For the third year in a row, FINRA ended deep in the red, reporting a net loss in income of
The self-regulatory organization has run into financial difficulties over the past year including an investigation by the
The regulator’s annual financial report for 2011 also pointed to “non-recurring costs related to our new data center facilities in
The largest share of these expenses went toward a
In addition, the company suffered significant losses from investments. Low interest rates hurt income, bringing in only
“Contributing to the net loss were the waning economic conditions that created a decrease in the gross income assessment due to the continued decline in industry revenues over the last three years,” FINRA said in its annual report.
The firm recently notified its members that fees across the board would be increasing. Rates for operating measures such as corporate financing and disclosures, which had remained static for member firms since 1970, were raised in order to cover increasing demand for oversight and “the nature and complexity” of that oversight as well as new software and technology, according to FINRA’s announcement to broker-dealers.
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