The U.S. Financial Industry Regulatory Authority Inc. (FINRA) is seeking to boost the fees it collects from the industry by US$225 million annually by 2024.
In a rule filing to the U.S. Securities and Exchange Commission, FINRA proposed to phase in a fee increase starting in 2022 to give the industry time to adjust.
“This targeted revenue amount is calculated to bring FINRA’s revenues in line with its anticipated costs,” the self-regulatory organization said in the filing.
Currently, FINRA is running a deficit, projected at US$210.2 million for fiscal 2020.
The increase will be felt across most of FINRA’s major fee categories, representing approximately a 5% compounded annual growth rate (CAGR) between this year and 2024.
FINRA said that it hasn’t materially increased fees since 2011. Over the 2011 to 2024 period, the proposed hike would represent a 2.4% CAGR, it noted.
“While this increase is material, FINRA’s fees will continue to represent a very small dollar amount relative to industry revenues,” FINRA said.
It estimated that the increased fees will amount to approximately 0.22% of industry revenues.