FINRA Weighs Rolling Back 2024 Fee Increases as Elevated Trading Revenue Fuels $150 Million Rebates
Updated
Updated · Wealth Management · May 13
FINRA Weighs Rolling Back 2024 Fee Increases as Elevated Trading Revenue Fuels $150 Million Rebates
2 articles · Updated · Wealth Management · May 13
FINRA is discussing whether to cut, delay or defer member fee increases approved in 2024 after trading-driven revenue came in above projections, Board Chair Scott Curtis said at the regulator’s annual conference.
The five-year fee plan was adopted after FINRA warned expenses would outpace revenue, citing wage inflation and costly oversight of SEC rules including Regulation Best Interest.
Higher transaction volume in volatile markets instead boosted funding enough for FINRA to issue a $50 million rebate in 2025 and a $100 million rebate earlier this year.
By 2029, the approved schedule would raise annual costs by about $415,000 for large firms and $4,135 for small firms, which account for roughly 42.8% of members.
Any rollback would still need SEC approval, underscoring how a nonprofit regulator’s finances have shifted with market activity and interest rates.
Is FINRA's potential fee rollback a prudent response to market changes or a sign of flawed financial planning?
Amidst a revenue boom, should FINRA's 'excess' funds go to member firms or to unpaid investor victims?