Washington, D.C., partner Mark Costley was quoted in Ignites in an article on the Financial Industry Regulatory Authority’s (FINRA) plans to hike the fees mutual fund firms pay the regulator for reviewing advertisements and sales literature to make sure they’re in compliance with the rules.

FINRA reviews public communications, including print, television and radio advertisements, as well as electronic communications via websites and social media to help ensure that firms’ communications are fair and balanced and comply with the rules. The organization proposed the rule in June, saying the change is necessary because of an increased volume of filings (19 percent from 2004 to 2011), which it expects to continue.

The SEC can suspend FINRA’s proposed rule within 60 days of its receipt on June 22. Mark said, however, that he thinks it “unlikely that the SEC actually would disallow the fee increase, given the nature of these fees, and the fact that they haven’t been increased in seven years.”

“Although the SEC clearly has authority to disallow the increase, there may be an expectation that FINRA and its members work these things out between themselves,” he said.

Mark added that FINRA’s arguments in defense of the proposed fee increase are “pretty cursory.”

“They don’t really put a detailed defense of this fee increase in there, and they might have served themselves better if they had,” he said.