Information Notice - 4/24/25
Executive Summary
This FINRA Information Notice announces the SEC's reduction of the Section 31 fee rate to $0.00 per million dollars in specified securities transactions, effective May 14, 2025, following the SEC's Fee Rate Advisory for Fiscal Year 2025. It matters because it eliminates these transaction fees for FINRA member firms for the remainder of FY 2025 (and potentially beyond until FY 2026 appropriations), reducing costs and simplifying billing processes amid the SEC's over-collection of its appropriation target.[https://www.finra.org/rules-guidance/notices/information-notice-20250424] #
What Changed
- - The Section 31 fee rate drops from $27.80 per million dollars to $0.00 per million dollars for covered securities transactions on exchanges and over-the-counter markets, applicable to trade dates (charge dates) of May 14, 2025, or later.[https://ww
- The assessment on security futures transactions remains unchanged at $0.0042 per round turn transaction.[https://www.finra.org/rules-guidance/notices/information-notice-20250424]
- FINRA will assess fees on member firms per Section 3 of Schedule A to the By-Laws, aligned with SEC adjustments made in consultation with the Congressional Budget Office and Office of Management and Budget.[https://www.finra.org/rules-guidance/notice
Suggested Considerations
- Update internal billing, invoicing, and financial reporting systems to reflect the $0.00 rate starting May 14, 2025, using trade date as the charge date per 17 CFR 240.31(a)(3).[https://www.finra.org/rules-guidance/notices/information-notice-20250424]
- Review and adjust any automated fee calculations or client pass-through mechanisms for transactions on or after the effective date.
- Contact FINRA's Amanda Rath for finance questions ((240) 386-6637) or SEC's Robert McNamee/Faisal Sheikh for legal/interpretive issues; monitor SEC website for updates.[https://www.finra.org/rules-guidance/notices/information-notice-20250424]
- Test systems for security futures (unchanged rate) and confirm no inadvertent charging of Section 31 fees post-effective date.
Key Dates
Compliance Impact
Urgency: Low - This is a beneficial change eliminating fees due to SEC over-collection, with no new requirements or penalties; firms already past the May 14, 2025, effective date (as of January 2026) face minimal risk if systems were updated timely. It matters for cost savings, accurate financials, and avoiding erroneous collections, but non-compliance (e.g., continued billing) could lead to refun
Who is Affected
References
AI-generated analysis. May contain errors or omissions — verify with the original FINRA source before acting. Full disclaimer.
Summary
Information Notice - 4/24/25