Notice2026-19393
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Implementation Schedule of Amendments To Schedule A to the FINRA By-Laws Adopted in SR-FINRA-2024-019 as Modified in SR-FINRA-2025-007
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 23, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 183 (Wednesday, September 23, 2026)</title>
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[Federal Register Volume 91, Number 183 (Wednesday, September 23, 2026)]
[Notices]
[Pages 60427-60433]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19393]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106410; File No. SR-FINRA-2026-020]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Modify the Implementation Schedule of
Amendments To Schedule A to the FINRA By-Laws Adopted in SR-FINRA-2024-
019 as Modified in SR-FINRA-2025-007
September 18, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 15, 2026, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by FINRA.
FINRA has designated the proposed rule change as ``establishing or
changing a due, fee or other charge'' under Section 19(b)(3)(A)(ii) of
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the
proposal effective upon receipt of this filing by the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to modify the implementation schedule of
amendments adopted in SR-FINRA-2024-019, as modified in SR-FINRA-2025-
007, with respect to the adjustment of FINRA fees to provide
sustainable funding for FINRA's regulatory mission.
The text of the proposed rule change is available on FINRA's
website at <a href="http://www.finra.org">http://www.finra.org</a> and at the principal office of FINRA.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Background
In November 2024, FINRA filed for immediate effectiveness a
proposed rule change to increase the revenues that FINRA, as a not-for-
profit self-regulatory organization, relies upon to fund its regulatory
mission.\5\ The fees raised related to FINRA's core regulatory
functions as well as select fees related to the use of FINRA programs
and services and were designed to closely align FINRA's revenues with
its projected costs. The fee increases would be phased in gradually
over a five-year period from 2025 through 2029.\6\
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\5\ See Securities Exchange Act Release No. 101696 (November 21,
2024), 89 FR 93709 (November 27, 2024) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2024-019) (``2024 Fee
Filing'').
\6\ See supra note 5. For operational reasons and to give
members and issuers additional time to budget and plan, FINRA
modified the implementation schedule for two of the fee changes
adopted in the 2024 Fee Filing: (i) the new fee related to review of
private placements submitted to FINRA's Corporate Financing
Department (``Corporate Financing'') (the ``Corporate Financing
Private Placement Review Fee''); and (ii) the increases to the fee
caps related to review of public offerings submitted to Corporate
Financing (the ``Corporate Financing Public Offering Review Fee'').
Implementation of those fees was postponed from July 1, 2025 to
January 1, 2027. See Securities Exchange Act Release No. 103232
(June 11, 2025), 90 FR 25684 (June 17, 2025) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2025-007).
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Over recent years, FINRA's operating revenues have increased
significantly--well beyond projections--and may continue increasing in
the coming years. This revenue increase is driven by a combination of
higher average daily trading volume, higher member revenues, and the
impact of the 2024 Fee Filing.\7\
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\7\ See FINRA, 2026 Annual Budget Summary, <a href="https://www.finra.org/sites/default/files/2026-04/2026-finra-annual-budget-summary.pdf">https://www.finra.org/sites/default/files/2026-04/2026-finra-annual-budget-summary.pdf</a>.
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[[Page 60428]]
In addition, FINRA's expenses have been reduced. In 2025, FINRA
undertook a strategic realignment to enhance the efficiency and
effectiveness of its operations. This realignment is consistent with
FINRA's commitment to a culture of continuous improvement with a
rigorous focus on carefully managing costs and identifying new
efficiency opportunities where consistent with its mission. Among other
changes, this included the consolidation of Enforcement, Member
Supervision and Market Oversight functions into a new Regulatory
Operations department; the consolidation of certain market services and
utility functions into a new Market & Regulatory Services department;
leveraging innovative technology throughout our regulatory program; a
voluntary buyout for staff; and other organizational changes and
enhancements.\8\ This realignment has been primarily responsible for a
ten percent budgeted expense reduction for fiscal year 2026.\9\
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\8\ See supra note 7.
\9\ See supra note 7.
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FINRA actively monitors its reserves and takes action as
appropriate to address potential surpluses (or reserve levels above
target).\10\ In response to higher-than-anticipated fees received in
2025 and 2024, FINRA rebated $100 million of 2025 fees in March 2026,
and rebated $50 million of 2024 fees in 2025.\11\ FINRA is also
prepared to further address revenue surpluses in 2026.
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\10\ See supra note 7. FINRA's Financial Guiding Principles
explain the extent to which FINRA relies on its financial reserves--
originally derived from the sale of Nasdaq--to help support its
regulatory mission. See FINRA's Financial Guiding Principles,
<a href="https://www.finra.org/sites/default/files/finra_financial_guiding_principles_0.pdf">https://www.finra.org/sites/default/files/finra_financial_guiding_principles_0.pdf</a>. Information about FINRA's
financial reserves is provided each year in FINRA's published annual
financial reports. See FINRA Financial Reports and Policies,
available at <a href="https://www.finra.org/about/annual-reports">https://www.finra.org/about/annual-reports</a>. FINRA
strives to maintain an appropriate level of reserves, which the
FINRA Board of Governors has determined to be at least one year of
expenditures.
\11\ See FINRA, 2026 Annual Budget Summary supra note 7.
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However, looking forward, if FINRA implements the remaining fee
increases as scheduled, FINRA anticipates that its revenues will
continue to exceed its expenses, resulting in excess reserve levels
beyond those targeted under the Financial Guiding Principles.\12\
Therefore, FINRA is now proposing to modify the implementation schedule
for the remaining fee increases by delaying the implementation of those
fee changes by two years.
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\12\ As explained in the 2024 Fee Filing, FINRA has made--and
continues to make--reasonably conservative assumptions using a
variety of information points, including historical data and
anticipated trends. If key assumptions change materially, FINRA
would consider various modifications as appropriate, including
further fee rebates, reducing future fees in a manner that preserves
FINRA's ability to support the demands of its mission, or investing
in FINRA's operations to continue to meet the demands of the modern
marketplace. See 2024 Fee Filing, supra note 5; FINRA, 2026 Annual
Budget Summary, supra note 7.
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Proposal
The proposed rule change would postpone for two years
implementation of all fee changes adopted in the 2024 Fee Filing
scheduled to take effect between January 1, 2027 and January 1, 2029.
This includes the following core regulatory fees: Gross Income
Assessment (or GIA), Trading Activity Fee (or TAF), Personnel
Assessment (or PA), Branch Office System Processing Fee, Registration
Fees, System Processing, and Renewal Late Fee. It also includes two
use-based fees: Corporate Financing Private Placement Review Fee and
Corporate Financing Public Offering Review Fee.\13\
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\13\ The Corporate Financing-related fees are scheduled to be
implemented beginning on January 1, 2027. See supra note 6. This
proposed rule change does not impact the following fees raised in
the 2024 Fee Filing that were fully implemented in 2025 or 2026:
Advertising Regulation Review, Branch Office Registration, Dispute
Resolution Services Arbitration, Regulation T and Exchange Act Rule
15c3-3(n) Requests for Extension of Time, Continuing Education
Regulatory Element, Late Disclosure, and Qualification Examination.
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During the two-year postponement, members would be charged at the
2026 rates. The postponement would result in the following
implementation schedule for the remaining fee changes:
<bullet> On January 1, 2029, the previously adopted 2027 fee
changes would take effect;
<bullet> On January 1, 2030, the previously adopted 2028 fee
changes would take effect; and
<bullet> On January 1, 2031, the previously adopted 2029 fee
changes would take effect.\14\
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\14\ FINRA includes the 2031 rates for completeness when
comparing this proposed rule change (2027 to 2031) to the 2024 Fee
Filing (2025 to 2029). FINRA notes, however, that no rate changes
will occur in 2031 as compared to the 2024 Fee Filing (i.e., under
the 2024 Fee Filing, the 2029 rates would have applied in 2031, as
they would under this proposed rule change).
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The postponed revenue collection resulting from the proposed rule
change would result in member savings as compared to the 2024 Fee
Filing. Savings for members is measured as the difference between the
total revenue expected to be collected from the member under the fee
changes adopted in the 2024 Fee Filing over the four-year transitional
period (i.e., 2027 through 2030) and the total expected to be collected
from the member according to this proposed rule change over the same
period. The median savings rate \15\ for all members would be 7.2%,
representing approximately $718 million in total savings to members
over the four-year transitional period. As discussed further below, the
estimated savings rates for FINRA members would be similar for members
based on firm size and business model. The savings accrue over only the
four-year transitional period, as under the proposed rule change the
fee rates in 2031 and later years would be the same as under the 2024
Fee Filing.
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\15\ The savings rate for a member is its savings divided by the
total revenue expected to be collected from the member under the fee
changes adopted in the 2024 Fee Filing over the four-year
transitional period.
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The proposed rule change would allow FINRA to maintain its reserve
balance at its target level based on FINRA's projected revenue and
costs,\16\ while preserving the equitable allocation of fees adopted in
the 2024 Fee Filing.\17\
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\16\ Anticipated costs would not include potential costs
associated with new services that may be initiated or approved in
the future. FINRA may submit separate fee filings to cover program
costs for new services.
\17\ FINRA has explained that numerous operations and services
must be funded by general revenue sources, which include both core
regulatory and other use-based fees. FINRA's current fee structure
is designed to ensure sufficient funding to meet all of its
regulatory obligations in a manner that equitably allocates fees
among FINRA members, notwithstanding the fluctuations in different
revenue streams and cost drivers that are naturally expected to
occur over time. The Commission has historically agreed that this
overall cost-based pricing structure ``is reasonable in that it
achieves a generally equitable impact across FINRA's membership and
correlates the fees assessed to the regulatory services provided by
FINRA.'' See Securities Exchange Act Release No. 61042 (November 20,
2009), 74 FR 62616, 62620 (November 30, 2009) (Order Approving File
No. SR-FINRA-2009-057); see also 2024 Fee Filing supra note 5.
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The proposed implementation schedule for each specific fee is
described below.
[[Page 60429]]
Gross Income Assessment *
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2026 2027 (no 2028 (no
Tier (Revenue) (current) change) change) 2029 2030 2031
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$0 to $1 million.................. $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Greater than $1 million up to $25 0.1827% 0.1827% 0.1827% 0.2056% 0.2280% 0.2280%
million..........................
Greater than $25 million up to $50 0.3909% 0.3909% 0.3909% 0.4397% 0.4877% 0.4877%
million..........................
Greater than $50 million up to 0.0779% 0.0779% 0.0779% 0.0876% 0.0972% 0.0972%
$100 million.....................
Greater than $100 million up to $5 0.0549% 0.0549% 0.0549% 0.0618% 0.0685% 0.0685%
billion..........................
Greater than $5 billion up to $25 0.0597% 0.0597% 0.0597% 0.0672% 0.0745% 0.0745%
billion..........................
Greater than $25 billion.......... 0.1286% 0.1286% 0.1286% 0.1447% 0.1604% 0.1604%
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* Section 1(c) of Schedule A to the FINRA By-Laws sets forth the GIA.
Trading Activity Fee *
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Security Type 2026 (current) 2027 (no change) 2028 (no change) 2029 2030 2031
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Covered Equity Security......... $0.000195 per $0.000195 per $0.000195 per $0.000232 per $0.000240 per $0.000249 per
share (up to share (up to share (up to share (up to share (up to share (up to
$9.79 max per $9.79 max per $9.79 max per $11.61 max per $12.05 max per $12.50 max per
trade). trade). trade). trade). trade). trade).
Options......................... $0.00329 per $0.00329 per $0.00329 per $0.00390 per $0.00404 per $0.00420 per
contract. contract. contract. contract. contract. contract.
Security Future................. $0.000135 per $0.000135 per $0.000135 per $0.00016 per $0.000166 per $0.000172 per
contract (with contract (with contract (with contract (with contract (with contract (with
$0.016 minimum $0.016 minimum $0.016 minimum $0.019 minimum $0.020 minimum $0.021 minimum
per round trip per round trip per round trip per round trip per round trip per round trip
transaction). transaction). transaction). transaction). transaction). transaction).
TRACE-Eligible Security (Other $0.00124 per bond $0.00124 per bond $0.00124 per bond $0.00147 per bond $0.00153 per bond $0.00158 per bond
than Asset-Backed Security) or (up to $1.24 max (up to $1.24 max (up to $1.24 max (up to $1.47 max (up to $1.53 max (up to $1.58 max
municipal security. per trade). per trade). per trade). per trade). per trade). per trade).
TRACE-Eligible Asset-Backed $0.00000124 times $0.00000124 times $0.00000124 times $0.00000147 times $0.00000153 times $0.00000158 times
Security. reported value reported value reported value reported value reported value reported value
(up to $1.24 max (up to $1.24 max (up to $1.24 max (up to $1.47 max (up to $1.53 max (up to $1.58 max
per trade). per trade). per trade). per trade). per trade). per trade).
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* Section 1(b) of Schedule A to the FINRA By-Laws sets forth the TAF. Many members identify that they pass through TAF to customers.
Personnel Assessment *
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2026 2027 (no 2028 (no
Tier (no. of reps) (current) change) change) 2029 2030 2031
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Reps 0-5................................... $245 $245 $245 $260 $270 $295
Reps 6-25.................................. 235 235 235 250 260 285
Reps 26 and greater........................ 225 225 225 240 250 275
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* Section 1(e) of Schedule A to the FINRA By-Laws sets forth the PA.
Branch Office System Processing Fee *
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2026 2027 (no 2028 (no 2029 (no
Fee (current) change) change) change) 2030 2031
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Branch Office System Processing Fee $75 $75 $75 $75 $105 $105
(initial and annual)..............
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* Section 4(a)(1) and (2) of Schedule A to the FINRA By-Laws sets forth the Branch Office System Processing Fee
(initial and annual).
Registration Fees *
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Fee 2026 (current) 2027 (no change) 2028 (no change) 2029 (no change) 2030 2031
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Initial/Transfer Registration $125.............. $125.............. $125.............. $125.............. $175.............. $175.
Form U4 filing.
Termination U5 filing........... $50 (plus $100 if $50 (plus $100 if $50 (plus $100 if $50 (plus $100 if $70 (plus $140 if $70 (plus $140 if
late filed). late filed). late filed). late filed). late filed). late filed).
Disclosure review............... $155.............. $155.............. $155.............. $155.............. $215.............. $215.
Electronic Fingerprinting....... $20............... $20............... $20............... $20............... $28............... $28.
Non-Electronic Fingerprinting... $30............... $30............... $30............... $30............... $42............... $42.
[[Page 60430]]
Fingerprinting Processed Through $30............... $30............... $30............... $30............... $42............... $42.
Another SRO.
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* Section 4(b)(1)-(6) of Schedule A to the FINRA By-Laws sets forth Registration Fees. FINRA also proposes conforming changes to Section 15(g) of
Schedule A to the FINRA By-Laws to align this proposed fee change with the same fees for Funding Portal members.
Renewal Late Fee *
[The Renewal Late Fee is 10 percent of a member's cumulative final renewal statement with the following minimums
and maximums]
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2026 2027 (no 2028 (no 2029 (no
Fee (current) change) change) change) 2030 2031
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The minimum late fee FINRA will 100 100 100 100 140 140
assess is.....................
The maximum late fee FINRA will 5,000 5,000 5,000 5,000 7,000 7,000
assess is.....................
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* Section 4(b)(8) of Schedule A to the FINRA By-Laws sets forth the Renewal Late Fee.
System Processing Fee *
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2026 2027 (no 2028 (no 2029 (no
(current) change) change) change) 2030 2031
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Number of securities regulators with which each registered person of a member is registered, excluding
registration as an investment adviser representative
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1-5.......................... $70 $70 $70 $70 $100 $100
6-20......................... 95 95 95 95 125 125
21-40........................ 110 110 110 110 140 140
41+.......................... 125 125 125 125 155 155
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* Section 4(b)(7) of Schedule A to the FINRA By-Laws sets forth the System Processing Fee.
Corporate Financing Private Placement Review Fee *
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Private placements (offerings 2026 2027 (no 2028 (no
>$25M) (current) change) change) 2029 2030 2031
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Flat Fee........................... $0 $0 $0 $300.................. $300.................. $300.
% of Offering...................... 0% 0% 0% 0.008%................ 0.008%................ 0.008%.
Offering Cap....................... $0 $0 $0 $500 million.......... $500 million.......... $500 million.
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* Section 7(c) of Schedule A to the FINRA By-Laws would set forth the Corporate Financing Private Placement Review Fee. This fee would apply only to
private placement offerings of greater than $25 million and would be capped at $40,300 (0.008% of $500,000,000 offering + $300 flat fee). FINRA
believes that this fee would be paid for by, or passed through to, issuers.
Corporate Financing Public Offering Review Fee Cap *
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2026 2027 (no 2028 (no
(current) change) change) 2029 2030 2031
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Non-WKSI **................................................ $225,000 $225,000 $225,000 $1,125,000 $1,125,000 $1,125,000
WKSI....................................................... 225,000 225,000 225,000 389,000 467,000 560,000
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* Section 7(a)-(b) of the Schedule A to the FINRA By-Laws sets forth the Corporate Financing Public Offering Review Fee. FINRA believes that this fee is
paid for by, or passed through to, issuers.
** WKSI stands for Well Known Seasoned Issuer. The Commission recently proposed to eliminate the WKSI definition (as it relates to all issuers other
than foreign private issuers) and establish two new categories of issuers: Eligible Listed Issuer and Seasoned Eligible Listed Issuer, both of which
would be defined in Rule 405. See Registered Offering Reform, Securities Exchange Act Release No. 105513 (May 19, 2026), 91 FR 31022 (May 26, 2026).
If these proposed changes are finalized, FINRA will consider if any changes to its fees are appropriate.
FINRA has filed the proposed rule change for immediate
effectiveness. The effective date and the implementation date will be
the date of filing. The proposed rule change would modify the
previously adopted fee implementation schedule as follows: from January
1, 2027 through December 31, 2028, fees would remain at 2026 rates;
implementation of fees scheduled to begin on January 1, 2027 would
instead commence on January 1, 2029; implementation of fees scheduled
to begin on January 1, 2028 would instead commence on January 1, 2030;
and implementation of fees scheduled to begin on January 1, 2029 would
instead commence on January 1, 2031.\18\
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\18\ FINRA notes that the proposed rule change would impact all
members, including members that are funding portals or have elected
to be treated as capital acquisition brokers (``CABs''), given that
the funding portal and CAB rule sets incorporate the impacted FINRA
rules by reference.
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[[Page 60431]]
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\19\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls. FINRA further believes that the proposed rule change is
consistent with the provisions of Section 15A(b)(6) of the Act,\20\
which requires, among other things, that FINRA rules are not designed
to permit unfair discrimination between customers, issuers, brokers or
dealers.
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\19\ 15 U.S.C. 78o-3(b)(5).
\20\ 15 U.S.C 78o-3(b)(6).
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The proposed rule change maintains the same equitable and not
unfairly discriminatory allocation of fees adopted in the 2024 Fee
Filing. The proposed rule change simply modifies the implementation
schedule of this equitable allocation of fees, resulting in savings to
members and users of FINRA services.\21\ As described below, the
savings are equitable and nondiscriminatory across members by size and
business model.
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\21\ Users can include retail and institutional customers,
counterparties, issuers or any other party that might directly or
indirectly share the burden of these fees, where members may share
the savings with them.
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
Economic Impact Assessment
FINRA has undertaken an economic impact assessment, as set forth
below, to analyze the regulatory need for the proposed rule change, its
potential economic impacts--including anticipated costs, benefits, and
distributional and competitive effects--relative to the current
baseline, and the alternatives FINRA considered in assessing how best
to meet its regulatory objectives.
Regulatory Need
Since the adoption of the 2024 Fee Filing, FINRA's financial
position has improved materially relative to the projections underlying
that filing. As a result of the 2025 strategic realignment discussed
above, FINRA's expenses have been reduced, while operating revenues are
expected to increase due to higher trading activities, higher member
revenues, and the impact of the 2024 Fee Filing.
As discussed above, based on an analysis of funding sources,
anticipated costs, and an assessment of current and projected market
activities, FINRA has determined that a modification to the
implementation schedule of the fee increases adopted in the 2024 Fee
Filing is appropriate at this time.
Economic Baseline
The baseline for this proposed rule change includes FINRA's current
and projected costs and revenues, the implementation schedule of fee
increases adopted in the 2024 Fee Filing as modified by SR-FINRA-2025-
007, and the direct and indirect allocation of those fees across
members, associated persons, third parties, and investors. The baseline
also encompasses the scope of activities conducted by FINRA to meet its
mission and FINRA's current financial position.\22\
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\22\ Any additional fee changes would take into account the
savings provided by this proposed rule change.
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Economic Impact
The proposed rule change is designed to provide savings to FINRA
members while preserving FINRA's ability to both maintain its reserve
balance within levels targeted under the Financial Guiding Principles
and continue to meet its regulatory mission. By delaying the
implementation of fee increases, the proposed rule change would reduce
the near-term fee burden on members without significantly altering the
long-term fee structure or the equitable allocation of fees established
in the 2024 Fee Filing.
FINRA's economic analysis below measures member savings, savings
rates and the distribution of savings rates across members during the
four-year transitional period (i.e., 2027-2030). As mentioned above,
total industry savings over this period are anticipated to be
approximately $718 million, representing approximately 9% of total
baseline revenue over the same period. On a per-member basis, the
median four-year savings amount is $5,199, reflecting the fact that
most FINRA members are small firms. The median four-year savings rate
is 7.2%, and the average four-year savings rate is 6.7%.
Savings vary across years. The highest savings rates are in 2028,
followed by 2029, 2027, and 2030, which has the lowest savings rate.
This reflects the structure of the two-year delay in the phase-in
schedule.
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Median savings rates by category
in each year (%)
-----------------------------------
2027 2028 2029 2030
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By Firm Size:
Large........................... 5.56 14.12 8.43 3.34
Medium.......................... 6.13 14.45 8.28 2.62
Small........................... 5.88 14.18 8.33 2.68
Micro........................... 2.07 8.99 6.01 3.08
By Firm Business Model:
Capital Markets and Investment 3.69 11.93 7.59 2.94
Banking........................
Clearing and Carrying........... 6.85 14.85 7.68 2.30
Diversified..................... 6.84 14.51 7.84 2.21
Retail.......................... 3.37 11.61 7.27 3.50
Trading and Execution........... 5.86 13.30 7.56 2.05
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To better understand the distribution of savings across members,
FINRA analyzed the dispersion of four-year savings rates around the
median for all members and for groupings defined by firm size and
business model.
[[Page 60432]]
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Number of Median % of members % of members
members in savings within one SD* within two SD*
category rate (%) of median of median
----------------------------------------------------------------------------------------------------------------
All............................................... 3,193 7.2 68.9 93.7
By Firm Size:
Large......................................... 153 8.2 72.5 96.1
Medium........................................ 202 8.0 77.3 94.1
Small......................................... 1,353 8.0 78.9 92.9
Micro......................................... 1,485 5.6 66.3 97.0
By Firm Business Model:
Capital Markets and Investment Banking........ 1,377 7.1 69.3 93.5
Clearing and Carrying......................... 138 8.2 75.4 94.2
Diversified................................... 159 8.0 72.4 93.8
Retail........................................ 1,092 6.8 69.8 93.1
Trading and Execution......................... 427 7.5 71.5 94.0
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*SD = Standard Deviation
As the table shows, approximately 69% of all members fall within
one standard deviation, plus or minus, of the median savings rate (the
central savings band). Approximately 94% of all members fall within two
standard deviations. The dispersion of savings rates is similar across
all firm size categories and business models.
Charts 1 through 10 provide additional detail on the dispersion of
four-year savings rates by firm size, business model, and overall.\23\
In each case, the proposed rule change limits the number of members
that fall beyond two standard deviations from the median in either
direction. In particular, the proposed rule change limits the number of
members that would be expected to experience a materially higher
savings rate than the median (as defined by two standard deviations).
For the entire population of members, FINRA estimates that 0.2% would
experience savings greater than two standard deviations from the median
savings.
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\23\ Charts 1 through 10 are contained in Exhibit 3, available
on FINRA's website. See File No. SR-FINRA-2026-020 (Form 19b-4,
Exhibit 3) (available on FINRA's website at <a href="http://www.finra.org">http://www.finra.org</a>.
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Taken together, these results indicate that the proposed rule
change provides savings that are equitably distributed across the
membership, maintaining a similar proportional allocation of fees
across firm sizes and business models established in the 2024 Fee
Filing.
FINRA does not anticipate that the proposed rule change will
materially impact competition among members or between members and
other providers of financial services. The proposed rule change is a
one-time delay, maintaining the same long-term allocation of fees
adopted in the 2024 Fee Filing. To the extent that the proposed rule
change reduces the near-term cost burden on members, it may modestly
benefit members relative to non-FINRA-regulated providers of financial
services; however, FINRA does not believe this effect is material, as
the fee delay does not alter the fundamental regulatory framework or
the relative cost structure of FINRA membership.
Alternatives Considered
In developing this proposal, FINRA considered alternatives to the
proposed two-year delay.
FINRA considered permanently reducing or eliminating certain of the
fee increases adopted in the 2024 Fee Filing rather than delaying them,
but did not pursue this approach because doing so could impair
sustainable funding if key assumptions underlying FINRA's financial
projections change materially.
FINRA also considered continuing to address revenue surpluses
solely by issuing additional rebates rather than modifying the fee
increase implementation schedule. FINRA determined that the proposed
schedule modification is appropriate, as it provides members with
greater certainty and predictability in their budgeting and planning
processes than retrospective rebates.\24\
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\24\ As noted, FINRA is prepared to further address revenue
surpluses in 2026.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \25\ and paragraph (f)(2) of Rule 19b-4
thereunder.\26\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act. If
the Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule should be approved
or disapproved.
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\25\ 15 U.S.C. 78s(b)(3)(A).
\26\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#2a585f464f07494547474f445e596a594f49044d455c"><span class="__cf_email__" data-cfemail="94e6e1f8f1b9f7fbf9f9f1fae0e7d4e7f1f7baf3fbe2">[email protected]</span></a>. Please include
File Number SR-FINRA-2026-020 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2026-020. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the filing will be available for inspection and copying at
the principal office of FINRA. Do not include personal identifiable
information in submissions; you should submit only information that you
wish to make available publicly. We may redact in part or withhold
entirely from
[[Page 60433]]
publication submitted material that is obscene or subject to copyright
protection. All submissions should refer to File Number SR-FINRA-2026-
020 and should be submitted on or before October 14, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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\27\ 17 CFR 200.30-3(a)(12).
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19393 Filed 9-22-26; 8:45 am]
BILLING CODE 8011-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.