2019 FINRA Renewal Program for BDs and RIAs

The 2019 FINRA Renewal Program for Broker-Dealers, Investment Adviser Firms, Investment Adviser Agents, Investment Adviser Representatives, and Branches is scheduled to begin on November 12, 2018.

Firms should note the following key dates in the renewal process:

  • November 12, 2018 – Preliminary statements are available via the E-Bill section of WebCRD. Preliminary statements are not mailed to firms.
  • December 17, 2018 – Full payment of Preliminary Statements is due.
  • January 2, 2019 – Final Statements are available via the E-Bill section of WebCRD.
  • January 21, 2019 – Full Payment of Final Statements is due.

A FINRA-registered firm that fails to remit full payment of its Preliminary Statement by December 17, 2018 may become ineligible to do business in the jurisdiction(s) in which the Firm is registered effective January 1, 2019. Firms that fail to timely remit payment will also be subject to a late fee of up to $5,000.00.

Preliminary Statements

FINRA assesses a fee of $45.00 for each individual who renews their BD registration with any regulator through WebCRD. FINRA also assesses the annual statutory disqualification fees for registered individuals.

Additionally, any IARD system fees – determined by the North American Securities Administrators Association (“NASAA”) for registered investment advisers (RIAs) and their representatives (RAs) who renew through IARD – will also be included on the Preliminary Statement.

Finally, FINRA assesses each firm a branch office annual registration fee based on the number of active FINRA branches. There is also a FINRA branch system processing renewal fee of $20.00 per branch. However, FINRA does waive one branch registration renewal and system processing renewal fee per firm.

Note:

FINRA does not assess the personnel assessment fees through the Renewal Program. FINRA-registered firms receive a separate invoice for these fees.

Additionally, some jurisdictions may require steps beyond payment of FINRA renewal fees to complete their renewal process. Firms should contact each jurisdiction directly for further information on state renewal requirements. A Regulator Directory, including contact information, is available on the NASAA website for the convenience of firms.

Final Statements

On January 2, 2019, FINRA makes all Final Statements available via the E-Bill section of WebCRD. These statements reflect the status of firm and individual registrations, exempt reporting, or notice filings as of December 31, 2018.

If a firm has more individuals, branch offices, or jurisdictions registered and/or notice filed at year end than it did when the Preliminary Statement was generated, the Final Statement will reflect the amount now owed by the firm.

If a firm has fewer individuals, branch offices, or jurisdictions registered and/or notice filed at year end than it did on the Preliminary Statement, FINRA will transfer the overpayment amount to the firm’s Flex-Funding Account on January 2, 2019.

When Final Statements are made available, firms should request the Firm Renewal Report through Web CRD, which will list all individuals renewed with SROs/exchanges and each jurisdiction. Individuals whose registrations are “approved” in any of these jurisdictions during November and December will be included in this roster. “Pending” and “deficient” registrations at year’s end are not included in the Renewal Program. Firms will also be able to request the Branches Renewal Report that lists all branches for which they have been assessed renewal fees. Versions of these reports will also be available for download.

Firms have until January 21, 2019 to report any discrepancies on the renewal reports. This date is also the deadline for receipt of final payment.  Specific information and instructions concerning the Final Statement and renewal reports will be available in a January 2019 Regulatory Notice.

Renewal Payment

Firms may pay electronically through E-Bill, send a wire transfer or mail a check; however, it is highly recommended that funds be remitted via E-Bill. Firms are encouraged to check their Renewal Statements to confirm FINRA has received payment and that the firm’s Preliminary Statement is paid in full.

For more information on the 2019 FINRA Renewal Program, please see FINRA Regulatory Notice 18-37. In addition to the FINRA notice, firms should review the renewal instructions, the IARD Renewal Program webpage (if applicable), and any information mailed to ensure continued eligibility to do business in 2019.

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