congratulatory gift for the birth of a child).

G-37-–Political Contributions and Prohibitions on Municipal Securities Business
Voting Right/De Minimis Contribution. The contribution is made by a municipal finance professional or municipal advisor professional who is entitled to vote for the official of the municipal entity and the contribution and any other contribution made to the official of the municipal entity by such person in total do not exceed $250 per election.

FINRA Rule 3210—Accounts at Other Broker-Dealers and Financial Institutions
Transactions and Accounts Not Subject To This Rule. The requirements of this Rule shall not apply to transactions in unit investment trusts, municipal fund securities as defined under MSRB Rule D-12, qualified tuition programs pursuant to Section 529 of the Internal Revenue Code and variable contracts or redeemable securities of companies registered under the Investment Company Act, as amended, or to accounts that are limited to transactions in such securities, or to Monthly Investment Plan type accounts.

FINRA Rule 5110(e)—Corporate Financing Rule-Underwriting Terms and Arrangements: Valuation of Non-Cash Compensation
A lower value equal to 10% of the calculated value shall be deducted for each 180-day period that the securities or underlying securities are restricted from sale or other disposition beyond the 180-day period of the lock-up restriction required by paragraph (g)(1) below. The transfers permitted during the lock-up restriction by paragraphs (g)(2)(A)(iii) through (iv) are not available for such securities.

G-3(a)(ii)—Municipal Securities Representative, Municipal Securities Sales Limited Representative, and Limited Representative-Investment Company and Variable Contracts
Products: Qualification Requirements
The requirements of subparagraph (a)(ii)(A) of this rule shall not apply to:
(1) any person who is duly qualified as a general securities representative by reason of having taken and passed the General Securities Registered Representative Examination before November 7, 2011, and
(2) a municipal securities sales limited representative who is duly qualified as a general securities representative by reason of having taken and passed the General Securities Registered Representative Examination.
(3) any person who is duly qualified as a limited representative – investment company and variable contracts products by reason of having taken and passed the Limited Representative – Investment Company and Variable Contracts Products Examination.

1230. Associated Persons Exempt from Registration
The following persons associated with a member are not required to be registered with FINRA:
(a) persons associated with a member whose functions are solely and exclusively clerical or ministerial; and
(b) persons associated with a member whose functions are related solely and exclusively to:
(1) effecting transactions on the floor of a national securities exchange and who are appropriately registered with such exchange;
(2) transactions in municipal securities;
(3) transactions in commodities; or
(4) transactions in security futures provided that any such person is registered with a registered futures association.

FINRA Rule 1240—Continuing Education Requirements
(B) Minimum Standards for Training Programs — Programs used to implement a member’s training plan must be appropriate for the business of the member and, at a minimum must cover training in ethics and professional responsibility and the following matters concerning securities products, services, and strategies offered by the member:
(i) General investment features and associated risk factors;
(ii) Suitability and sales practice considerations; and
(iii) Applicable regulatory requirements.

FINRA Rule 2320 – Variable Contracts of an Insurance Company
Member Compensation
In connection with the sale and distribution of variable contracts:
(1) Except as described below, no associated person of a member shall accept any compensation from anyone other than the member with which the person is associated. This requirement will not prohibit arrangements where a non-member company pays compensation directly to associated persons of the member, provided that:
(A) the arrangement is agreed to by the member;
(B) the member relies on an appropriate rule, regulation, interpretive release, interpretive letter, or “no-action” letter issued by the SEC that applies to the specific fact situation of the arrangement;
(C) the receipt by associated persons of such compensation is treated as compensation received by the member for purposes of the FINRA rules; and
(D) the record-keeping requirement in paragraph (g)(3) is satisfied.

FINRA Rule 2341(l)—Investment Company Securities: Member Compensation
Any acquiring company or acquired company in a fund of funds structure that has an asset-based sales charge shall individually comply with the requirements of paragraph (d)(2), provided:
(i) If the acquiring and acquired companies are in a single complex and the acquired fund has an asset-based sales charge, sales made to the acquiring fund shall be excluded from total gross new sales for purposes of acquired fund’s calculations under paragraphs (d)(2)(A) through (d)(2)(D); and
(ii) If both the acquiring and acquired companies have an asset-based sales charge:
a. the maximum aggregate asset-based sales charge imposed by the acquiring company, the acquired company, and those companies in combination, shall not exceed the rate provided in paragraph (d)(2)(E)(i); and
b. the maximum aggregate front-end or deferred sales charges shall not exceed 7.25% of the amount invested, or 6.25% if either company pays a service fee.

FINRA Rule 2341(l)—Investment Company Securities: Member Compensation
Execution of Investment Company Portfolio Transactions
(1) No member shall, directly or indirectly, favor or disfavor the sale or distribution of shares of any particular investment company or group of investment companies on the basis of brokerage commissions received or expected by such member from any source, including such investment company, or any covered account.
(2) No member shall sell shares of, or act as underwriter for, an investment company, if the member knows or has reason to know that such investment company, or an investment adviser or principal underwriter of the company, has a written or oral agreement or understanding under which the company directs or is expected to direct portfolio securities transactions (or any commission, markup or other remuneration resulting from any such transaction) to a broker or a dealer in consideration for the promotion or sale of shares issued by the company or any other registered investment company.
(3) No member shall, directly or indirectly, demand or require brokerage commissions or solicit a promise of such commissions from any source as a condition to the sale or distribution of shares of an investment company.
(4) No member shall, directly or indirectly, offer or promise to another member, brokerage commissions from any source as a condition to the sale or distribution of shares of an investment company and no member shall request or arrange for the direction to any member of a specific amount or percentage of brokerage commissions conditioned upon that member’s sales or promise of sales of shares of an investment company.
(5) No member shall circulate any information regarding the amount or level of brokerage commissions received by the member from any investment company or covered account to other than management personnel who are required, in the overall management of the member’s business, to have access to such information.
(6) No member shall, with respect to such member’s activities as underwriter of investment company shares, suggest, encourage, or sponsor any incentive campaign or special sales effort of another member with respect to the shares of any investment company which incentive or sales effort is, to the knowledge or understanding of such underwriter-member, to be based upon, or financed by, brokerage commissions directed or arranged by the underwriter-member.

8320. Payment of Fines, Other Monetary Sanctions, or Costs; Summary Action for Failure to Pay
(b) Summary Suspension or Expulsion
After seven days notice in writing, FINRA may summarily suspend or expel from membership a member that fails to:
(1) pay promptly a fine or other monetary sanction imposed pursuant to Rule 8310 or cost imposed pursuant to Rule 8330 when such fine, monetary sanction, or cost becomes finally due and payable; or
(2) terminate immediately the association of a person who fails to pay promptly a fine or other monetary sanction imposed pursuant to Rule 8310 or a cost imposed pursuant to Rule 8330 when such fine, monetary sanction, or cost becomes finally due and payable.

3110. SUPERVISION
10 Supervision of Supervisory Personnel. A member’s determination that it is not possible to comply with paragraphs (b)(6)(C)(i) or (b)(6)(C)(ii) of Rule 3110 prohibiting supervisory personnel from supervising their own activities and from reporting to, or otherwise having compensation or continued employment determined by, a person or persons they are supervising generally will arise in instances where:
(a) the member is a sole proprietor in a single-person firm;
(b) a registered person is the member’s most senior executive officer (or similar position); or
(c) a registered person is one of several of the member’s most senior executive officers (or similar positions).

1240. Continuing Education Requirements
(2) Failure to Complete
Unless otherwise determined by FINRA, any covered persons who have not completed the Regulatory Element within the prescribed time frames will have their registrations deemed inactive until such time as the requirements of the program have been satisfied. Any person whose registration has been deemed inactive under this Rule shall cease all activities as a registered person and is prohibited from performing any duties and functioning in any capacity requiring registration. Further, such a person may not accept or solicit business or receive any compensation for the purchase or sale of securities. However, such a person may receive trail or residual commissions resulting from transactions completed before the inactive status, unless the member with which such person is associated has a policy prohibiting such trail or residual commissions. A registration that is inactive for a period of two years will be administratively terminated. A person whose registration is so terminated may reactivate the registration only by reapplying for registration and meeting the qualification requirements of the applicable provisions of Rules 1210 and 1220. FINRA may, upon application and a showing of good cause, allow for additional time for a covered person to satisfy the program requirements. If a person designated as eligible for a waiver pursuant to Rule 1210.09 fails to complete the Regulatory Element within the prescribed time frames, the person shall no longer be eligible for such a waiver.

MSRB Rules G-8(a)(xi)—Books and Records to be Made by Brokers, Dealers, Municipal Securities Dealers, and Municipal Advisors: Description of Books and Records Required to be Made: Customer Account Information
iv) Subsidiary Records. Ledgers or other records reflecting the following information:
(A) Municipal securities in the transfer. With respect to municipal securities which have been sent out for transfer, the description and the aggregate par value of the securities, the name in which registered, the name in which the securities are to be registered, the date sent out for transfer, the address to which sent for transfer, former certificate numbers, the date returned from transfer, and new certificate numbers.
(B) Municipal securities to be validated. With respect to municipal securities which have been sent out for validation, the description and the aggregate par value of the securities, the date sent out for validation, the address to which sent for validation, the certificate numbers, and the date returned from validation.
(C) Municipal securities borrowed or loaned. With respect to municipal securities borrowed or loaned, the date borrowed or loaned, the name of the person from whom borrowed or to who loaned, the description and the aggregate par value of the securities borrowed or loaned, the value at which the securities were borrowed or loaned, and the date returned.
(D) Municipal securities transactions not completed on the settlement date. With respect to municipal securities transactions not completed on the settlement date, the description and the aggregate par value of the securities which are the subject of such transactions, the purchase price (with respect to a purchase transaction not completed on the settlement date), the sale price (with respect to a sale transaction not completed on the settlement date), the name of the customer, broker, dealer or municipal securities dealer from whom delivery is due or to whom delivery is to be made, and the date on which the securities are received or delivered. All municipal securities transactions with brokers, dealers and municipal securities dealers not completed on the settlement date shall be separately identifiable as such. For purposes of this rule, the term “settlement date” means the date upon which delivery of the securities is due in a purchase or sale transaction.

FINRA Rules 3110—Supervision
Supervision of Supervisory Personnel. A member’s determination that it is not possible to comply with paragraphs (b)(6)(C)(i) or (b)(6)(C)(ii) of Rule 3110 prohibiting supervisory personnel from supervising their own activities and from reporting to, or otherwise having compensation or continued employment determined by, a person or persons they are supervising generally will arise in instances where:
(a) the member is a sole proprietor in a single-person firm;
(b) a registered person is the member’s most senior executive officer (or similar position); or
(c) a registered person is one of several of the member’s most senior executive officers (or similar positions).

13601. Postponement of Hearings
(b) Postponement Fees
(3) No postponement fee will be charged if a hearing is postponed:
• Because the parties agree to submit the matter to mediation administered through FINRA, except that the parties shall pay the additional fees described in Rule 13601(b)(2) for late postponement requests;
• By the panel in its own discretion; or
• By the Director in extraordinary circumstances.