FINRA Seeks to Raise Financial Member Fees in 2025

The Financial Industry Regulatory Authority announced a proposal to increase fees for financial industry firms. The proposal would increase the annual fees collected from FINRA members by an estimated $450 million dollars once fully implemented in 2029.

According to the proposal submitted for approval to the U.S. Securities and Exchange Commission, FINRA said that it plans to implement the fee increase in phases between 2025 and 2029 at a compound annualized growth rate of 5.3%. FINRA said that it would aim to collect more than 90% of the newly proposed fees in 2026 or later.

The proposed fee increases are intended to cover FINRA’s growing operating costs and ensure the organization can continue fulfilling its regulatory mission amid an increasingly complex financial landscape. The proposed changes would raise a number of fees, including those for “core regulatory functions” and the use of FINRA programs and services.

According to the release, firms with fewer than 10 representatives would see an annual increase of about $625, while small firms with up to 150 reps would see an annual increase of about $4,135 on average. Mid-size firms with up to 499 reps would see an annual increase of about $82,500, and large firms would see an increase of about $415,000.

FINRA claimed that the need for increased funding is driven by several factors, such as rising technology costs, elevated wage inflation, increased headcount, and the growing complexity of FINRA’s regulatory obligations. The agency also noted that its cumulative costs have only increased 41% during a 10-year period from 2013 to 2023, compared to 129% for the industry.

FINRA last increased member fees in 2022 as part of an effort to secure an additional $225 million in operating revenue.

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