[ by Melanie Gretchen ] FINRA has increased the rate it charges its members for a key revenue stream.  This month, the SEC approved an increase in the TAF ( Trade Activity Fee) rate for sales of covered equity securities, to fund FINRA's regulatory activities, including examinations, financial monitoring, and FINRA’s policy-making, rulemaking and enforcement activities. How TAF Feeds into FINRA. FINRA’s primary member regulatory pricing structure is made up of the Personnel Assessment, the Gross Income Assessment and the TAF. Effective 7/1/12, the TAF rate will increase from $0.000095 per share for each sale of a covered equity security to $0.000119 per share, with a corresponding increase to the per-transaction cap for covered equity securities from $4.75 to $5.95.  It will apply to any sale of a covered equity security subject to the TAF occurring on or after July 1, 2012. Economic Woes? The SEC attributed its approval of the rate change to "the decreased volume of trading in the equity markets, and in order to stabilize revenue flows necessary to support FINRA’s regulatory mission."  The TAF Self-Reporting Form, available on FINRA’s website, will reflect this new rate beginning with the TAF Self-Reporting Forms due on August 14, 2012; they reflect trades subject to the TAF occurring in July 2012. History of Increase. In the announcement on its website, FINRA said it will periodically review revenue from these fees in conjunction with the costs to FINRA of regulating its members to determine the applicable rate of the fees, by Section 1 of Schedule A. However, FINRA's last TAF rate increase occurred earlier this year, beginning with trades occurring on or after March 1, 2012. At that time, the TAF rate for covered equity securities was increased to $0.000095 per share for each sale of a covered equity security, with a maximum charge of $4.75 per trade. Given the trend for lower volume levels, however, FINRA’s TAF projections for the year continue to indicate a shortfall, notwithstanding the rate change put into place effective March 1, 2012. Questions concerning this Notice should be directed to: FINRA Finance at (240) 386-5397; or The Office of General Counsel at (202) 728-8071. For further details, go to [FINRA REGNOTE 12-31, JUNE 2012].