Fee Rebate for Member Firms
Dear Member Firms:
As a not-for-profit membership organization, FINRA is committed to transparency and engagement with our members regarding our finances. Accordingly, we want to update you about a fee rebate to our member firms.
FINRA’s Financial Guiding Principles
Informed by our Financial Guiding Principles, FINRA’s Board of Governors approves all major financial decisions for the organization, including FINRA’s annual budget, significant capital expenditures, overall compensation, increases to regulatory fees and rebates to members. The Board reviews FINRA’s financial outcomes on a regular basis to consider whether current revenues and expenses warrant any changes to its financial planning. Consistent with the Financial Guiding Principles and FINRA’s status as a not-for-profit membership organization, responses to material excess revenues may include a fee rebate or a reduction or deferral in fee increases.
2024 Net Income and Rebate to Member Firms
As reflected in our 2024 Annual Financial Report, FINRA had better than expected net income in 2024 driven, in part, by fees from higher-than-expected trading activity and industry revenues. Based on these results, and after consideration of FINRA’s updated projections regarding revenues, expenses, and overall market conditions for the next several years, FINRA’s Board has approved a $50 million rebate for active member firms currently in good standing that paid FINRA fees in 2024. As noted above, providing a fee rebate under these circumstances is consistent with FINRA’s Financial Guiding Principles and status as a not-for-profit membership organization.
Each qualifying member firm will receive a rebate amount determined based on its 2024 regulatory fees. The rebate includes the full annual minimum fee of $1,200 (prorated if assessed for part-year), with the remainder allocated proportionally based on each firm's other 2024 regulatory fees. This allocation method is consistent with FINRA’s approach in prior discretionary rebates to member firms.
FINRA will send a letter to each eligible member firm regarding the specific rebate amount that the firm will receive. The rebate will be paid via a credit amount to the FINRA account into which firms pay their regulatory fees. We plan to provide the rebate to firms on July 1, 2025. Any questions regarding this rebate may be directed to [email protected].
FINRA believes that the fee rebate will not impact its short- or long-term financial planning or ability to perform our regulatory responsibilities for the benefit of investors, members and capital markets.
FINRA’s member firms play a vital role serving investors and capital markets. We sincerely appreciate the time and effort that many of you contribute—through our Board, our committees and working groups, and many other channels—to inform and support FINRA’s regulatory functions. Your ongoing engagement is essential to FINRA’s effectiveness as a self-regulatory organization.
Sincerely,
Scott A. Curtis, Board Chair and Large Firm Governor
Robert W. Cook, President and Chief Executive Officer