FINRA follows July's Fee Increase with a February Fee Waiver.

[ by Howard Haykin ]

FINRA is adopting a waiver process for the continuing membership application fee, in those circumstances where FINRA determines that the application does not require substantial staff review.  The waiver process is being added to Section 4 of Schedule A to the FINRA By-Laws and FINRA filed the rule change for immediate effectiveness. 

FINRA is also amending NASD Rules 1013 (New Member Application and Interview) and 1017 (Application for Approval of Change in Ownership, Control, or Business Operations) to provide for a refund of the application fee (less a $500 processing fee) if a new member applicant or continuing membership applicant withdraws an application within 30 days after filing the application.

Why The Rule Change?  Why Now?  Effective 7/23/12, FINRA raised the fee for continuing membership applications (“CMAs”).  In response to comments about the fee increase, FINRA now offers a new fee waiver where a CMA is proposing less significant changes that do not require substantial staff review.

Currently, in accordance with Section 4(i) of Schedule A to the FINRA By-Laws applicants are assessed a CMA fee ranging from $5,000 to $100,000, depending on the number of registered persons associated (or to be associated) with the applicant and the type of change in ownership, control, or business operations being contemplated (merger, material change, ownership change, transfer of assets, or acquisition).

- e.g.,  the fee structure assesses a member with only 1 to 10 registered persons a fee ranging between $5K and $7.5K, depending on the type of CMA.  A member with 301 to 500 registered persons is assessed a fee ranging between $10K and $30K, again depending on the type of CMA. This tiered fee structure recognizes that more complex changes and larger applicants generally require additional staff resources.

For further details, go to:   [ FINRA Rule Filing 13-15, 2/5/13 ].