SEC Announces 2018 Fee Rate Increase of 7.4%

The U.S. Securities and Exchange Commission (SEC) announced that in fiscal year 2018, the fees that public companies and other issuers pay to register their securities with the Commission will be increased 7.42% from $115.90 to $124.50 per $1 million of market capitalization.

SEC Requirement

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 (Securities Act) and Sections 13(e) and 14(g) of the Securities Exchange Act of 1934 (Exchange Act). The SEC must set rates for the fees paid to an amount projected to generate collections equal to annual statutory target amounts. The SEC’s projections are calculated using a methodology developed in consultation with the Congressional Budget Office and the Office of Management and Budget.

Effective Date

By law, the annual rate changes for fees paid under Section 6(b) of the Securities Act and Sections 13(e) and 14(g) of the Exchange Act must take effect on the first day of each fiscal year.

The 2018 rates announced today will be effective October 1, 2017. The Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rates applicable to proxy solicitations and statements in corporate control transactions, will increase from $115.90 per million dollars to $124.50 per million dollars.  The Section 6(b) rate is also the rate used to calculate the fees payable with the Annual Notice of Securities Sold Pursuant to Rule 24f-2 under the Investment Company Act of 1940.

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CCH ARM Editorial

CCH ARM Editorial

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