Penalty-Reduction Policy for Small Entities

The Securities and Exchange Commission is issuing a statement of its penalty-reduction policy for small entities as required by the Small Business Regulatory Enforcement Fairness Act, Pub. L. No. 104- 121, 110 Stat. 857 (1996). The Commission also requests comments on the policy. After the comment period has closed and the Commission has gained experience in applying the policy, the Commission intends to re- evaluate the policy in light of its experience and the comments of interested persons.