The states’ survey was prompted by enforcement actions in 2010 and 2011 by Connecticut regulators and Finra against five B-Ds for excessive postage and handling charges—fees that were simply added onto normal commission charges.
In 2006, Finra fined a firm over ACAT charges of as much as $295, compared to its clearing-firm cost of as little as $35.
Seidt declined to specify what fees in particular the working group will be examining, but said the review “will be much broader” than the service fees highlighted in the NASAA report.
She said state regulators hope to have some recommendations on improved disclosure from the working group within a year.
A Finra spokesperson did not respond by press time.