Regulatory Fees and Expenses of Broker-Dealers

This paper examines long-term trends in regulatory fees and expenses paid by SEC-registered broker-dealers using FOCUS data from 2010 through 2024. It highlights how these costs vary widely by firm size, business model, and number of registered representatives, with smaller firms often carrying a higher burden relative to assets. The analysis also shows that while total regulatory fees are concentrated among the largest firms, fees as a share of assets have generally declined over time. Together, the findings provide a clearer picture of how regulatory costs are distributed across the broker-dealer landscape.