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January 18, 2002
TO: BOARD OF GOVERNORS No. 3-02
FEDERAL LEGISLATION MEMBERS No. 2-02
PUBLIC INFORMATION COMMITTEE No. 2-02
RE: PRESIDENT SIGNS SEC FEES REDUCTION LEGISLATION INTO LAW
On January 16, the “Investor and Capital Markets Fee Relief Act” (H.R. 1088) was signed
into law by the President. The Act substantially reduces filing and securities transaction fees
collected by the Securities and Exchange Commission (SEC).1
H.R. 1088 sets the securities transaction fee rate under Section 31 of the Securities
Exchange Act of 1934 at $15 per $1 million retroactively effective to December 28, 2001. The Act
sets the filing fee rates under Section 6(b) of the Securities Act of 1933 and Sections 13(e) and
14(g) of the Exchange Act at $92 per $1 million retroactively effective to October 1, 2001. H.R.
1088 also allows the SEC to raise the salaries of employees to levels comparable to those at other
federal financial regulatory agencies.
The Institute’s leadership on lowering excess fees and pay parity for SEC employees was
instrumental in the bill’s passage.
The Commission’s Fee Rate Advisory #8 summarizing the details of the Act and
compliance procedures is available at the SEC’s website
(http://www.sec.gov/news/headlines/feerate8.htm).
Matthew P. Fink
President
1 See Memorandum to Board of Governors No. 1-02, Federal Legislation Members No. 1-02, and Public Information
Committee No. 1-02.