On April 29, the Securities and Exchange Commission announced that for the government’s fiscal year 2011, registration fees under the Securities Act of 1933 will increase from the current rate of $71.30 per $1 million registered to $116.10 per $1 million, an increase of approximately 63%. This increased rate will also be applicable to the repurchase of securities in going-private transactions pursuant to Section 13(e) of the Securities Exchange Act of 1934, as well as to proxy solicitations and statements in corporate control transactions. The fee rate applicable to securities transactions on the exchanges and in certain over-the-counter markets will at the same time increase from $16.90 per $1 million to $19.20 per $1 million.
The SEC calculated the new rates under the Investor and Capital Markets Fee Relief Act, which sets dollar targets for statutory fee collections for each fiscal year. The SEC must set fee rates to levels that it projects will generate collections equal to such targets. For the 2011 fiscal year, the dollar targets increase under the Act.
The new filing fee rate will be effective on October 1, 2010, or five days after the date on which the SEC receives its regular appropriation from Congress, whichever is later, with the new fee rate applicable to securities transactions on the exchanges and over-the-counter markets becoming effective 30 days after the date on which the SEC receives its congressional appropriation. The SEC will publicly announce the actual effective dates of the new fees. In the past, congressional delays in passing appropriations bills have resulted in effective dates well beyond October 1.
Click here for the SEC’s order regarding the 2011 fee increases.
Click here for the SEC’s related filing fee advisory.