[ by Howard Haykin ]

Beginning in 2012, FINRA assessed member firms quarterly fees that were used to finance the costs of the Governmental Accounting Standards Board (GASB).  Fees were allocated based on the total par value of municipal securities transactions reported by each firm, relative to the total par value of such transactions reported by all firms.  Firms that transacted few municipal securities transactions in a given quarter had their fees waived.  Firms that did not engage in reportable municipal securities transactions during a particular calendar quarter were not subject to the GASB Accounting Support Fee for that quarter.

For the full 2012 year, FINRA collected more fees from member firms than GASB actually expended.  The excess balance of $2,210,000 will, thus, be applied to GASB's 2013 budgeted expenses, which are estimated at $9,600,400.  Therefore, FINRA will need only to collect from its members $7,390,400 ($9,600,400-$2,210,000), and it will do so in quarterly assessments of $1,847,600. 

Keep in mind that fee computations for 2013 are unchanged from 2012.  The formula is available in April's Regulatory Notice 13-17 because some firms may seek to pass the GASB Accounting Support Fee onto customers engaged in municipal securities transactions.

FINRA Staff Contacts.   Direct questions concerning this Notice to:   Finance Department at (240) 386-5313; or Office of General Counsel at (202) 728-8071.

For further details, go to:   [ FINRA RegNote 13-17, April 2013 ].

The writer may be contacted at:  howard@compliance-insights.com.