FINRA Sends Rebates to Brokers after Record Profits
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
