Regulatory Alerts2024-05-01 | Information Notice 05/01/24Added · Updated
New Rate for Fees Paid Under Section 31 of the Exchange Act
FINRA announces that the Section 31 fee rate for specified securities transactions on exchanges and in over-the-counter markets increases from $8.00 to $27.80 per million dollars, effective May 22, 2024. This adjustment follows an announcement by the Securities and Exchange Commission (SEC) regarding the annual rate update. The assessment on security futures transactions remains unchanged at $0.0042 per round turn transaction. FINRA member firms are responsible for paying these fees based on the trade date of applicable covered sales.
New Rate for Fees Paid Under Section 31 of the Exchange Act Effective Date: May 22, 2024 Summary Effective May 22, 2024, the Section 31 fee rate applicable to specified securities transactions on the exchanges and in the over-the-counter markets will increase from its current rate of $8.00 per million dollars in transactions to a new rate of $27.80 per million dollars in transactions. Finance-related questions should be directed to: X Amanda Rath, Manager, Finance, at (240) 386-6637 or amanda.rath@finra.org. Legal and interpretive questions should be directed to: X Robert McNamee, Vice President & Associate General Counsel (OGC), at (202) 728-8012 or robert.mcnamee@finra.org; or X Faisal Sheikh, Assistant General Counsel, OGC, at (202) 728-8379 or faisal.sheikh@finra.org. Discussion On April 17, 2024, the Securities and Exchange Commission (SEC) announced in Fee Rate Advisory #2 for Fiscal Year 2024 that, effective May 22, 2024, the Section 31 fee rate applicable to specified securities transactions on the exchanges and in the over-the-counter markets will increase from its current rate of $8.00 per million dollars in transactions to a new rate of $27.80 per million dollars in transactions. Until that date, the current rate of $8.00 per million dollars will remain in effect.1 The assessment on security futures transactions will remain unchanged at $0.0042 for each round turn transaction. Section 31 of the Exchange Act requires the SEC to annually adjust the fee rates applicable under Section 31 and, in some circumstances, to make a mid-year adjustment, after consultation with the Congressional Budget Office and the Office of Management and Budget. 1 Information Notice Suggested Routing X Compliance X Legal X Trading Key Topic(s) X Regulatory Transaction Fee X Section 31 Fees Referenced Rules & Notices X Section 3 of Schedule A to the FINRA By-Laws X Section 31 of the Securities Exchange Act of 1934 May 1, 2024
The SEC will issue further notices as appropriate, and the notices will be posted on the SEC’s website at www.sec.gov. FINRA obtains its Section 31 fees from member firms, in accordance with Section 3 of Schedule A to the By-Laws. Section 3 specifies that the amount assessed on firms will be determined periodically in accordance with Section 31 of the Exchange Act. 2 Information Notice May 1, 2024
- For purposes of FINRA calculations, the “charge date” is the trade date, not the settlement date. See 17 CFR 240.31(a)(3). Thus, the new rate will apply to applicable covered sales in the overthe-counter market with a trade date of May 22, 2024, orlater. Endnotes Information Notice 3 May 1, 2024 ©2024. FINRA. All rights reserved. Regulatory Notices attempt to present information to readers in a format that is easily understandable. However, please be aware that, in case of any misunderstanding, the rule language prevails.