FINRA Reports on the Use of Fines Imposed on Members Firms in 2023

FINRA reported that it collected $85.5 million in fines from member firms in 2023, but spent $97.8 million "in fines-eligible expenditures." FINRA said the difference was made up by its "reserves and excess operating results."

In the report, titled: "Use of 2023 Fine Monies," FINRA explained that the expenditures were made up of: "[c]apital initiatives and nonrecurring strategic expenditures," including (i) enhancing exam, investigation and disciplinary programs; (ii) enhancing registration, testing and dispute resolution systems; (iii) improving surveillance systems to monitor equity, option and fixed income market activity; and (iv) improving its digital platform and compliance filing systems. FINRA said these investments totaled $73.7 million. FINRA said the remainder was spent on education-related activities to improve compliance, including staff training and member outreach for a total of $24.1 million.

FINRA emphasized that it does not have a line item in its budget for revenue FINRA expects to generate from fines, nor does it have a minimum amount in fines that it must collect.