SEC to raise security registration fees charged to public companies by 7%

by Talk Business & Politics staff (staff2@talkbusiness.net) 17 views 

The U.S. Securities and Exchange Commission will raise the fees it charges to public companies to register their securities with the commission. On Oct. 1, the fees will rise 7% to $124.50 per $1 million, from $115.90 per $1 million, according to a news release.

The SEC is required to change the rates annually 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. Fees must be set to levels allowing the commission to generate projected amounts equal to the annual statutory target amounts. The projected amounts are determined using a method developed in collaboration with the Congressional Budget Office and the Office of Management and Budget. The statutory target amount for fiscal 2018, which starts Oct. 1, is $620 million.

Annual changes to the fees are required to take effect on the first day of each fiscal year. Fees for the repurchase of securities, for proxy solicitations and statements in corporate control transactions will rise to the new rate. The rate is also used to determine the fees payable with the Annual Notice of Securities Sold Pursuant to Rule 24f-2 in the Investment Company Act of 1940.

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