The Financial Industry Regulatory Authority (FINRA) reported $218.8 million in net income for 2021. That is an increase of $199 million from the prior year. FINRA credits that to increases in trading fees, investment gains, and fines.
The breakdown of the results consists of operating income of $112 million, investment gains of $105.3 million, and other income of $1.5 million, according to FINRA's annual report. FINRA's operating revenue saw a 17.7 increase due to a 15 percent jump in trading activity fees. FINRA also attained an 84 percent increase in corporate financing fees due to record-breaking initial and secondary public offerings.
FINRA has collected $103 million in fines, an 80.7 percent increase from 2020. The improvement largely results from FINRA's order against Robinhood Financial, requiring the firm to pay $57 million in fines.
FINRA also reported an increase in expenses last year. The regulator saw a rise from 1.1 billion to 1.3 billion. FINRA shared that the majority of its expenses are employee-related costs. FINRA CEO Robert Cook expects the operating revenue and investment returns to decline this year. In fact, current projections suggest that expenditures will continue to outpace revenues for the next few years.
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