WASHINGTON — Municipal Securities Rulemaking Board revenues totaled $32 million in fiscal year 2014, a 19% drop from the previous year, the board's annual report revealed.
The MSRB published its annual report Jan. 8, detailing both its current regulatory efforts as well as financial data for the fiscal year that ended Sept. 30, 2014. Despite collecting nearly $1 million from the first ever fees assessed on municipal advisors, lower bond volume and a $3.6 million dollar technology fee rebate the board returned to dealers in August resulted in an overall revenue decline.
Underwriting assessment fees dropped to just under $10 million from $11.8 million in fiscal 2013, the report showed. Transaction fees fell to about $12.9 million from $14 million the previous year. Rule violation revenue fell to $700,000 from almost $2.4 million, but data subscriber fees and other revenue actually increased by about $700,000.
The board's expenses rose 6.1% from the previous fiscal year, climbing to about $29.5 million from $27.8 million. Almost half of that spending, $14.1 million, went toward market information and transparency efforts, the report showed. Rulemaking development accounted for the next largest chunk, totaling $5.9 million.
The board finished fiscal 2014 with a bottom line of $2.5 million, well down from $11.5 million in fiscal 2013 and nearly $13.1 million in fiscal 2012. The board's financial performance is the responsibility of the board's finance committee.
The MSRB plans to review its funding structure "to determine if the current structure is fair and equitable for all regulated entities," the report said. Dealers have said the structure should be rebalanced to shift a greater burden on to the newly-registered MAs.
Although the MSRB was created by act of Congress in 1975, it is a self-funded regulator that receives no financial support from Congress. The board only writes rules. It shares enforcement fees with the Securities Exchange Commission and Financial Industry Regulatory Authority, which enforce the board's rules.
