FINRA Sends Rebates to Brokers after Record Profits
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While commissions growth has been fairly stagnant over the last few years, Wall Street brokers’ efforts to cut costs have yielded record profits. And now they are getting a refund of sorts.
The Financial Industry Regulatory Authory (FINRA), the financial market’s self-regulatory agency, reported that firms reported $120 million in profits in 2014, according to a report released on Monday.
Brokerages shared a $20 million rebate for the second consecutive year as a result of operating revenue totaling $864 million, which FINRA collects from firms through fees for membership, trading and other services.
As first reported by Reuters, FINRA then refunded or via rebate, gave the brokers $20 million dollars as its way of sharing the profits.
But hold the phones and don’t go buying any corporate jets just yet. Each member firm’s take from the rebate was $1,200 plus a pro-rated share of their regulatory fees, according to FINRA’s website.
FINRA brought in $997 million in net revenues, besting the year prior by almost $100 million. Cost cutting helped FINRA, as it did the industry, with the regulator shaving almost $35 million from its costs.
Source: TradersMagazine – FINRA Sends Rebates to Brokers after Record Profits