Recently, FINRA
proposed a rule change for immediate effectiveness,
SR-FINRA-2024-019, to adjust FINRA fees to provide sustainable funding for its regulatory capabilities, citing increasing costs related to cloud hosting, cybersecurity and wage and personnel growth. The proposal includes FINRA fee increases, including core regulatory fees such as the gross income assessment, trading activity fee, and personnel assessment, as well as select use-based fees. As described by FINRA, these changes are designed to provide members with sufficient advance notice for financial planning and budgeting, ensuring a smooth transition to the new fee structure. The proposed rule change would raise the fee cap to $1,125,000, and the cap for well-known seasoned issuers would increase to $560,000. The fee adjustments will be phased in gradually over a five-year period beginning January 1, 2025, with full implementation by 2029.
Additionally, fees for branch office registration, system processing, qualification examinations and continuing education will also increase. New fees for private placement reviews and adjustments to public offering review fees were also proposed. In addition, the proposal included measures to enhance operational efficiency and effectiveness.
