[ by Howard Haykin ] FINRA filed for immediate effectiveness to change the rules pertaining to fees relating to the Central Registration Depository (CRD or CRD system).  The change will impact Sections 4 and 6 of Schedule A to the FINRA By-Laws.  The new rates are scheduled to go into effect 1/2/13. Initial/Transfer Registration Fee. Under Section 4(b)(1) of Schedule A, FINRA charges an $85 fee for each initial or transfer Form U4 filed by a member in the CRD system to register an individual.  A discounted fee is charged for individuals who transfer as a result of an acquisition (all or part) of another member firm's business.  Discounts range from 10-50%, based on the number of registered personnel being transferred. The registration fee will increase to $100; no change to the current discount schedule.  The currrent fee has been in effect since 1995, even though FINRA has regularly enhanced the CRD system with new features and functionality, among other changes to the system. Reporting Certain Disclosure Events or Proceedings. As part of the securities industry's  licensing and registration process, individuals and members are required to report certain disclosure events or proceedings to the CRD system - e.g., certain criminal charges and convictions, regulatory actions, investment-related civil judgments and injunctions, and financial events such as bankruptcies and unsatisfied liens.  Such disclosures are made through Form U4 or Form U5. Similarly, members report disclosure matters in which they or a control affiliate have been involved via Form BD. When a disclosure filing is made for either an individual or member, FINRA must, among other things, confirm that the matter is properly reported; review any documentation submitted and/or determine whether additional documentation is required; conduct any necessary independent research; and, depending on the matter reported, analyze whether the event or proceeding subjects the individual or member to a statutory disqualification pursuant to Section 3(a)(39) of the Act. Under Section 4(b)(3) of Schedule A, FINRA assesses a $95 fee to process an initial or amended Form U4 or Form U5 that includes the initial reporting, amendment or certification of one or more disclosure events or proceedings. FINRA currently does not charge a fee to process a Form BD that contains a disclosure event or proceeding. The disclosure filing fee for Forms U4 and U5 will increase to $110.   FINRA also is establishing a disclosure filing fee for Form BD of $110.  The reason for the rate change is that reviewing disclosure information has become more complex, in part because Forms U4 and U5 have added further disclosure questions and FINRA's By-Laws have been revised to expand the categories under which an individual or member can be subject to a statutory disqualification.  Since increased costs to administer the CRD program have not been matched by increases in fee rates since 1995, FINRA is making  the change currently. System Processing Fee. Under Section 4(b)(6) of Schedule A, FINRA currently charges an annual $30 system processing fee for each member's registered individuals.  The system processing fee will be increased to $45, the first such increase since January 2000. Fingerprint Fees. FINRA processes fingerprints submitted by members on behalf of their associated persons who are required to be fingerprinted pursuant to Section 17(f)(2) of the Act9 and Rule 17f-2 thereunder.  Under Section 4(b)(4) of Schedule A, FINRA currently charges a fee of $13 to process each set of fingerprints submitted by a member, plus an additional fee that's passed along to the FBI. Members submit fingerprints to FINRA either electronically or via a hard copy fingerprint card.  The processing fee for fingerprints submitted electronically will increase to $15; fingerprints submitted by a hard copy fingerprint card will increase to $30. This is the first such increase since 2003. For processing and posting results and fingerprints that are submitted by members, FINRA also processes and posts fingerprint results and identifies information submitted by a member that have been processed through another SRO.  For this service, FINRA has been charging $13 per submission.  That cost is increasing to $30.  This fee has been static since 2003. Mass Transfer Registration Fees. FINRA's  Mass Transfer Program allows for the bulk transfer of registration and fingerprint information within the CRD system when a member is involved in a business combination such as a merger, consolidation or reorganization with another member.  Under Section 6(b) of Schedule A, a member that FINRA determines to be a successor organization to a predecessor member is not required to pay the fees for the re-registration of branch offices and personnel of the predecessor as part of the mass transfer.  A non-successor member, however, is required to pay these re-registration fees. FINRA is eliminating the exception to the payment of re-registration fees for successor members involved in a mass transfer - i.e., elimination of the exception will result in all members that participate in FINRA's Mass Transfer Program to be assessed fees for the re-registration of branch offices and personnel of the predecessor member. Late Disclosure Fee.   Under Section 4(h) of Schedule A, FINRA charges a fee of $10 per day, up to a maximum of $300, for each day that a new disclosure event or a change in the status of a previously reported disclosure event is not timely filed on an initial or amended Form U5 or an amended Form U4.  This fee is assessed starting on the day following the last date on which the event or change in status was required to be reported. The late disclosure fee will increase to $100 for the first day that an applicable disclosure event is not timely filed and $25 for each subsequent day, up to a maximum of 60 days.  This means that the maximum amount of the late disclosure fee will increase from $300 to $1,575. For further details, go to:   [FINRA Rule Filing 12-30, 6/11/12].