The proposed rule change amends Section 7 of Schedule A to the FINRA By-Laws to: (1) increase the rate from 0.01 percent to 0.015 percent for the fee for the filing of initial documents and amendments pursuant to the Corporate Financing Rule; (2) increase the maximum fee from $75,500 to $225,500 for such filings; and (3) increase the fee from $75,500 to $225,500 for an offering of securities on an automatically effective Form S-3 or F-3 registration statement filed by a well-known seasoned issuer with the SEC and offered pursuant to Rule 415 under the Securities Act of 1933, as amended.
FINRA's Corporate Financing Department is responsible for reviewing the underwriting terms and arrangements of proposed public offerings of securities for compliance with the requirements of Rule 5110. The fee charged to members for this review is set forth in Section 7. Prior to this change, the filing fee rate had remained static since it was adopted in 1970, while the cap had been adjusted periodically, most recently in 2004. In its filing with the SEC, FINRA states that the fee increases are necessary due to the changing nature and complexity of offerings under its review, which have required FINRA to deploy significant technology resources and process enhancements in order to accommodate new and changing needs.
FINRA filed the proposed rule change for immediate effectiveness, and has set an implementation date for filings and amendments made on or after July 2, 2012. The SEC will accept comments to the proposed rule change for 21 days after publication in the Federal Register.