FINRA Plans to Increase Fees

by NCS Regulatory Compliance on May 24, 2012

FINRA’s chief executive Richard Ketchum recently emailed Executive Representatives the news that FINRA’s revenues have decreased and “…resulted in a significant loss for fiscal year 2011.” As a result, FINRA is proposing some fee hikes to help meet the decrease in revenues, the first such hikes in more than five years. Which fees will increase and how will this affect your firm? Take a look.

 

Advertising review fees bumped up

One area in which FINRA has proposed a fee hike for 2012 is in broker-dealer advertising reviews. The proposed fee will go from $100 to $125 per filing, with expedited filings increasing from $500 to $600 per filing.

 

Change in Membership fees to jump

Among the pricing proposals FINRA has made to the SEC for 2012 is, for the first time, a fee to file a broker-dealer Change in Membership (CMA) application. If this is approved, FINRA would create separate fees for changes in ownership, transfer of assets, material changes in business, etc., and would align the fee charged with the complexity of the application.

 

On that same note, new broker-dealer membership application fees would range from $7,500 to $55,000, depending on the size of the firm and the complexity of the products offered by the firm applying for membership. Current new broker-dealer membership application fees are $3,000 or $5,000, depending on the business of the firm.

 

Potential fee increases for 2013

Certain registration and disclosure fee increases are being proposed for 2013, which could include fingerprint fees, disclosure review fees, late disclosure fees, and initial and transfer filing fees. Whether these fee hikes are enacted remains to be seen.

 

Prepare for regulatory changes

Broker-dealers should plan for the potential increases by evaluating whether there are any potential changes in business or ownership on the horizon, so they can file the CMA before the new fee or file advertising early to avoid fee increases. To learn more about the new fee proposals and keep abreast of implementation dates, visit RegulatoryCompliance.com.

 

 

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