SEC Issues Fee Rate Advisory for Fiscal Year 2012

Jack Humphrey, Regulatory journalist
September 29, 2011 /

Starting on October 1, 2011, the fees that public companies and other issuers pay to register their securities with the Securities and Exchange Commission will be reduced to $114.60 per million dollars from their current rate of $116.10 per million dollars, according to the federal agency.

Meanwhile, the Congress is currently working on legislation to fund the SEC for the first several weeks of FY 2012, which begins on October 1. However, regardless of the outcome of this work, the fees paid under Section 31 of the Securities Exchange Act will remain at their current rate until 60 days after the enactment of a regular appropriation for the SEC.

The securities laws require the SEC to make annual adjustments to the rates for fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e) and 14(g) of the Securities Exchange Act of 1934. Under changes made by the Dodd-Frank Act, the annual rate changes for these fees must take effect on the first day of each fiscal year, which is October 1. On August 31, 2011, the SEC announced the new fee rate of $114.60 per million dollars that would take effect on Oct. 1, 2011.

Also, under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC will be required to publish a revised fee rate 30 days after the SEC’s regular appropriation for FY 2012 is enacted, and this new fee rate will become effective 60 days after the appropriation is enacted.

Until this time, the Section 31 fee rate will remain at the current rate of $19.20 per million. The Section 31 assessment on round turn transactions in security futures also will remain at $0.0042 per transaction.

All filings submitted to the SEC before 5:30 p.m. ET, and filings pursuant to Rule 462(b) (17 C.F.R. 230.462(b)) submitted to the SEC before 10:00 p.m. ET, on Sep. 30, 2011, will be subject to the current fee rate of $116.10 per million dollars.

Rule 462(b) filings submitted after 10:00 p.m. ET, and all other filings submitted after 5:30 p.m. ET, on September 30, 2011, shall be deemed filed as of the next business day, October 1, 2011, under Section 232.13 of Regulation S-T (17 C.F.R. 232.13), and be subject to the new fee rate of $114.60 per million dollars.

Filers with questions about the new Section 6(b), Section 13(e), or Section 14(g) fee rates should call the SEC at (202) 551-8900.


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