FINRA Files to Raise Fees Starting in 2025

Fee increases for midsize and small firms would be as follows:

• The median micro firm would anticipate an annual increase of 3.4%, translating to a dollar increase of $625.
• For other small firms, the median firm would anticipate an annual increase of 3.9%, translating to a dollar increase of approximately $4,135.
• The median midsize firm would anticipate a 5% annual increase, translating to a dollar increase of approximately $82,500.

“Taken together, the proposed rule change is projected to generate additional revenue of between $40 million and $160 million each year compared to the previous year from 2025 through 2029,” FINRA said.

Cumulatively, FINRA continued, the proposed rule change “would increase FINRA’s annual fee revenues by an estimated $450 million (once fully implemented in 2029) as compared to the annual fee revenues that would have existed in the absence of the proposed rule change,” according to the broker-dealer self-regulator. The plan “is calibrated to cover FINRA’s projected budget deficit and achieve a balanced budget by 2029.”

A minority of fees would go into effect in 2025, most fees implemented in 2026 or later, and several fees phased in over several years between 2025 and 2029, FINRA said.

“Thus, under the proposed rule change, FINRA would aim to collect more than 90% of the revenue it seeks to raise in 2026 or later,” FINRA said.

After implementing the planned adjustments, total revenue across all FINRA fees is projected to increase at a compounded annualized growth rate of 5.3% between 2025 and 2029.

Brad Bennett, former FINRA enforcement chief, told ThinkAdvisor Wednesday that the fee proposal is "reflective of the financial tightrope FINRA is trying to walk between continuing operating losses and the need to invest in the CAT [Consolidated Audit Trail] and other technology initiatives."