ARTICLE
24 February 2021

FINRA Reports GASB Accounting Support Fee For 2021

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Hogan Lovells Cadwalader

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FINRA reported that it will collect a total of $10,707,300 from member firms that report trades to the MSRB.
United States Finance and Banking

FINRA reported that it will collect a total of $10,707,300 from member firms that report trades to the MSRB. The fee, to be collected in quarterly installments starting in April 2021, funds the Governmental Accounting Standards Board ("GASB") pursuant to FINRA By-Laws, Schedule A, Section 14 ("Accounting Support Fee for Governmental Accounting Standards Board").

The GASB Accounting Support Fee is based on a member's portion of the total par value of municipal securities transactions reported to the MSRB by all firms. FINRA estimated that the GASB Accounting Support Fee for 2021 will be between $0.0029 and $0.0037 per $1,000 par value. FINRA reminded firms that should they choose to pass along the fee to customers, the firms must properly disclose the fees and state in the disclosure that the fee is an estimate.

Primary Sources

  1. FINRA Regulatory Notice 21-06: 2021 GASB Accounting Support Fee to Fund the Governmental Accounting Standards Board

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