WASHINGTON — The Municipal Securities Rulemaking Board announced Tuesday that it will rebate $3.6 million to broker-dealers because it has collected more money in technology fees than the board needs to maintain its systems.
The MSRB will provide rebates to currently active registered firms in amounts equal to the technology fees assessed on their trades during the six months that ended with June 2014, the board announced in a release.
Firms pay $1.00 per sales transaction, and that money goes into a technology renewal fund that the MSRB created in January 2011. That fund has reached a level three times higher than the board needs to update and maintain its hardware and software.
"The technology fund provides the resources required to maintain critical systems relied upon by the municipal securities industry," said MSRB executive director Lynnette Kelly. "However the fund has now reached its targeted level and future technology needs are not projected to exceed funding levels. So it is only fair to return the excess to the entities that paid those fees."
Firms eligible for the rebate will receive an email notification of the amount and whether they will receive a credit against future billings or have the option to receive an electronic payment, the MSRB said. They should receive the rebates before Sept. 30.
As a self-regulatory organization, the MSRB is funded through various fees it assesses on regulated members. The board said it plans to review its funding structure soon.
"The MSRB recognizes that changes to its funding structure may be appropriate to ensure that fees are fair and equitably assessed and distributed," the board said in a release. In the coming fiscal year, the MSRB plans to begin a comprehensive review of fees from dealer assessments, municipal advisors and other sources.
