The state is looking to more than double the amount of money it makes off the enforcement and regulation of its securities and investment industries, by increasing some of the fees as much as five-fold.
New Jersey’s Bureau of Securities, an arm of the Division of Consumer Affairs run out of the Attorney General’s Office, is tasked with overseeing the investment market including broker-dealers, advisers and mutual funds.
The agency is expected to reel in almost $14 million from regulations and fees by the end of the 2019 fiscal year, which ends in June.
Come the 2020 budget year, which starts in July, state regulators are eyeing even more revenue ($17 million to over $30 million) under the budget Gov. Phil Murphy unveiled last month. In the 2018 fiscal year, the last enacted under then-Gov. Chris Christie, the bureau took in over $20 million from a variety of fees.
Under the proposed budget, agent registration fees would go up from $60 to $125, broker-dealer registration fees would go from $300 to $450, investment adviser registration fees would go from $200 to $375 and investment adviser representative fees would go up from $50 to $130.
The budget also calls for increasing the mutual fund registration fee from $500 to $2,000, the unit investment trust registration fee from $200 to $1,000, the securities registration fee from $1,000 to $3,000 and the Regulation D notice fee from $250 to $500.
“They haven’t been raised in a number of years and they’re just being brought in line with neighboring states,” Attorney General Gurbir Grewal said Wednesday following an Assembly Budget hearing on his department’s proposed spending plan.
“In some cases, it’s been 10 to 20 years without an increase,” he added.
A similar argument had been made by the Murphy Administration for a proposal to drastically increase a myriad of fees related to firearms, including ID cards and licenses to possess or sell guns.