FINRA Issues $50 Million Rebate to Member Firms

July 02, 2025

Features

  • FINRA Issues $50 Million Rebate to Member Firms 
    FINRA provided fee rebates this week to active member firms in good standing based on their 2024 regulatory fees. The FINRA Board approved the $50 million fee rebate based partly on better-than-expected net income in 2024, as well as our updated projections of revenues, expenses, and overall market conditions in coming years. The rebate is consistent with FINRA’s Financial Guiding Principles and status as a not-for-profit membership organization.  

    Eligible member firms should have received a credit amount to their Flex-Funding account in FINRA E-Bill by yesterday, July 1. Entitled firm users access FINRA E-Bill through FINRA Gateway and will see the E-Bill icon on the left side navigation bar. For guidance on how to request a refund check from their Flex Funding account, firms may refer to page 17 in the E-Bill user guide. FINRA will send a letter to each eligible firm regarding its specific rebate amount.  

    A blog by FINRA President and CEO Robert Cook provides more information about the rebate, and member firms may contact [email protected] with any questions. In addition, FINRA released our 2024 Annual Financial Report and Annual Budget Summary on June 27, and they are available here and here. 
     
  • Notice on CAT Cost Recovery Fees  
    FINRA began applying a new prospective CAT cost recovery fee to transactions in eligible securities by CAT executing brokers yesterday, July 1, and has provided notice that Prospective CAT Cost Recovery Fee 2025-1 will no longer be in effect. The last invoice for this fee will be sent to member CAT executing brokers in July, with payments due in August. For more information on the new fee, Prospective CAT Cost Recovery Fee 2025-2, see the rule proposal that FINRA filed with the SEC, as well as the related CAT Fee 2025-2 filing.  
     
  • FinCEN Flags Three Mexico-Based Entities as Primary Money Laundering Concern 
    FinCEN, a unit of the Treasury Department, identified three Mexico-based financial institutions—CIBanco S.A., Intercam Banco S.A., and Vector Casa de Bolsa, S.A. de C.V.—to be of primary money laundering concern in connection with over $100 million in illicit opioid trafficking. The orders, which FINRA highlighted in a June 27 alert to member firms, prohibit covered financial institutions from transmitting funds from the three entities. They will take effect 21 days after they are published in the Federal Register.  
     
  • FinPro Adopts New Modern Interface  
    FINRA’s application for industry professionals, the Financial Professional Gateway (FinPro), updated its interface on June 26 to make completing compliance assignments quicker and easier. PDF guides, a video introducing the interface, and other support materials for users and firms are available on the FinPro section of our website. 
     
  • Investor Insights on Fractional Shares and Value Investing 
    Here are two new Investor Insights on investment strategies. Firms are welcome to share them and other Investor Insights with customers.   
     
    • Fractional shares offer a way for investors to buy less than a share of stock. This article discusses some factors to consider with this type of investing.
    • Value investors seek to identify stocks trading at a discount to their true worth. This Investor Insight explains the basics of this strategy.  
       
  • ICYMI: New Pilot Program for Revised Communications 
    FINRA launched a voluntary pilot program on July 1 to allow firms to upload communications that have been revised to comply with applicable standards without incurring an additional filing fee. To qualify, firms must meet certain conditions, such as limiting their revisions to those identified by FINRA’s Advertising Regulation Department in the original review letter. To receive a “consistent with applicable standards” letter, the revised communication must address all concerns cited in the original review letter. Visit this page for more information on the program, which will run through at least December 31.
Regulatory Information, Upcoming Deadlines, Effective Dates
New
Reminders
  • Amendments Relating to Immediately Effective FINRA Sanctions and Actions: FINRA recently proposed amending our rules relating to certain sanctions and regulatory measures that may take effect immediately. The proposed amendments would provide FINRA staff and adjudicators authority to grant respondents and applicants, where appropriate, the opportunity to seek a stay from the SEC or take other appropriate action when faced with an immediately effective sanction or other regulatory measure. These rule changes will be implemented on July 4. 
     
  • FINRA Forward: FINRA’s latest initiatives to support members, markets and investors. 
     
    • Capital Acquisition Broker Rules: FINRA has proposed amending our Capital Acquisition Broker rules. Comments are due to the SEC by July 7.   
       
    • Gift Limit: FINRA has proposed increasing the limit on gifts our members can give to employees of an institutional customer, vendor, or counterparty. Comments are due to the SEC by July 8.   
       
    • TRACE Reporting Timeframe: FINRA has proposed keeping the currently effective 15-minute timeframe for TRACE. Comments are due by July 11. 
       
    • The Modern Workplace: Regulatory Notice 25-07 requests comment on how FINRA can further evolve our rules, guidance, and processes to reflect modern business practices and markets; support innovation and new technologies; promote efficiency; and eliminate unnecessary regulatory burdens. Comments are due to FINRA by July 14.   
       
    • Securities Offering Review Fees: The securities offering review fee changes that were scheduled to take effect on July 1, 2025 will now be implemented on January 1, 2027.  
       
    • Rule Modernization: Regulatory Notice 25-04 requested comment in connection with a broad review of FINRA’s regulatory requirements applicable to member firms and associated persons. Comments were due to FINRA by June 11, but we still welcome feedback.  
       
    • Capital Formation: Regulatory Notice 25-06 requested comment on modernizing FINRA rules, guidance, and processes to further facilitate capital formation and reduce unnecessary regulatory costs and burdens impacting the capital raising process. Comments were due to FINRA by June 18, but we still welcome feedback.
Disciplinary Actions
  • FINRA publishes disciplinary actions to remind members of specific conduct that violates FINRA rules and may result in disciplinary action. The June 2025 Monthly Disciplinary Actions are available here.
Education and Compliance Programs
Registration Systems Foundation | Aug. 19-20 and Oct. 28-29 | 12–5 pm | Virtual Event 
 
Registration Systems Foundation | Sept. 16 | 8:30 am–5 pm | Rockville, MD | In-Person Event  
 
Disclosure Reporting Boot Camp | Sept. 17-18 | 8:30 am–5 pm | Rockville, MD | In-Person Event

Small Firm Conference | Oct. 9-10 | Dallas, TX | Hybrid Event
 
Joint Compliance Outreach Program for Municipal Advisors, Dealers, and Other Market Professionals | Hosted by FINRA, the SEC and the MSRB | Nov. 18-19 | Virtual Event
Resources
Member Firm Hub – Latest guidance, resources, educational opportunities and more. 
 
Comment Process – On-demand webinar on how to provide comments on FINRA Forward proposals, as well as the impact of comment letters and how they are used. 
 
Involvement and Election Process – How to engage with FINRA to help carry out our mission of protecting investors and safeguarding market integrity. Members can contribute their unique perspectives and skillsets with rotating terms on FINRA committees and other opportunities. Submit an indication of interest to be considered to join a FINRA advisory committee or speak at a FINRA event by clicking here.
 
Membership Application Program (MAP) Tools – Guidance and other resources to help current members prepare for their continuing membership application (CMA) and new applicants prepare for a new member application (NMA).
 
FINRA Unscripted – Monthly podcast on a range of topics important to FINRA members and other stakeholders.
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About FINRA
FINRA is a not-for-profit organization dedicated to investor protection and market integrity. FINRA regulates one critical part of the securities industry—member brokerage firms doing business with the public in the U.S. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org.
Regulatory Contacts
FINRA By-Laws require member firms to maintain an email account on behalf of their executive representatives, to facilitate firm notification of important information. In light of this, requests from executive representatives to be removed from this email list cannot be honored.
 
Firms wishing to change the name or email address of their executive representative or designated assistant should use the FINRA Contact System: http://www.finra.org/FCS.
 
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