Fee petition mechanics · Updated June 2026

Securities regulation attorney fee petition mechanics: FINRA broker-dealer cycle examination advisory, SEC investment adviser EXAM examination advisory, and FINRA Regulation Best Interest examination advisory

Securities regulation attorneys advising broker-dealer and investment adviser clients in FINRA and SEC regulatory examination proceedings — whose time records must satisfy the lodestar arithmetic required in any fee petition or sanctions motion arising from FINRA findings referred to SEC Division of Enforcement or EXAM deficiency findings referred to SEC Enforcement — generate three billing gaps driven by the arrival of FINRA broker-dealer cycle examination advisory calls on FINRA's examination notification timeline, SEC investment adviser EXAM examination advisory calls on EXAM's unannounced scheduling calendar, and FINRA Regulation Best Interest examination advisory calls on FINRA's regulatory notice publication calendar: FINRA broker-dealer cycle examination advisory calls on FINRA's examination notification timeline (6 BD clients × 5 advisory calls × 40 min × 55% untracked ≈ 11.0 hrs = $4,950–$8,250/year at $450–$750/hr), SEC investment adviser EXAM examination advisory calls on EXAM's unannounced scheduling calendar under IAA § 204 (4 IA clients × 4 advisory calls × 35 min × 55% ≈ 5.1 hrs = $2,295–$3,825/year at $450–$750/hr), and FINRA Regulation Best Interest examination advisory calls on FINRA's regulatory notice publication calendar (3 BD clients × 3 advisory calls × 30 min × 55% ≈ 2.5 hrs = $1,125–$1,875/year at $450–$750/hr). For a solo securities regulation practice spanning both FINRA broker-dealer and SEC investment adviser clients, the annual billing gap is $8,370–$13,950.

TL;DR

ClaimHour captures every FINRA broker-dealer cycle examination advisory call that arrives on FINRA's examination notification timeline, every SEC investment adviser EXAM advisory call that arrives on EXAM's unannounced scheduling calendar, and every FINRA Reg BI examination advisory call that arrives on FINRA's regulatory notice publication calendar — passively, no timer, no audio, no call contents. $29–$59/mo. No PMS required.

FINRA broker-dealer cycle examination advisory: calls on FINRA's examination notification timeline

FINRA conducts cycle examinations of its member broker-dealer firms under FINRA Rule 3110, which requires each member firm to maintain a supervisory system reasonably designed to achieve compliance with applicable securities laws and regulations. FINRA's examination program is risk-based: the examination schedule is determined by FINRA's internal risk-prioritization model, not by the BD firm's calendar, and the examination notification arrives 2–4 weeks before the examination start date when FINRA notifies the firm under FINRA Rule 8210. Because the notification arrives on FINRA's risk-based scheduling calendar — not on any date the attorney or the BD firm can predict — examination advisory calls are systematically underlogged across the full five-call examination advisory cycle.

Five FINRA broker-dealer cycle examination advisory call types that arrive on FINRA's examination notification timeline: (1) examination notification and initial information request advisory call — arrives 2–4 weeks before the examination start date when FINRA notifies the BD firm under FINRA Rule 8210 and simultaneously issues an initial information request specifying the document categories to be produced before the examination start date, requiring advisement on the scope of the information request, which supervisory systems documentation to prioritize, how to respond to FINRA's questionnaire regarding the firm's compliance program and supervisory procedures, and whether any documents are subject to attorney-client privilege or work-product protection that should be withheld from FINRA's initial request (38–50 min); (2) document request response advisory call — arrives during the examination period when FINRA examination staff issues supplemental requests for additional documentation, transaction records, correspondence, or customer account information, requiring advisement on the scope of the supplemental request, whether to assert any privilege over responsive materials, and how to frame the production to minimize adverse inference from the scope of the request (35–45 min); (3) on-site examination and examiner interview advisory call — arrives on the examination start date under FINRA Rule 8210 when FINRA examiners conduct on-site review of the BD firm's books and records and interview registered representatives and supervisory personnel, requiring advisement on the firm's rights during the on-site examination, how to prepare personnel for examiner interviews, which supervisory personnel should be the primary point of contact with the examination team, and what information should not be volunteered beyond the scope of FINRA's specific requests (38–48 min); (4) preliminary findings advisory call — arrives 2–4 weeks post-examination when the FINRA examination team informally identifies deficiencies and communicates them to senior firm management before the formal findings letter, requiring advisement on the significance of the deficiencies identified, which deficiencies to contest as factual errors, how to document the firm's corrective actions before the formal letter is issued, and whether any deficiency rises to the level of a potential disciplinary referral (35–45 min); (5) formal findings and disciplinary referral advisory call — arrives when FINRA issues the cycle examination findings letter documenting all identified deficiencies and any regulatory violations, requiring advisement on the formal response, whether to submit a written response contesting any findings under FINRA's examination findings response procedures, whether the findings letter discloses any matters under investigation that signal a potential disciplinary referral, and how to disclose the examination findings in Form BD under FINRA Rule 4530(a)(1)(B) (32–42 min). FINRA Rule 4530(a)(1)(B) requires member firms to disclose examination findings in Form BD; FINRA BrokerCheck publicly discloses those dates — enabling Welch v. Metropolitan Life, 480 F.3d 942, temporal correlation from public records. When FINRA findings are referred to SEC Division of Enforcement and the BD prevails in an Exchange Act § 15(b) administrative proceeding with Enforcement's position not substantially justified, EAJA 5 U.S.C. § 504 covers the full five-call FINRA examination advisory cycle as pre-enforcement investigation time includible in the lodestar under Pierce v. Underwood, 487 U.S. 552 (1988). At 55% untracked: 6 BD clients × 5 advisory calls × 40 min × 55% = 660 min / 60 ≈ 11.0 hours = $4,950–$8,250/year at $450–$750/hr.

SEC investment adviser EXAM examination advisory: calls on EXAM's unannounced scheduling calendar

The SEC Office of Examinations (EXAM) conducts examinations of registered investment advisers under IAA § 204, 15 U.S.C. § 80b-4, which grants the SEC the authority to examine the books and records of any investment adviser registered under the Investment Advisers Act of 1940. EXAM's examination schedule is unannounced and risk-based — the examination notification letter arrives without advance notice to the investment adviser or its counsel, triggering the pre-enforcement investigation phase. Because EXAM's scheduling calendar is entirely outside the adviser's and the attorney's control, EXAM examination advisory calls arrive without any recurring calendar signal that would prompt attorneys to anticipate and log them systematically.

Four SEC investment adviser EXAM examination advisory call types that arrive on EXAM's unannounced scheduling calendar: (1) initial EXAM information request advisory call — arrives when EXAM issues the examination notification letter and initial information request to the investment adviser, requiring advisement on the scope of the information request, which documents must be produced within the specified production period, how to respond to EXAM's questionnaire regarding the adviser's compliance program under IAA Rule 206(4)-7, 17 C.F.R. § 275.206(4)-7, whether any responsive documents are subject to attorney-client privilege or work-product protection, and how to frame the production to minimize adverse inference from scope (33–48 min); (2) on-site examination advisory call — arrives when EXAM examiners conduct on-site review of the adviser's books and records and interview compliance personnel and portfolio managers, requiring advisement on the adviser's rights during the on-site examination, how to prepare compliance personnel and portfolio managers for examiner interviews, which personnel should serve as primary examiner contact, and what information should not be volunteered beyond EXAM's specific requests (35–48 min); (3) preliminary deficiency discussions advisory call — arrives when EXAM staff raises concerns informally before the formal deficiency letter, communicating the examiners' preliminary views on regulatory deficiencies identified during the examination, requiring advisement on whether to contest the preliminary concerns with documentation of the adviser's compliance procedures, how to present corrective actions already taken, and whether any preliminary concern signals a potential referral to SEC Division of Enforcement (32–45 min); (4) deficiency letter response advisory call — arrives when EXAM issues the formal deficiency letter requiring a written response within 30 days, documenting the regulatory deficiencies identified during the examination under IAA Rule 206(4)-7 and other applicable provisions, requiring advisement on whether to contest any deficiency as a factual error, how to document corrective actions in the formal written response, and whether any deficiency creates exposure to an enforcement referral warranting preemptive engagement with SEC Division of Enforcement (30–42 min). When EXAM deficiency findings are referred to SEC Enforcement and the adviser prevails in an IAA § 203(e) proceeding with Enforcement's position not substantially justified, EAJA 5 U.S.C. § 504 covers all four EXAM advisory calls as pre-enforcement investigation time includible in the lodestar under Pierce v. Underwood, 487 U.S. 552. At 55% untracked: 4 IA clients × 4 advisory calls × 35 min × 55% = 308 min / 60 ≈ 5.1 hours = $2,295–$3,825/year at $450–$750/hr.

FINRA Regulation Best Interest examination advisory: calls on FINRA's regulatory notice publication calendar

FINRA examines broker-dealers for compliance with Regulation Best Interest under Exchange Act Rule 15l-1, 17 C.F.R. § 240.15l-1, which requires broker-dealers to act in the best interest of retail customers when making a recommendation of a securities transaction or investment strategy. FINRA publishes regulatory notices providing compliance guidance for Reg BI on its own publication calendar, and FINRA examination teams incorporate Reg BI compliance review into BD cycle examinations. Two distinct events on FINRA's calendar generate advisory calls that arrive without advance notice to counsel: FINRA regulatory notice publications (which arrive on the publication date and immediately trigger advisory calls to every BD client simultaneously) and FINRA examination notifications that include a Reg BI compliance component (which arrive when FINRA notifies the BD firm that the pending cycle examination will include a Reg BI scope component).

Three FINRA Regulation Best Interest examination advisory call types that arrive on FINRA's regulatory notice publication calendar: (1) FINRA Reg BI regulatory notice publication advisory call — arrives on the FINRA regulatory notice publication date when FINRA publishes new Reg BI compliance guidance under Exchange Act Rule 15l-1, triggering simultaneous same-day advisory calls to all three BD clients in the portfolio — the most concentrated single-day billing pattern in securities regulation practice — each call requiring advisement on the compliance implications of the new guidance for each client's specific product mix, customer base, and written supervisory procedures (28–40 min per client); (2) Reg BI examination scope advisory call — arrives when FINRA examination team notifies the BD that the pending cycle examination will include a Reg BI component, requiring advisement on the specific Reg BI compliance documentation that FINRA examiners will review, which customer account files and recommendation records to prioritize for pre-examination review, how to prepare compliance personnel to explain the firm's Form CRS and best-interest obligation documentation, and whether any prior recommendations identified in the firm's self-assessment create exposure to Reg BI deficiency findings (28–38 min); (3) Reg BI preliminary findings advisory call — arrives when the FINRA examination team identifies preliminary Reg BI deficiencies and communicates them informally before the formal findings letter, requiring advisement on whether the preliminary findings reflect genuine Reg BI violations under Exchange Act Rule 15l-1(a)(1) or overly broad application of the best-interest standard, how to document the firm's corrective procedures, and whether the preliminary Reg BI findings create exposure to an enforcement referral under Exchange Act § 15(b) (25–35 min). FINRA regulatory notice publication dates are publicly archived on FINRA's website — enabling Welch portfolio-wide temporal correlation from public records alone: all three BD clients' Reg BI notice advisory calls share the same publicly-verifiable publication date, creating the strongest single temporal correlation signature in securities regulation billing. At 55% untracked: 3 BD clients × 3 advisory calls × 30 min × 55% = 148.5 min / 60 ≈ 2.5 hours = $1,125–$1,875/year at $450–$750/hr.

How ClaimHour fits securities regulation practice

If you advise broker-dealer and investment adviser clients in FINRA and SEC regulatory examination proceedings — with FINRA broker-dealer cycle examination advisory calls arriving on FINRA's risk-based examination notification timeline without advance notice, SEC investment adviser EXAM advisory calls arriving on EXAM's unannounced scheduling calendar months before any enforcement referral, and FINRA Reg BI regulatory notice publication advisory calls arriving simultaneously for every BD client on the same public publication date — and your invoices consistently understate the five-call FINRA examination cycle that precedes any disciplinary referral, the four-call EXAM advisory cycle that precedes any enforcement referral, and the same-day Reg BI portfolio-wide advisory calls that generate the most concentrated single-day billing pattern in securities regulation practice — ClaimHour was built for that gap.

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