SEC: Fee Rate Advisory #11 For Fiscal Year 2003

President Bush has signed H. J. Res. 2, the omnibus appropriations bill that includes funding for the Securities and Exchange Commission for the remainder of fiscal year 2003. Effective Feb. 25, 2003, 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 decrease to $80.90 per million. 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.

All filings submitted to the SEC before 5:30 p.m. EST, and filings pursuant to Rule 462(b) (17 C.F.R. 230.462(b)) submitted to the SEC before 10:00 p.m. EST, on Feb. 24, 2003, will be subject to the current fee rate of $92 per million. Rule 462(b) filings submitted after 10:00 p.m. EST, and all other filings submitted after 5:30 p.m. EST, on Feb. 24, 2003, shall be deemed filed as of the next business day, Feb. 25, 2003, under Section 232.13 of Regulation S-T (17 C.F.R. 232.13), and subject to the new fee rate of $80.90 per million.

Questions about the new Section 6(b), Section 13(e), or Section 14(g) fee rates should be directed to the Filer Support Unit in the Office of Filings and Information Services at (202) 942-8900.

In addition, effective March 22, 2003, the Section 31 fee rate applicable to securities transactions on the exchanges and NASDAQ will decrease to $25.20 per million. The Section 31 assessment on security futures transactions will remain unchanged at $0.009 per round turn transaction.

Self-regulatory organizations collect Section 31 fees pursuant to their rules. Additional information on the transition to the new Section 31 fee rate will be available before the new rate becomes effective on the Web sites of The New York Stock Exchange, Inc. and NASD Inc. at http://www.nyse.com and http://www.nasd.com. The Office of Interpretation and Guidance in the SEC's Division of Market Regulation is also available for questions on Section 31 fees at (202) 942-0069, or by e-mail at marketreg@sec.gov.

The Commission is required to adjust the filing and securities transaction fee rates on an annual basis, after consultation with the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB). A copy of the Commission's April 29, 2002, order regarding the fee rate adjustments for fiscal year 2003, including the calculation methodologies, is available at http://www.sec.gov/rules/other/33-8095.htm.

The adjusted fee rates will not affect the amount of funding available to the Commission.

The Commission will announce the annual adjustment for fiscal year 2004 no later than April 30, 2003, effective Oct. 1, 2003 (or, if later, after the Commission's fiscal year 2004 appropriation is enacted). In addition, the Commission may be required to make a "mid-year" adjustment to the Section 31 fee rate, after consultation with CBO and OMB, which would be announced no later than March 1, 2003, effective April 1, 2003. The Commission will issue further notices as appropriate. This information will be posted on the SEC's Internet Web site at http://www.sec.gov.