U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Fee Rate Advisory #8


Washington, DC, January 16, 2002 — The President today signed H.R. 1088, the "Investor and Capital Markets Fee Relief Act." This Act substantially reduces filing fees and securities transaction fees.

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 Securities Exchange Act of 1934 at $92 per million retroactively effective to October 1, 2001. The Act also eliminates the filing fee under Section 307(b) of the Trust Indenture Act of 1939. All Section 6(b), 13(e), 14(g), and 307(b) fees paid between October 1, 2001 and today will be recalculated by the Commission at the new rate. Within 60 days, the Commission will add the resulting savings to each filer's account for use towards future SEC filings. The Commission also will provide account statements to all affected filers. Upon receipt of an account statement, a filer may request in writing a refund of the amount in its account. Instructions for requesting a refund (including the appropriate address and fax number) will be included with the account statements. Please do not request a refund until after receipt of the statement.

To allow for the conversion of the Commission's electronic filing systems to the new fee rate, filers should continue to file at the old fee rates today. Starting tomorrow, filers should file at the new fee rate of $92 per million. The SEC's Office of Filings and Information Services is available for questions on filing fees at (202) 942-8900.

The Act also sets the securities transaction fee rate under Section 31 of the Securities Exchange Act of 1934 at $15 per $1,000,000 retroactively effective to December 28, 2001. In addition, as of December 28, 2001, Section 31 fees will apply to sales of options on securities indexes only if the underlying securities index is a narrow-based securities index. The self-regulatory organizations collect these fees pursuant to their rules. Additional information on the transition to the new Section 31 fee rate is available on the Internet web sites of The New York Stock Exchange and NASD Regulation at http://www.nyse.com/press/NT000682EA.html and http://www.nasdr.com/mem_alert122801.htm. The Office of Interpretations and Guidance in the SEC's Division of Market Regulation is also available for questions on Section 31 fees at (202) 942-0069.

The Commission is required under the Act 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). The Commission will announce the first annual adjustment no later than April 30, 2002, effective October 1, 2002 (or, if later, after the Commission's fiscal 2003 appropriation is enacted). In addition, the Commission may be required under the Act 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, 2002, effective April 1, 2002. 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.



Modified: 01/16/2002