Communications Submitted for Review by FINRA Face Increased Review Fees

The Financial Industry Regulatory Authority, Inc. (“FINRA”) has announced that it is filing with the Securities and Exchange Commission (“SEC” or “Commission”), a  proposed rule change to amend Section 13 of Schedule A to the FINRA By-Laws (“Section 13”)  which govern the review charges for communications filed with or submitted to FINRA’s Advertising Regulation Department (the “Department”).  The intended purpose of the the increase fees, beyond increasing revenue,  is to account for upcoming technological changes that will allow websites to be filed with FINRA in native format for review.

The proposed rule is implementing a new review charge all communications, whether in printed, video or other form, filed with or submitted to FINRA.  The only exception will be for items that are filed or submitted in response to a written request from FINRA’s Advertising Regulation Department (“the Department”) issued pursuant to the spot check procedures set forth in FINRA rules.  The new fees are as follows: (1) for printed or website material reviewed, $125.00, plus $10.00 for each printed page or webpage reviewed in excess of 10 pages; and (2) for video or audio media, $125.00, plus $10.00 per minute for each minute of tape reviewed in excess of 10 minutes.

Where a FINRA member firm requests expedited review of any communications material that is submitted to the Department, there shall be a expedited review charge of $600.00 per item, plus $50.00 for each printed page or webpage reviewed in excess of 10 pages. Expedited review shall be completed by the Department within three business days, not including the date the item is received by the Department, unless a shorter or longer period is agreed to by the Department. Additionally, it should be noted that the  Department may, in its sole discretion, refuse requests for expedited review.

Complete information on the proposed rule change can be found here.