FINRA's proposed 25% increase in the fees that it collects from financial service firms may become a reality within the next few months, and it is important that all financial advisers stop and take note of the potential consequences.

Despite industry objections, FINRA has continued to argue that the fee hike is essential to its ability to effectively continue its regulatory mission in today's financial environment. Unfortunately, because this additional expense will significantly increase the cost of providing financial advice, these fee hikes might spell the end of widespread access to financial services for many of your middle-market clients.

The 25% increase would raise the fees that FINRA collects for registration and membership applications, including continuing membership applications. New membership application fees would increase from a minimum of about $3,500 to a minimum of $7,500 for the smallest financial advisory firms. FINRA would also increase the fees it charges to review advertising and sales literature developed by financial services firms to $125, up from $100, for the first 10 pages of materials.