Adjustments to Civil Monetary Penalty Amounts, 5367-5373 [2017-00421]
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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations
fuselage stringer STR37 between fuselage
station (STA) STA6805 and STA7305, in
accordance with the Accomplishment
Instructions of Fokker Service Bulletin
SBF100–53–130, dated December 1, 2015.
(1) For airplanes having 45,000 or more
total flight cycles as of the effective date of
this AD, since the date of issuance of the
original airworthiness certificate or the date
of issuance of the original export certificate
of airworthiness: Do the high and low
frequency eddy current inspections within
750 flight cycles after the effective date of
this AD.
(2) For airplanes having 40,000 or more
total flight cycles, but less than 45,000 total
flight cycles as of the effective date of this
AD, since the date of issuance of the original
airworthiness certificate or the date of
issuance of the original export certificate of
airworthiness: Do the high and low frequency
eddy current inspections within 1,500 flight
cycles after the effective date of this AD.
mstockstill on DSK3G9T082PROD with RULES
(h) Corrective Action
If any crack is found during any inspection
required by paragraph (g) of this AD: Before
further flight, repair using a method
approved by the Manager, International
Branch, ANM 116, Transport Airplane
Directorate, FAA; or the European Aviation
Safety Agency (EASA); or Fokker B.V.
Service’s EASA Design Organization
Approval (DOA).
(i) Other FAA AD Provisions
The following provisions also apply to this
AD:
(1) Alternative Methods of Compliance
(AMOCs): The Manager, International
Branch, ANM–116, Transport Airplane
Directorate, FAA, has the authority to
approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19.
In accordance with 14 CFR 39.19, send your
request to your principal inspector or local
Flight Standards District Office, as
appropriate. If sending information directly
to the International Branch, send it to ATTN:
Tom Rodriguez, Aerospace Engineer,
International Branch, ANM–116, Transport
Airplane Directorate, FAA, 1601 Lind
Avenue SW., Renton, WA 98057–3356;
telephone 425–227–1137; fax 425–227–1149.
Information may be emailed to: 9–ANM–116–
AMOC–REQUESTS@faa.gov. Before using
any approved AMOC, notify your appropriate
principal inspector, or lacking a principal
inspector, the manager of the local flight
standards district office/certificate holding
district office.
(2) Contacting the Manufacturer: For any
requirement in this AD to obtain corrective
actions from a manufacturer, the action must
be accomplished using a method approved
by the Manager, International Branch, ANM–
116, Transport Airplane Directorate, FAA; or
EASA; or Fokker Services B.V.’s EASA DOA.
If approved by the DOA, the approval must
include the DOA-authorized signature.
(j) Related Information
Refer to Mandatory Continuing
Airworthiness Information (MCAI) EASA AD
2016–0029R1, dated November 17, 2016, for
related information. This MCAI may be
found in the AD docket on the Internet at
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16:39 Jan 17, 2017
Jkt 241001
https://www.regulations.gov by searching for
and locating Docket No. FAA–2016–9058.
(k) Material Incorporated by Reference
(1) The Director of the Federal Register
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(IBR) of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR
part 51.
(2) You must use this service information
as applicable to do the actions required by
this AD, unless this AD specifies otherwise.
(i) Fokker Service Bulletin SBF100–53–
130, dated December 1, 2015.
(ii) Reserved.
(3) For service information identified in
this AD, contact Fokker Services B.V.,
Technical Services Dept., P.O. Box 1357,
2130 EL Hoofddorp, the Netherlands;
telephone: +31 (0)88–6280–350; fax: +31
(0)88–6280–111; email: technicalservices@
fokker.com; Internet https://
www.myfokkerfleet.com.
(4) You may view this service information
at the FAA, Transport Airplane Directorate,
1601 Lind Avenue SW., Renton, WA. For
information on the availability of this
material at the FAA, call 425–227–1221.
(5) You may view this service information
that is incorporated by reference at the
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the availability of this material at NARA, call
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www.archives.gov/federal-register/cfr/ibrlocations.html.
Issued in Renton, Washington, on
December 27, 2016.
Jeffrey E. Duven,
Manager, Transport Airplane Directorate,
Aircraft Certification Service.
[FR Doc. 2017–00410 Filed 1–17–17; 8:45 am]
BILLING CODE 4910–13–P
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 201
[Release Nos. 33–10276; 34–79749; IA–
4599; IC–32414]
Adjustments to Civil Monetary Penalty
Amounts
Securities and Exchange
Commission.
ACTION: Final rule.
AGENCY:
The Securities and Exchange
Commission (the ‘‘Commission’’) is
adopting a final rule to implement the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the ‘‘2015 Act’’), which amended
the Federal Civil Penalties Inflation
Adjustment Act of 1990 (the ‘‘Inflation
Adjustment Act’’), as previously
amended by the Debt Collection
Improvement Act of 1996 (the ‘‘DCIA’’).
The 2015 Act requires all agencies to
annually adjust for inflation the civil
SUMMARY:
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5367
monetary penalties that can be imposed
under the statutes administered by the
agency. Pursuant to this requirement,
this final rule performs the first annual
adjustment for inflation of the
maximum amount of civil monetary
penalties administered by the
Commission under the Securities Act of
1933, the Securities Exchange Act of
1934, the Investment Company Act of
1940, the Investment Advisers Act of
1940, and certain penalties under the
Sarbanes-Oxley Act of 2002. This
adjustment will apply to all penalties
imposed after the effective date of this
final rule for violations after November
2, 2015. For violations that occurred on
or before November 2, 2015, the
Commission is reinstating the penalty
amounts in the Commission’s prior
penalty adjustments performed under
the DCIA.
DATES: Effective Date: January 18, 2017.
FOR FURTHER INFORMATION CONTACT:
James A. Cappoli, Assistant General
Counsel, Office of the General Counsel,
at (202) 551–7923, or Stephen M. Ng,
Senior Counsel, Office of the General
Counsel, at (202) 551–7957.
SUPPLEMENTARY INFORMATION:
I. Background
This final rule implements the 2015
Act,1 which amended the Inflation
Adjustment Act.2 The Inflation
Adjustment Act previously had been
amended by the DCIA 3 to require that
each federal agency adopt regulations at
least once every four years that adjust
for inflation the civil monetary penalties
(‘‘CMPs’’) that could be imposed under
the statutes administered by the agency.
Pursuant to the requirements of the
DCIA, the Commission previously
adopted regulations in 1996, 2001, 2005,
2009, and 2013 to adjust the maximum
amount of the CMPs that could be
imposed under the statutes the
Commission administers.4
1 Public Law 114–74 Sec. 701, 129 Stat. 599–601
(Nov. 2, 2015), codified at 28 U.S.C. 2461 note.
2 Public Law 101–410, 104 Stat. 890–892 (1990),
codified at 28 U.S.C. 2461 note.
3 Public Law 104–134, Title III, § 31001(s)(1), 110
Stat. 1321–373 (1996), codified at 28 U.S.C. 2461
note.
4 See Release Nos. 33–7361, 34–37912, IA–1596,
IC–22310, dated November 1, 1996 (effective
December 9, 1996), previously found at 17 CFR
201.1001 and Table I to Subpart E of Part 201;
Release Nos. 33–7946, 34–43897, IA–1921, IC–
24846, dated January 31, 2001 (effective February
2, 2001), previously found at 17 CFR 201.1002 and
Table II to Subpart E of Part 201; Release Nos. 33–
8530, 34–51136, IA–2348, IC–26748, dated
February 9, 2005 (effective February 14, 2005),
previously found at 17 CFR 201.1003 and Table III
to Subpart E of Part 201; Release Nos. 33–9009, 34–
59449, IA–2845, IC–28635, dated February 25, 2009
(effective March 3, 2009), previously found at 17
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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations
The 2015 Act replaces the inflation
adjustment mechanism prescribed in
the DCIA with a new mechanism for
calculating the inflation-adjusted
amount of CMPs. Each agency was first
required to use this new mechanism to
adjust the maximum amount of its
CMPs 5 in an initial ‘‘catch-up’’
adjustment.6 Pursuant to this
requirement, the Commission issued an
interim final rule adjusting its CMPs on
June 27, 2016 (the ‘‘June 2016 interim
final rule’’).7 After performing the catchup adjustment, each agency must now
perform annual adjustments for
inflation, and publish these adjustments
in the Federal Register by January 15 of
each calendar year.8
A CMP is defined in relevant part as
any penalty, fine, or other sanction that:
(1) Is for a specific amount, or has a
maximum amount, as provided by
federal law; and (2) is assessed or
enforced by an agency in an
administrative proceeding or by a
federal court pursuant to federal law.9
This definition applies to the monetary
penalty provisions contained in four
statutes administered by the
Commission: The Securities Act of
1933; the Securities Exchange Act of
1934 (the ‘‘Exchange Act’’); the
Investment Company Act of 1940; and
the Investment Advisers Act of 1940. In
addition, the Sarbanes-Oxley Act of
2002 provides the Public Company
Accounting Oversight Board (the
‘‘PCAOB’’) authority to levy civil
monetary penalties in its disciplinary
proceedings pursuant to 15 U.S.C.
7215(c)(4)(D).10 The definition of a CMP
in the Inflation Adjustment Act
encompasses such civil monetary
penalties.11
II. Adjusting the Commission’s Penalty
Amounts for Inflation
This final rule implements the first of
the required annual adjustments under
the 2015 Act for all penalties under the
Securities Act, the Exchange Act, the
Investment Company Act, and the
Investment Advisers Act, and certain
penalties under the Sarbanes-Oxley Act.
As the baseline in calculating these
new penalty amounts, the Commission
uses the penalty amounts in the
Commission’s June 2016 interim final
rule. The penalty amounts in that
interim final rule used the new inflation
adjustment mechanism in the 2015 Act
as part of the ‘‘catch-up adjustment’’
required by that Act. The Commission
affirms that the amounts in the June
2016 interim final rule were correct and
U.S. code citation
Civil monetary penalty description
15 U.S.C. 77h–1(g) (Securities Act
Sec. 8A(g)).
For natural person ....................................................
For any other person ................................................
For any other person/fraud .......................................
For natural person/fraud/substantial losses or risk
of losses to others or gains to self.
For any other person/fraud/substantial losses or
risk of losses to others or gain to self.
For natural person ....................................................
For any other person ................................................
For natural person/fraud ...........................................
For any other person/fraud .......................................
mstockstill on DSK3G9T082PROD with RULES
15 U.S.C. 77t(d) (Securities Act Sec.
20(d)).
CFR 201.1004 and Table IV to Subpart E of Part 201;
and Release Nos. 33–9387, 34–68994, IA–3557, IC–
30408, dated February 27, 2013 (effective March 5,
2013), previously found at 17 CFR 201.1005 and
Table V to Subpart E of Part 201.
5 The 2015 Act also applies to minimum penalty
amounts and penalty ranges. See 28 U.S.C. 2461
note Sec. 5(a). All of the statutes administered by
the Commission, however, only include maximum
penalty amounts. Thus, in this final rule, we only
refer to the effect of the 2015 Act on maximum
penalty amounts.
6 28 U.S.C. 2461 note Sec. 4(b)(1); Office of
Management and Budget, Implementation of the
Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (February 24, 2016)
(‘‘2016 OMB Guidance’’) at 1, available at https://
www.whitehouse.gov/sites/default/files/omb/
memoranda/2016/m-16-06.pdf.
7 Release Nos. 33–10104; 34–78156; IA–4437; IC–
32162 (June 27, 2016).
8 28 U.S.C. 2461 note Sec. 4; 2016 OMB Guidance
at 4.
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16:39 Jan 17, 2017
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9 28
U.S.C. 2461 note Sec. 3(2).
U.S.C. 7215(c)(4)(D).
11 The Commission may by order affirm, modify,
remand, or set aside sanctions, including civil
monetary penalties, imposed by the PCAOB. See
Section 107(c) of the Sarbanes-Oxley Act of 2002,
15 U.S.C. 7217. The Commission may enforce such
orders in federal district court pursuant to Section
21(e) of the Securities Exchange Act of 1934. As a
result, penalties assessed by the PCAOB in its
disciplinary proceedings are penalties ‘‘enforced’’
by the Commission for purposes of the Inflation
Adjustment Act. See Adjustments to Civil Monetary
Penalty Amounts, Release No. 33–8530 (Feb. 4,
2005) [70 FR 7606 (Feb. 14, 2005)].
12 The 2015 Act provided that agencies could seek
approval from OMB to reduce the amount of the
catch-up adjustment required by the 2015 Act (a
‘‘reduced catch-up determination’’) if: (1) The
otherwise required increase of the maximum
amount of the CMPs administered by the agency
would have a negative economic impact, or (2) the
social costs of adopting the otherwise required
10 15
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Fmt 4700
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that the adjusted amounts were
appropriate.12
Pursuant to the 2015 Act, the
Commission now adjusts the penalty
amounts in the June 2016 interim final
rule by multiplying these amounts by
the percentage change between the
Consumer Price Index for all Urban
Consumers (‘‘CPI–U’’) for October 2015,
and the October 2016 CPI–U.13 OMB has
provided its calculation of this
multiplier (the ‘‘CPI–U Multiplier’’) to
agencies.14 After multiplying the June
2016 interim final rule amounts by this
multiplier, the Commission must round
all penalty amounts to the nearest dollar
to determine the new inflation-adjusted
penalty amounts.
For example, the CMP for certain
insider trading violations by controlling
persons under Exchange Act Section
21A(a)(3) 15 was readjusted for inflation
on August 1, 2016, to $1,978,690. To
determine the new CMP under this
provision, the Commission multiplies
the current CMP by the CPI–U
Multiplier of 1.01636, and rounds to the
nearest dollar. Thus, the new CMP for
Exchange Act Section 21A(a)(3) is
$2,011,061.
Below is the Commission’s
calculation of the new penalty amounts
for the penalties it administers.
Penalty
amounts in
June 2016
interim
final rule
CPI–U
multiplier
New adjusted
penalty
amounts
$8,156
81,559
407,794
163,118
1.01636
1.01636
1.01636
1.01636
$8,289
82,893
414,466
165,787
788,401
1.01636
801,299
8,908
89,078
89,078
445,390
1.01636
1.01636
1.01636
1.01636
9,054
90,535
90,535
452,677
increase of the maximum amount of these CMPs
would outweigh the benefits. See 28 U.S.C. 2461
note Sec. 4(c); 2016 OMB Guidance at 3. As part
of the June 2016 interim final rule, the Commission
determined that it was not necessary to seek a
reduced catch-up adjustment determination, but
requested comments on whether the Commission
should reconsider this decision. See Release No.
33–10104 at 8. The Commission did not receive any
comments on this topic and the Commission affirms
its decision not to seek a reduced catch-up
adjustment determination.
13 28 U.S.C. 2461 note Sec. 5.
14 Office of Management and Budget,
Implementation of the 2017 Annual Adjustment
Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (Dec. 16,
2016) (‘‘2017 OMB Guidance’’) at 1, available at
https://www.whitehouse.gov/sites/default/files/
omb/memoranda/2017/m-17-11_0.pdf.
15 15 U.S.C. 78u–1(a)(3).
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18JAR1
Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations
U.S. code citation
Civil monetary penalty description
15 U.S.C. 78u(d)(3) (Exchange Act
Sec. 21(d)(3)).
15 U.S.C. 78u–1(a)(3) (Exchange Act
Sec. 21A(a)(3)).
15 U.S.C. 78u–2 (Exchange Act Sec.
21B).
15 U.S.C. 78ff(b) (Exchange Act Sec.
32(b)).
15 U.S.C. 78ff(c)(1)(B) (Exchange Act
Sec. 32(c)(1)(B)).
15 U.S.C. 78ff(c)(2)(B) (Exchange Act
Sec. 32(c)(2)(B)).
15 U.S.C. 80a–9(d) (Investment Company Act Sec. 9(d)).
15 U.S.C. 80a–41(e) (Investment
Company Act Sec. 42(e)).
15 U.S.C. 80b–3(i) (Investment Advisers Act Sec. 203(i)).
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15 U.S.C. 80b–9(e) (Investment Advisers Act Sec. 209(e)).
15 U.S.C. 7215(c)(4)(D)(i) (SarbanesOxley Act Sec. 105(c)(4)(D)(i)).
15 U.S.C. 7215(c)(4)(D)(ii) (SarbanesOxley Act Sec. 105(c)(4)(D)(ii)).
For natural person/fraud/substantial losses or risk
of losses to others.
For any other person/fraud/substantial losses or
risk of losses to others.
For natural person ....................................................
For any other person ................................................
For natural person/fraud ...........................................
For any other person/fraud .......................................
For natural person/fraud/substantial losses or risk
of losses to others or gains to self.
For any other person/fraud/substantial losses or
risk of losses to others or gain to self.
Insider Trading—controlling person ..........................
16:39 Jan 17, 2017
CPI–U
multiplier
New adjusted
penalty
amounts
178,156
1.01636
181,071
890,780
1.01636
905,353
8,908
89,078
89,078
445,390
178,156
1.01636
1.01636
1.01636
1.01636
1.01636
9,054
90,535
90,535
452,677
181,071
890,780
1.01636
905,353
1,978,690
1.01636
2,011,061
For natural person ....................................................
For any other person ................................................
For natural person/fraud ...........................................
For any other person/fraud .......................................
For natural person/fraud/substantial losses or risk
of losses to others.
For any other person/fraud/substantial losses or
risk of losses to others.
Exchange Act/failure to file information documents,
reports.
Foreign Corrupt Practices—any issuer .....................
8,908
89,078
89,078
445,390
178,156
1.01636
1.01636
1.01636
1.01636
1.01636
9,054
90,535
90,535
452,677
181,071
890,780
1.01636
905,353
525
1.01636
534
19,787
1.01636
20,111
Foreign Corrupt Practices—any agent or stockholder acting on behalf of issuer.
For natural person ....................................................
For any other person ................................................
For natural person/fraud ...........................................
For any other person/fraud .......................................
For natural person/fraud/substantial losses or risk
of losses to others or gains to self.
For any other person/fraud/substantial losses or
risk of losses to others or gain to self.
For natural person ....................................................
For any other person ................................................
For natural person/fraud ...........................................
For any other person/fraud .......................................
For natural person/fraud/substantial losses or risk
of losses to others.
For any other person/fraud/substantial losses or
risk of losses to others.
For natural person ....................................................
For any other person ................................................
For natural person/fraud ...........................................
For any other person/fraud .......................................
For natural person/fraud/substantial losses or risk
of losses to others or gains to self.
For any other person/fraud/substantial losses or
risk of losses to others or gain to self.
For natural person ....................................................
For any other person ................................................
For natural person/fraud ...........................................
For any other person/fraud .......................................
For natural person/fraud/substantial losses or risk
of losses to others.
For any other person/fraud/substantial losses or
risk of losses to others.
For natural person ....................................................
For any other person ................................................
For natural person ....................................................
For any other person ................................................
19,787
1.01636
20,111
8,908
89,078
89,078
445,390
178,156
1.01636
1.01636
1.01636
1.01636
1.01636
9,054
90,535
90,535
452,677
181,071
890,780
1.01636
905,353
8,908
89,078
89,078
445,390
178,156
1.01636
1.01636
1.01636
1.01636
1.01636
9,054
90,535
90,535
452,677
181,071
890,780
1.01636
905,353
8,908
89,078
89,078
445,390
178,156
1.01636
1.01636
1.01636
1.01636
1.01636
9,054
90,535
90,535
452,677
181,071
890,780
1.01636
905,353
8,908
89,078
89,078
445,390
178,156
1.01636
1.01636
1.01636
1.01636
1.01636
9,054
90,535
90,535
452,677
181,071
890,780
1.01636
905,353
131,185
2,623,700
983,888
19,677,750
1.01636
1.01636
1.01636
1.01636
133,331
2,666,624
999,984
19,999,678
Pursuant to the 2015 Act, the
Commission has determined that the
adjusted penalty amounts in this final
VerDate Sep<11>2014
Penalty
amounts in
June 2016
interim
final rule
5369
Jkt 241001
rule (and all penalty adjustments
performed pursuant to the 2015 Act)
will apply to penalties imposed after the
PO 00000
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Fmt 4700
Sfmt 4700
effective date of the adjustment for
violations that occurred after November
2, 2015, the 2015 Act’s enactment date.
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Consistent with this determination, the
Commission is reinstating the penalty
amounts contained in its prior penalty
adjustments under the DCIA for
violations that occurred from December
10, 1996, through November 2, 2015.16
The Commission’s prior penalty
adjustments under the DCIA were
previously included in the Code of
Federal Regulations at 17 CFR
201.1001through 1005 and Tables I
through V to Subpart E. In the June 2016
interim final rule, Section 201.1001 and
Table I were replaced with the new
penalty amounts from the interim final
rule, and Sections 201.1002 through
201.1005 and Tables II to V were
removed. As part of this final rule, the
information in these tables will be
added back into the Code of Federal
Regulations. However, for ease of
reference, the information in these
tables will be consolidated and included
in a single section (17 CFR 201.1001(a))
and Table (Table I to Section 201.1001).
Further, each penalty adjustment
performed pursuant to the 2015 Act
supersedes the prior adjustments under
that Act. Thus, the penalty amounts in
this final rule supersede the amounts in
the June 2016 interim final rule (except
that for the first day this final rule is
effective, the prior year’s penalty
amounts shall apply, see 28 U.S.C. 2461
note Sec. 6). Because of this, the
amounts in the June 2016 interim final
rule will be removed from the Code of
Federal Regulations. The penalty
amounts in this final rule, however,
need only be published in the Federal
Register and will not be added to the
Code of Federal Regulations, in
accordance with the 2015 Act and OMB
guidance.17 As a result, the Commission
is amending 17 CFR 201.1001 to add
subsection (b) to indicate that all
penalty adjustments performed under
the 2015 Act will be published in the
Federal Register and will be made
available on the Commission’s Web
site.18 This framework will avoid the
necessity of revising the Code of Federal
Regulations every year to include the
new inflation-adjusted penalty amounts.
16 One commenter to the June 2016 interim final
rule requested that the Commission re-evaluate the
application of the adjusted penalty amounts
included in that interim final rule to violations that
occurred before the enactment of the 2015 Act (see
Ltr. from Wilmer Cutler Pickering Hale and Dorr
LLP, Aug. 15, 2016). Our determination to apply the
penalty amounts in this final rule to violations that
occurred after November 2, 2015, renders the
commenter’s request moot. As explained below, the
penalty amounts in this final rule supersede the
penalty amounts in the June 2016 interim final rule.
17 28 U.S.C. 2461 note Sec. 4(a)(2); 2017 OMB
Guidance at 3.
18 The Web site will also list the penalty amounts
for violations that occurred on or before November
2, 2015.
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16:39 Jan 17, 2017
Jkt 241001
Section 201.1001(b) will also clarify that
penalty adjustments performed
pursuant to the 2015 Act will only
apply to violations that occurred after
November 2, 2015, the enactment date
of the 2015 Act.
III. Procedural and Other Matters
The Commission is required by the
2015 Act to adjust the CMPs within its
jurisdiction for inflation using a
statutorily prescribed formula and the
2015 Act mandates that agencies
perform this adjustment annually by
January 15th of each year.19 The 2015
Act further provides that these annual
adjustments shall be made
‘‘notwithstanding section 553 of title 5,
United States Code.’’ 20 In light of this
Congressional mandate, the Commission
is not required to provide for public
notice and comment pursuant to the
notice and comment provisions of the
Administrative Procedure Act.21 Under
the Regulatory Flexibility Act, a
regulatory flexibility analysis is required
only when an agency must publish a
general notice of proposed
rulemaking.22 Because public notice
and comment is not required for this
final rule, a regulatory flexibility
analysis is not required. Further, this
rule does not contain any collection of
information requirements as defined by
the Paperwork Reduction Act of 1995 as
amended.23
IV. Economic Analysis 24
The Commission is sensitive to the
costs and benefits that result from its
rules. This regulation merely adjusts
CMPs for inflation as required by the
2015 Act. It has no impact on disclosure
or compliance costs. The Commission
further notes that the CMPs ordered in
SEC proceedings and PCAOB
disciplinary proceedings in fiscal year
2016 totaled approximately $1.28
billion. The inflationary adjustment
required by the 2015 Act results in the
increase of the maximum amount of the
CMPs administered by the Commission
of 1.636%. Assuming that the
Commission is successful in obtaining
civil monetary penalties in fiscal year
19 28
U.S.C. 2461 note Sec. 4(a).
U.S.C. 2461 note Sec. 4(b)(2).
21 5 U.S.C. 553(b)(3)(B). This finding also satisfies
the requirements of 5 U.S.C. 808(2), allowing the
amendment to become effective notwithstanding
the requirement of 5 U.S.C. 801 (if a federal agency
finds that notice and public comment are
impractical, unnecessary or contrary to the public
interest, a rule shall take effect at such time as the
federal agency promulgating the rule determines).
22 5 U.S.C. 603.
23 44 U.S.C. 3501 et. seq.
24 The Commission did not receive any comments
on the economic analysis in the June 2016 interim
final rule.
20 28
PO 00000
Frm 00036
Fmt 4700
Sfmt 4700
2017 in similar proportion to that
obtained in fiscal year 2016, the
inflationary adjustment pursuant to this
final rule would result in an increase in
the CMPs ordered of approximately $21
million.
This potential increase, however,
overstates the effect of the rule. First,
this figure represents the amount of
penalties that could be potentially
ordered, whereas the amount of
penalties collected in any given year—
the amount of penalties that would
affect the economy—can be lower than
the ordered amount. Second, the
adjusted penalty amounts will not apply
to all penalties ordered, but rather only
to those penalties whose associated
violations occurred after November 2,
2015. Third, penalties imposed in
insider trading cases brought in district
court are based on the profit gained or
loss avoided as a result of the violation
rather than by reference to a statutory
dollar amount that is affected by this
regulation.25 The average annual
amount of penalties obtained in insider
trading cases from FY 2010 through FY
2016 is $95.7 million. Third, in many
cases where the Commission has
obtained large civil monetary penalties,
such penalties were calculated on the
basis of the defendant’s gross pecuniary
gain rather than the maximum penalty
dollar amount set by statute that will be
adjusted by the proposed rule.26 In
addition, the intent of the new
regulation is merely to keep pace with
changes in the economy, not to impose
new costs. Therefore, for the instances
in which CMPs affected by this
rulemaking are imposed, the
Commission does not believe that
adjusting civil monetary penalties
pursuant to the 2015 Act will
significantly affect the amount of
penalties it obtains beyond that
necessary to keep pace with inflation.
The benefit provided by the
inflationary adjustment to the maximum
CMPs is that of maintaining the level of
deterrence effectuated by the CMPs, and
not allowing such deterrent effect to be
diminished by inflation. The costs of
implementing this rule should be
negligible because the only change from
the current, baseline situation is
determining potential penalties using a
new maximum dollar amount.
25 15
U.S.C. 78u–1(a)(2).
example, 15 U.S.C. 77t(d)(2)(A), after
adjusting for inflation as required by the 2015 Act,
provides that the amount of the penalty shall not
exceed the greater of $9,054 for a natural person or
$90,535 for any other person, or the gross amount
of pecuniary gain to such defendant as a result of
the violation.
26 For
E:\FR\FM\18JAR1.SGM
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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations
V. Statutory Basis
The Commission is adopting these
revisions to 17 CFR part 201, subpart E
pursuant to the directives and authority
of the Federal Civil Penalties Inflation
Adjustment Act of 1990, Public Law
101–410, 104 Stat. 890–892 (1990),
codified at 28 U.S.C. 2461 note, as
amended.
List of Subjects in 17 CFR Part 201
Administrative practice and
procedure, Claims, Confidential
business information, Lawyers,
Penalties, Securities.
Text of Amendment
For the reasons set forth in the
preamble, part 201, title 17, chapter II of
the Code of Federal Regulations is
amended as follows:
PART 201—RULES OF PRACTICE
Subpart E—Adjustment of Civil
Monetary Penalties
1. The authority citation for Part 201,
Subpart E continues to read as follows:
■
Authority: 28 U.S.C. 2461 note.
■
2. Revise 201.1001 to read as follows:
§ 201.1001
penalties.
Adjustment of civil monetary
(a) For violations from December 10,
1996, through November 2, 2015: As
required by the Inflation Adjustment
Act of 1990, as amended by the Debt
Collection Improvement Act of 1996,
the Commission has adjusted the
maximum amounts of all civil monetary
penalties it administers under the
Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment
Company Act of 1940, the Investment
Advisers Act of 1940, and certain
penalties under the Sarbanes-Oxley Act
of 2002 for inflation in the releases and
prior regulations listed in the footnotes
to Table I. The penalty amounts
provided in Table I apply to violations
of these statutes that occurred from
December 10, 1996, through November
2, 2015, with each column listing the
penalty amounts for violations that
occurred in a particular time frame. To
determine the penalty amounts for
violations that occurred prior to
December 10, 1996, please refer to the
applicable statutory text. To determine
penalty amounts for violations after
November 2, 2015, please refer to
paragraph (b) of this section.
(b) For violations after November 2,
2015: The Federal Civil Penalties
Inflation Adjustment Act, as amended
by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (28 U.S.C. 2461 note), requires that
civil monetary penalties be adjusted on
an annual basis for inflation. Pursuant
to this requirement, the maximum
amounts of all civil monetary penalties
under the Securities Act of 1933, the
Securities Exchange Act of 1934, the
5371
Investment Company Act of 1940, and
the Investment Advisers Act of 1940,
and certain penalties under the
Sarbanes-Oxley Act of 2002 will be
adjusted annually for inflation. Notice
of these adjusted penalty amounts will
be published by the Commission in the
Federal Register on or before January 15
of each calendar year and will be
available, along with the Commission’s
prior inflation adjustments, on the
Commission’s Web site at https://
www.sec.gov/enforce/civil-penaltiesinflation-adjustments.htm. The adjusted
penalty amounts will apply to all
penalties imposed after the effective
date of the adjustment (for the first day
the adjustment is effective, the prior
year’s penalty amounts shall apply), for
violations that occurred after November
2, 2015. The adjusted penalty amount
each year will be the larger of:
(1) The maximum penalty amount for
the previous calendar year; or
(2) An amount adjusted for inflation,
calculated by multiplying the maximum
penalty amount for the previous
calendar year by the percentage by
which the Consumer Price Index for all
Urban Consumers (CPI–U) for the month
of October preceding the current
calendar year exceeds the CPI–U for the
month of October of the calendar year
two years prior to the current calendar
year, adding that amount to the amount
for the previous calendar year, and
rounding the total to the nearest dollar.
TABLE I TO 201.1001—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS FOR VIOLATIONS FROM DECEMBER 10, 1996,
THROUGH NOVEMBER 2, 2015
Date of violation and corresponding penalty
Civil monetary penalty
description
U.S. Code citation
15 U.S.C. 77h–1(g) (Securities
Act Sec. 8A(g)).
mstockstill on DSK3G9T082PROD with RULES
15 U.S.C. 77t(d) (Securities Act
Sec. 20(d)).
15 U.S.C. 78u(d)(3) (Exchange
Act Sec. 21(d)(3)).
VerDate Sep<11>2014
Dec. 10, 1996–
Feb. 2, 2001 i
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
For natural person/fraud/substantial losses or risk of
losses to others or gains to
self.
For any other person/fraud/substantial losses or risk of
losses to others or gain to
self.
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
For natural person/fraud/substantial losses or risk of
losses to others.
For any other person/fraud/substantial losses or risk of
losses to others.
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
16:39 Jan 17, 2017
Jkt 241001
PO 00000
Frm 00037
Feb. 3, 2001–
Feb. 14, 2005 ii
Feb. 15, 2005–
Mar. 3, 2009 iii
Mar. 4, 2009–
Mar. 5, 2013 iv
vi $7,500
Mar. 6, 2013–
Nov. 2, 2015 v
vi 150,000
$7,500
80,000
80,000
400,000
160,000
N/A
vi 725,000
775,000
$6,500
60,000
60,000
300,000
120,000
$6,500
65,000
65,000
325,000
130,000
7,500
75,000
75,000
375,000
150,000
7,500
80,000
80,000
400,000
160,000
550,000
600,000
650,000
725,000
775,000
5,500
55,000
55,000
275,000
6,500
60,000
60,000
300,000
6,500
65,000
65,000
325,000
7,500
75,000
75,000
375,000
7,500
80,000
80,000
400,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$5,500
55,000
55,000
275,000
110,000
Fmt 4700
Sfmt 4700
E:\FR\FM\18JAR1.SGM
18JAR1
vi 75,000
vi 75,000
vi 375,000
5372
Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations
TABLE I TO 201.1001—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS FOR VIOLATIONS FROM DECEMBER 10, 1996,
THROUGH NOVEMBER 2, 2015—Continued
Date of violation and corresponding penalty
Civil monetary penalty
description
U.S. Code citation
15 U.S.C. 78u–1(a)(3) (Exchange Act Sec. 21A(a)(3)).
15 U.S.C. 78u–2 (Exchange Act
Sec. 21B).
15 U.S.C. 78ff(b) (Exchange Act
Sec. 32(b)).
15 U.S.C. 78ff(c)(1)(B) (Exchange Act Sec. 32(c)(1)(B)).
15 U.S.C. 78ff(c)(2)(B) (Exchange Act Sec. 32(c)(2)(B)).
15 U.S.C. 80a–9(d) (Investment
Company Act Sec. 9(d)).
15 U.S.C. 80a–41(e) (Investment Company Act Sec.
42(e)).
15 U.S.C. 80b–3(i) (Investment
Advisers Act Sec. 203(i)).
mstockstill on DSK3G9T082PROD with RULES
15 U.S.C. 80b–9(e) (Investment
Advisers Act Sec. 209(e)).
15 U.S.C. 7215(c)(4)(D)(i) (Sarbanes-Oxley Act Sec.
105(c)(4)(D)(i)).
VerDate Sep<11>2014
Dec. 10, 1996–
Feb. 2, 2001 i
For natural person/fraud/substantial losses or risk of
losses to others or gains to
self.
For any other person/fraud/substantial losses or risk of
losses to others or gain to
self.
Insider Trading—controlling person.
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
For natural person/fraud/substantial losses or risk of
losses to others.
For any other person/fraud/substantial losses or risk of
losses to others.
Exchange Act/failure to file information documents, reports.
Foreign Corrupt Practices—any
issuer.
Foreign Corrupt Practices—any
agent or stockholder acting
on behalf of issuer.
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
For natural person/fraud/substantial losses or risk of
losses to others or gains to
self.
For any other person/fraud/substantial losses or risk of
losses to others or gain to
self.
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
For natural person/fraud/substantial losses or risk of
losses to others.
For any other person/fraud/substantial losses or risk of
losses to others.
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
For natural person/fraud/substantial losses or risk of
losses to others or gains to
self.
For any other person/fraud/substantial losses or risk of
losses to others or gain to
self.
For natural person .....................
For any other person ................
For natural person/fraud ...........
For any other person/fraud .......
For natural person/fraud/substantial losses or risk of
losses to others.
For any other person/fraud/substantial losses or risk of
losses to others.
For natural person .....................
For any other person ................
16:39 Jan 17, 2017
Jkt 241001
PO 00000
Frm 00038
Feb. 3, 2001–
Feb. 14, 2005 ii
Feb. 15, 2005–
Mar. 3, 2009 iii
Mar. 4, 2009–
Mar. 5, 2013 iv
Mar. 6, 2013–
Nov. 2, 2015 v
110,000
120,000
130,000
150,000
160,000
550,000
600,000
650,000
725,000
775,000
1,100,000
1,200,000
1,275,000
1,425,000
1,525,000
5,500
55,000
55,000
275,000
110,000
6,500
60,000
60,000
300,000
120,000
6,500
65,000
65,000
325,000
130,000
7,500
75,000
75,000
375,000
150,000
7,500
80,000
80,000
400,000
160,000
550,000
600,000
650,000
725,000
775,000
110
110
110
110
210
11,000
11,000
11,000
16,000
16,000
11,000
11,000
11,000
16,000
16,000
5,500
55,000
55,000
275,000
110,000
6,500
60,000
60,000
300,000
120,000
6,500
65,000
65,000
325,000
130,000
7,500
75,000
75,000
375,000
150,000
7,500
80,000
80,000
400,000
160,000
550,000
600,000
650,000
725,000
775,000
5,500
55,000
6,500
60,000
6,500
65,000
7,500
75,000
7,500
80,000
55,000
275,000
110,000
60,000
300,000
120,000
65,000
325,000
130,000
75,000
375,000
150,000
80,000
400,000
160,000
550,000
600,000
650,000
725,000
775,000
5,500
55,000
55,000
275,000
110,000
6,500
60,000
60,000
300,000
120,000
6,500
65,000
65,000
325,000
130,000
7,500
75,000
75,000
375,000
150,000
7,500
80,000
80,000
400,000
160,000
550,000
600,000
650,000
725,000
775,000
5,500
55,000
55,000
275,000
110,000
6,500
60,000
60,000
300,000
120,000
6,500
65,000
65,000
325,000
130,000
7,500
75,000
75,000
375,000
150,000
7,500
80,000
80,000
400,000
160,000
550,000
600,000
650,000
725,000
775,000
N/A
N/A
vii 100,000
vii 2,000,000
110,000
2,100,000
120,000
2,375,000
130,000
2,525,000
Fmt 4700
Sfmt 4700
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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations
5373
TABLE I TO 201.1001—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS FOR VIOLATIONS FROM DECEMBER 10, 1996,
THROUGH NOVEMBER 2, 2015—Continued
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty
description
15 U.S.C. 7215(c)(4)(D)(ii) (Sarbanes-Oxley Act Sec.
105(c)(4)(D)(ii)).
For natural person .....................
For any other person ................
Dec. 10, 1996–
Feb. 2, 2001 i
N/A
N/A
Feb. 3, 2001–
Feb. 14, 2005 ii
vii 750,000
vii 15,000,000
Feb. 15, 2005–
Mar. 3, 2009 iii
800,000
15,825,000
Mar. 4, 2009–
Mar. 5, 2013 iv
900,000
17,800,000
Mar. 6, 2013–
Nov. 2, 2015 v
950,000
18,925,000
i Release Nos. 33–7361, 34–37912, IA–1596, IC–22310, dated November 1, 1996 (effective December 9, 1996), previously found at 17 CFR 201.1001 and Table I
to Subpart E of Part 201.
ii Release Nos. 33–7946, 34–43897, IA–1921, IC–24846, dated January 31, 2001 (effective February 2, 2001), previously found at 17 CFR 201.1002 and Table II to
Subpart E of Part 201.
iii Release Nos. 33–8530, 34–51136, IA–2348, IC–26748, dated February 9, 2005 (effective February 14, 2005), previously found at 17 CFR 201.1003 and Table III
to Subpart E of Part 201.
iv Release Nos. 33–9009, 34–59449, IA–2845, IC–28635, dated February 25, 2009 (effective March 3, 2009), previously found at 17 CFR 201.1004 and Table IV to
Subpart E of Part 201.
v Release Nos. 33–9387, 34–68994, IA–3557, IC–30408, dated February 27, 2013 (effective March 5, 2013), previously found at 17 CFR 201.1005 and Table V to
Subpart E of Part 201.
vi Effective from July 21, 2010 (enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. 111–203), through March 5, 2013.
vii Effective from July 30, 2002 (enactment of the Sarbanes-Oxley Act of 2002, Pub. L. 107–204), through February 14, 2005.
By the Commission.
January 6, 2017.
Brent J. Fields,
Secretary.
Occupational Safety and Health
Administration, Employee Benefits
Security Administration, and Mine
Safety and Health Administration,
Department of Labor.
ACTION: Final rule.
[FR Doc. 2017–00421 Filed 1–13–17; 8:45 am]
BILLING CODE 8011–01–P
calling (202) 693–5959 (this is not a tollfree number). TTY/TDD callers may dial
toll-free 1–877–889–5627 to obtain
information or request materials in
alternative formats.
SUPPLEMENTARY INFORMATION:
The U.S. Department of Labor
(Department) is publishing this final
rule to adjust for inflation the civil
monetary penalties assessed or enforced
in its regulations, pursuant to the
Federal Civil Penalties Inflation
Adjustment Act of 1990 as amended by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Inflation Adjustment Act). The
Inflation Adjustment Act requires the
Department to annually adjust its civil
money penalty levels for inflation no
later than January 15 of each year. The
Inflation Adjustment Act provides that
agencies shall adjust civil monetary
penalties notwithstanding Section 553
of the Administrative Procedure Act
(APA). Additionally, the Inflation
Adjustment Act provides a cost-of-living
formula for adjustment of the civil
penalties. Accordingly, this final rule
sets forth the Department’s 2017 annual
adjustments for inflation to its civil
monetary penalties, effective January 13,
2017.
DATES: This final rule is effective on
January 13, 2017. As provided by the
Inflation Adjustment Act, the increased
penalty levels apply to any penalties
assessed after the effective date of this
rule.
FOR FURTHER INFORMATION CONTACT:
Pamela Peters, Program Analyst, U.S.
Department of Labor, Room S–2312, 200
Constitution Avenue, NW., Washington,
DC 20210; telephone: (202) 693–5959
(this is not a toll-free number). Copies
of this final rule may be obtained in
alternative formats (large print, Braille,
audio tape or disc), upon request, by
Preamble Table of Contents
SUMMARY:
DEPARTMENT OF LABOR
Employment and Training
Administration
20 CFR Part 655
Office of Workers’ Compensation
Programs
20 CFR Parts 702, 725, and 726
Wage and Hour Division
29 CFR Parts 500, 501, 530, 570, 578,
579, 801, and 825
Occupational Safety and Health
Administration
29 CFR Part 1903
Employee Benefits Security
Administration
29 CFR Part 2560, 2575, and 2590
Mine Safety and Health Administration
30 CFR Part 100
mstockstill on DSK3G9T082PROD with RULES
RIN 1290–AA31
Department of Labor Federal Civil
Penalties Inflation Adjustment Act
Annual Adjustments for 2017
Employment and Training
Administration, Office of Workers’
Compensation Programs, Office of the
Secretary, Wage and Hour Division,
AGENCY:
VerDate Sep<11>2014
16:39 Jan 17, 2017
Jkt 241001
PO 00000
Frm 00039
Fmt 4700
Sfmt 4700
I. Background
II. Adjustment for 2017
III. Discussion of Public Comments
IV. Paperwork Reduction Act
V. Administrative Procedure Act
VI. Executive Order 12866: Regulatory
Planning and Review, and Executive
Order 13563: Improving Regulation and
Regulatory Review
VII. Regulatory Flexibility Act and Small
Business Regulatory Enforcement
Fairness Act
VIII. Other Regulatory Considerations
A. The Unfunded Mandates Reform Act of
1995
B. Executive Order 13132: Federalism
C. Executive Order 13175: Indian Tribal
Governments
D. The Treasury and General Government
Appropriations Act of 1999: Assessment
of Federal Regulations and Policies on
Families
E. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
F. Environmental Impact Assessment
G. Executive Order 13211: Energy Supply
H. Executive Order 12630: Constitutionally
Protected Property Rights
I. Executive Order 12988: Civil Justice
Reform Analysis
I. Background
On November 2, 2015, Congress
enacted the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015, Public Law 114–74, 701
(Inflation Adjustment Act), which
further amended the Federal Civil
Penalties Inflation Adjustment Act of
1990 as previously amended by the
1996 Debt Collection Improvement Act
(collectively, the ‘‘Prior Inflation
Adjustment Act’’), to improve the
E:\FR\FM\18JAR1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Rules and Regulations]
[Pages 5367-5373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00421]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 201
[Release Nos. 33-10276; 34-79749; IA-4599; IC-32414]
Adjustments to Civil Monetary Penalty Amounts
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Securities and Exchange Commission (the ``Commission'') is
adopting a final rule to implement the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (the ``2015 Act''),
which amended the Federal Civil Penalties Inflation Adjustment Act of
1990 (the ``Inflation Adjustment Act''), as previously amended by the
Debt Collection Improvement Act of 1996 (the ``DCIA''). The 2015 Act
requires all agencies to annually adjust for inflation the civil
monetary penalties that can be imposed under the statutes administered
by the agency. Pursuant to this requirement, this final rule performs
the first annual adjustment for inflation of the maximum amount of
civil monetary penalties administered by the Commission under the
Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940,
and certain penalties under the Sarbanes-Oxley Act of 2002. This
adjustment will apply to all penalties imposed after the effective date
of this final rule for violations after November 2, 2015. For
violations that occurred on or before November 2, 2015, the Commission
is reinstating the penalty amounts in the Commission's prior penalty
adjustments performed under the DCIA.
DATES: Effective Date: January 18, 2017.
FOR FURTHER INFORMATION CONTACT: James A. Cappoli, Assistant General
Counsel, Office of the General Counsel, at (202) 551-7923, or Stephen
M. Ng, Senior Counsel, Office of the General Counsel, at (202) 551-
7957.
SUPPLEMENTARY INFORMATION:
I. Background
This final rule implements the 2015 Act,\1\ which amended the
Inflation Adjustment Act.\2\ The Inflation Adjustment Act previously
had been amended by the DCIA \3\ to require that each federal agency
adopt regulations at least once every four years that adjust for
inflation the civil monetary penalties (``CMPs'') that could be imposed
under the statutes administered by the agency. Pursuant to the
requirements of the DCIA, the Commission previously adopted regulations
in 1996, 2001, 2005, 2009, and 2013 to adjust the maximum amount of the
CMPs that could be imposed under the statutes the Commission
administers.\4\
---------------------------------------------------------------------------
\1\ Public Law 114-74 Sec. 701, 129 Stat. 599-601 (Nov. 2,
2015), codified at 28 U.S.C. 2461 note.
\2\ Public Law 101-410, 104 Stat. 890-892 (1990), codified at 28
U.S.C. 2461 note.
\3\ Public Law 104-134, Title III, Sec. 31001(s)(1), 110 Stat.
1321-373 (1996), codified at 28 U.S.C. 2461 note.
\4\ See Release Nos. 33-7361, 34-37912, IA-1596, IC-22310, dated
November 1, 1996 (effective December 9, 1996), previously found at
17 CFR 201.1001 and Table I to Subpart E of Part 201; Release Nos.
33-7946, 34-43897, IA-1921, IC-24846, dated January 31, 2001
(effective February 2, 2001), previously found at 17 CFR 201.1002
and Table II to Subpart E of Part 201; Release Nos. 33-8530, 34-
51136, IA-2348, IC-26748, dated February 9, 2005 (effective February
14, 2005), previously found at 17 CFR 201.1003 and Table III to
Subpart E of Part 201; Release Nos. 33-9009, 34-59449, IA-2845, IC-
28635, dated February 25, 2009 (effective March 3, 2009), previously
found at 17 CFR 201.1004 and Table IV to Subpart E of Part 201; and
Release Nos. 33-9387, 34-68994, IA-3557, IC-30408, dated February
27, 2013 (effective March 5, 2013), previously found at 17 CFR
201.1005 and Table V to Subpart E of Part 201.
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[[Page 5368]]
The 2015 Act replaces the inflation adjustment mechanism prescribed
in the DCIA with a new mechanism for calculating the inflation-adjusted
amount of CMPs. Each agency was first required to use this new
mechanism to adjust the maximum amount of its CMPs \5\ in an initial
``catch-up'' adjustment.\6\ Pursuant to this requirement, the
Commission issued an interim final rule adjusting its CMPs on June 27,
2016 (the ``June 2016 interim final rule'').\7\ After performing the
catch-up adjustment, each agency must now perform annual adjustments
for inflation, and publish these adjustments in the Federal Register by
January 15 of each calendar year.\8\
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\5\ The 2015 Act also applies to minimum penalty amounts and
penalty ranges. See 28 U.S.C. 2461 note Sec. 5(a). All of the
statutes administered by the Commission, however, only include
maximum penalty amounts. Thus, in this final rule, we only refer to
the effect of the 2015 Act on maximum penalty amounts.
\6\ 28 U.S.C. 2461 note Sec. 4(b)(1); Office of Management and
Budget, Implementation of the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (February 24, 2016) (``2016
OMB Guidance'') at 1, available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
\7\ Release Nos. 33-10104; 34-78156; IA-4437; IC-32162 (June 27,
2016).
\8\ 28 U.S.C. 2461 note Sec. 4; 2016 OMB Guidance at 4.
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A CMP is defined in relevant part as any penalty, fine, or other
sanction that: (1) Is for a specific amount, or has a maximum amount,
as provided by federal law; and (2) is assessed or enforced by an
agency in an administrative proceeding or by a federal court pursuant
to federal law.\9\ This definition applies to the monetary penalty
provisions contained in four statutes administered by the Commission:
The Securities Act of 1933; the Securities Exchange Act of 1934 (the
``Exchange Act''); the Investment Company Act of 1940; and the
Investment Advisers Act of 1940. In addition, the Sarbanes-Oxley Act of
2002 provides the Public Company Accounting Oversight Board (the
``PCAOB'') authority to levy civil monetary penalties in its
disciplinary proceedings pursuant to 15 U.S.C. 7215(c)(4)(D).\10\ The
definition of a CMP in the Inflation Adjustment Act encompasses such
civil monetary penalties.\11\
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\9\ 28 U.S.C. 2461 note Sec. 3(2).
\10\ 15 U.S.C. 7215(c)(4)(D).
\11\ The Commission may by order affirm, modify, remand, or set
aside sanctions, including civil monetary penalties, imposed by the
PCAOB. See Section 107(c) of the Sarbanes-Oxley Act of 2002, 15
U.S.C. 7217. The Commission may enforce such orders in federal
district court pursuant to Section 21(e) of the Securities Exchange
Act of 1934. As a result, penalties assessed by the PCAOB in its
disciplinary proceedings are penalties ``enforced'' by the
Commission for purposes of the Inflation Adjustment Act. See
Adjustments to Civil Monetary Penalty Amounts, Release No. 33-8530
(Feb. 4, 2005) [70 FR 7606 (Feb. 14, 2005)].
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II. Adjusting the Commission's Penalty Amounts for Inflation
This final rule implements the first of the required annual
adjustments under the 2015 Act for all penalties under the Securities
Act, the Exchange Act, the Investment Company Act, and the Investment
Advisers Act, and certain penalties under the Sarbanes-Oxley Act.
As the baseline in calculating these new penalty amounts, the
Commission uses the penalty amounts in the Commission's June 2016
interim final rule. The penalty amounts in that interim final rule used
the new inflation adjustment mechanism in the 2015 Act as part of the
``catch-up adjustment'' required by that Act. The Commission affirms
that the amounts in the June 2016 interim final rule were correct and
that the adjusted amounts were appropriate.\12\
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\12\ The 2015 Act provided that agencies could seek approval
from OMB to reduce the amount of the catch-up adjustment required by
the 2015 Act (a ``reduced catch-up determination'') if: (1) The
otherwise required increase of the maximum amount of the CMPs
administered by the agency would have a negative economic impact, or
(2) the social costs of adopting the otherwise required increase of
the maximum amount of these CMPs would outweigh the benefits. See 28
U.S.C. 2461 note Sec. 4(c); 2016 OMB Guidance at 3. As part of the
June 2016 interim final rule, the Commission determined that it was
not necessary to seek a reduced catch-up adjustment determination,
but requested comments on whether the Commission should reconsider
this decision. See Release No. 33-10104 at 8. The Commission did not
receive any comments on this topic and the Commission affirms its
decision not to seek a reduced catch-up adjustment determination.
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Pursuant to the 2015 Act, the Commission now adjusts the penalty
amounts in the June 2016 interim final rule by multiplying these
amounts by the percentage change between the Consumer Price Index for
all Urban Consumers (``CPI-U'') for October 2015, and the October 2016
CPI-U.\13\ OMB has provided its calculation of this multiplier (the
``CPI-U Multiplier'') to agencies.\14\ After multiplying the June 2016
interim final rule amounts by this multiplier, the Commission must
round all penalty amounts to the nearest dollar to determine the new
inflation-adjusted penalty amounts.
---------------------------------------------------------------------------
\13\ 28 U.S.C. 2461 note Sec. 5.
\14\ Office of Management and Budget, Implementation of the 2017
Annual Adjustment Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (Dec. 16, 2016) (``2017 OMB
Guidance'') at 1, available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
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For example, the CMP for certain insider trading violations by
controlling persons under Exchange Act Section 21A(a)(3) \15\ was
readjusted for inflation on August 1, 2016, to $1,978,690. To determine
the new CMP under this provision, the Commission multiplies the current
CMP by the CPI-U Multiplier of 1.01636, and rounds to the nearest
dollar. Thus, the new CMP for Exchange Act Section 21A(a)(3) is
$2,011,061.
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\15\ 15 U.S.C. 78u-1(a)(3).
---------------------------------------------------------------------------
Below is the Commission's calculation of the new penalty amounts
for the penalties it administers.
----------------------------------------------------------------------------------------------------------------
Penalty
amounts in New adjusted
U.S. code citation Civil monetary penalty June 2016 CPI-U penalty
description interim final multiplier amounts
rule
----------------------------------------------------------------------------------------------------------------
15 U.S.C. 77h-1(g) (Securities Act For natural person......... $8,156 1.01636 $8,289
Sec. 8A(g)). For any other person....... 81,559 1.01636 82,893
For any other person/fraud. 407,794 1.01636 414,466
For natural person/fraud/ 163,118 1.01636 165,787
substantial losses or risk
of losses to others or
gains to self.
For any other person/fraud/ 788,401 1.01636 801,299
substantial losses or risk
of losses to others or
gain to self.
15 U.S.C. 77t(d) (Securities Act For natural person......... 8,908 1.01636 9,054
Sec. 20(d)). For any other person....... 89,078 1.01636 90,535
For natural person/fraud... 89,078 1.01636 90,535
For any other person/fraud. 445,390 1.01636 452,677
[[Page 5369]]
For natural person/fraud/ 178,156 1.01636 181,071
substantial losses or risk
of losses to others.
For any other person/fraud/ 890,780 1.01636 905,353
substantial losses or risk
of losses to others.
15 U.S.C. 78u(d)(3) (Exchange Act For natural person......... 8,908 1.01636 9,054
Sec. 21(d)(3)). For any other person....... 89,078 1.01636 90,535
For natural person/fraud... 89,078 1.01636 90,535
For any other person/fraud. 445,390 1.01636 452,677
For natural person/fraud/ 178,156 1.01636 181,071
substantial losses or risk
of losses to others or
gains to self.
For any other person/fraud/ 890,780 1.01636 905,353
substantial losses or risk
of losses to others or
gain to self.
15 U.S.C. 78u-1(a)(3) (Exchange Act Insider Trading-- 1,978,690 1.01636 2,011,061
Sec. 21A(a)(3)). controlling person.
15 U.S.C. 78u-2 (Exchange Act Sec. For natural person......... 8,908 1.01636 9,054
21B). For any other person....... 89,078 1.01636 90,535
For natural person/fraud... 89,078 1.01636 90,535
For any other person/fraud. 445,390 1.01636 452,677
For natural person/fraud/ 178,156 1.01636 181,071
substantial losses or risk
of losses to others.
For any other person/fraud/ 890,780 1.01636 905,353
substantial losses or risk
of losses to others.
15 U.S.C. 78ff(b) (Exchange Act Exchange Act/failure to 525 1.01636 534
Sec. 32(b)). file information
documents, reports.
15 U.S.C. 78ff(c)(1)(B) (Exchange Foreign Corrupt Practices-- 19,787 1.01636 20,111
Act Sec. 32(c)(1)(B)). any issuer.
15 U.S.C. 78ff(c)(2)(B) (Exchange Foreign Corrupt Practices-- 19,787 1.01636 20,111
Act Sec. 32(c)(2)(B)). any agent or stockholder
acting on behalf of issuer.
15 U.S.C. 80a-9(d) (Investment For natural person......... 8,908 1.01636 9,054
Company Act Sec. 9(d)). For any other person....... 89,078 1.01636 90,535
For natural person/fraud... 89,078 1.01636 90,535
For any other person/fraud. 445,390 1.01636 452,677
For natural person/fraud/ 178,156 1.01636 181,071
substantial losses or risk
of losses to others or
gains to self.
For any other person/fraud/ 890,780 1.01636 905,353
substantial losses or risk
of losses to others or
gain to self.
15 U.S.C. 80a-41(e) (Investment For natural person......... 8,908 1.01636 9,054
Company Act Sec. 42(e)). For any other person....... 89,078 1.01636 90,535
For natural person/fraud... 89,078 1.01636 90,535
For any other person/fraud. 445,390 1.01636 452,677
For natural person/fraud/ 178,156 1.01636 181,071
substantial losses or risk
of losses to others.
For any other person/fraud/ 890,780 1.01636 905,353
substantial losses or risk
of losses to others.
15 U.S.C. 80b-3(i) (Investment For natural person......... 8,908 1.01636 9,054
Advisers Act Sec. 203(i)). For any other person....... 89,078 1.01636 90,535
For natural person/fraud... 89,078 1.01636 90,535
For any other person/fraud. 445,390 1.01636 452,677
For natural person/fraud/ 178,156 1.01636 181,071
substantial losses or risk
of losses to others or
gains to self.
For any other person/fraud/ 890,780 1.01636 905,353
substantial losses or risk
of losses to others or
gain to self.
15 U.S.C. 80b-9(e) (Investment For natural person......... 8,908 1.01636 9,054
Advisers Act Sec. 209(e)). For any other person....... 89,078 1.01636 90,535
For natural person/fraud... 89,078 1.01636 90,535
For any other person/fraud. 445,390 1.01636 452,677
For natural person/fraud/ 178,156 1.01636 181,071
substantial losses or risk
of losses to others.
For any other person/fraud/ 890,780 1.01636 905,353
substantial losses or risk
of losses to others.
15 U.S.C. 7215(c)(4)(D)(i) For natural person......... 131,185 1.01636 133,331
(Sarbanes-Oxley Act Sec. For any other person....... 2,623,700 1.01636 2,666,624
105(c)(4)(D)(i)).
15 U.S.C. 7215(c)(4)(D)(ii) For natural person......... 983,888 1.01636 999,984
(Sarbanes-Oxley Act Sec. For any other person....... 19,677,750 1.01636 19,999,678
105(c)(4)(D)(ii)).
----------------------------------------------------------------------------------------------------------------
Pursuant to the 2015 Act, the Commission has determined that the
adjusted penalty amounts in this final rule (and all penalty
adjustments performed pursuant to the 2015 Act) will apply to penalties
imposed after the effective date of the adjustment for violations that
occurred after November 2, 2015, the 2015 Act's enactment date.
[[Page 5370]]
Consistent with this determination, the Commission is reinstating the
penalty amounts contained in its prior penalty adjustments under the
DCIA for violations that occurred from December 10, 1996, through
November 2, 2015.\16\
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\16\ One commenter to the June 2016 interim final rule requested
that the Commission re-evaluate the application of the adjusted
penalty amounts included in that interim final rule to violations
that occurred before the enactment of the 2015 Act (see Ltr. from
Wilmer Cutler Pickering Hale and Dorr LLP, Aug. 15, 2016). Our
determination to apply the penalty amounts in this final rule to
violations that occurred after November 2, 2015, renders the
commenter's request moot. As explained below, the penalty amounts in
this final rule supersede the penalty amounts in the June 2016
interim final rule.
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The Commission's prior penalty adjustments under the DCIA were
previously included in the Code of Federal Regulations at 17 CFR
201.1001through 1005 and Tables I through V to Subpart E. In the June
2016 interim final rule, Section 201.1001 and Table I were replaced
with the new penalty amounts from the interim final rule, and Sections
201.1002 through 201.1005 and Tables II to V were removed. As part of
this final rule, the information in these tables will be added back
into the Code of Federal Regulations. However, for ease of reference,
the information in these tables will be consolidated and included in a
single section (17 CFR 201.1001(a)) and Table (Table I to Section
201.1001).
Further, each penalty adjustment performed pursuant to the 2015 Act
supersedes the prior adjustments under that Act. Thus, the penalty
amounts in this final rule supersede the amounts in the June 2016
interim final rule (except that for the first day this final rule is
effective, the prior year's penalty amounts shall apply, see 28 U.S.C.
2461 note Sec. 6). Because of this, the amounts in the June 2016
interim final rule will be removed from the Code of Federal
Regulations. The penalty amounts in this final rule, however, need only
be published in the Federal Register and will not be added to the Code
of Federal Regulations, in accordance with the 2015 Act and OMB
guidance.\17\ As a result, the Commission is amending 17 CFR 201.1001
to add subsection (b) to indicate that all penalty adjustments
performed under the 2015 Act will be published in the Federal Register
and will be made available on the Commission's Web site.\18\ This
framework will avoid the necessity of revising the Code of Federal
Regulations every year to include the new inflation-adjusted penalty
amounts. Section 201.1001(b) will also clarify that penalty adjustments
performed pursuant to the 2015 Act will only apply to violations that
occurred after November 2, 2015, the enactment date of the 2015 Act.
---------------------------------------------------------------------------
\17\ 28 U.S.C. 2461 note Sec. 4(a)(2); 2017 OMB Guidance at 3.
\18\ The Web site will also list the penalty amounts for
violations that occurred on or before November 2, 2015.
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III. Procedural and Other Matters
The Commission is required by the 2015 Act to adjust the CMPs
within its jurisdiction for inflation using a statutorily prescribed
formula and the 2015 Act mandates that agencies perform this adjustment
annually by January 15th of each year.\19\ The 2015 Act further
provides that these annual adjustments shall be made ``notwithstanding
section 553 of title 5, United States Code.'' \20\ In light of this
Congressional mandate, the Commission is not required to provide for
public notice and comment pursuant to the notice and comment provisions
of the Administrative Procedure Act.\21\ Under the Regulatory
Flexibility Act, a regulatory flexibility analysis is required only
when an agency must publish a general notice of proposed
rulemaking.\22\ Because public notice and comment is not required for
this final rule, a regulatory flexibility analysis is not required.
Further, this rule does not contain any collection of information
requirements as defined by the Paperwork Reduction Act of 1995 as
amended.\23\
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\19\ 28 U.S.C. 2461 note Sec. 4(a).
\20\ 28 U.S.C. 2461 note Sec. 4(b)(2).
\21\ 5 U.S.C. 553(b)(3)(B). This finding also satisfies the
requirements of 5 U.S.C. 808(2), allowing the amendment to become
effective notwithstanding the requirement of 5 U.S.C. 801 (if a
federal agency finds that notice and public comment are impractical,
unnecessary or contrary to the public interest, a rule shall take
effect at such time as the federal agency promulgating the rule
determines).
\22\ 5 U.S.C. 603.
\23\ 44 U.S.C. 3501 et. seq.
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IV. Economic Analysis \24\
---------------------------------------------------------------------------
\24\ The Commission did not receive any comments on the economic
analysis in the June 2016 interim final rule.
---------------------------------------------------------------------------
The Commission is sensitive to the costs and benefits that result
from its rules. This regulation merely adjusts CMPs for inflation as
required by the 2015 Act. It has no impact on disclosure or compliance
costs. The Commission further notes that the CMPs ordered in SEC
proceedings and PCAOB disciplinary proceedings in fiscal year 2016
totaled approximately $1.28 billion. The inflationary adjustment
required by the 2015 Act results in the increase of the maximum amount
of the CMPs administered by the Commission of 1.636%. Assuming that the
Commission is successful in obtaining civil monetary penalties in
fiscal year 2017 in similar proportion to that obtained in fiscal year
2016, the inflationary adjustment pursuant to this final rule would
result in an increase in the CMPs ordered of approximately $21 million.
This potential increase, however, overstates the effect of the
rule. First, this figure represents the amount of penalties that could
be potentially ordered, whereas the amount of penalties collected in
any given year--the amount of penalties that would affect the economy--
can be lower than the ordered amount. Second, the adjusted penalty
amounts will not apply to all penalties ordered, but rather only to
those penalties whose associated violations occurred after November 2,
2015. Third, penalties imposed in insider trading cases brought in
district court are based on the profit gained or loss avoided as a
result of the violation rather than by reference to a statutory dollar
amount that is affected by this regulation.\25\ The average annual
amount of penalties obtained in insider trading cases from FY 2010
through FY 2016 is $95.7 million. Third, in many cases where the
Commission has obtained large civil monetary penalties, such penalties
were calculated on the basis of the defendant's gross pecuniary gain
rather than the maximum penalty dollar amount set by statute that will
be adjusted by the proposed rule.\26\ In addition, the intent of the
new regulation is merely to keep pace with changes in the economy, not
to impose new costs. Therefore, for the instances in which CMPs
affected by this rulemaking are imposed, the Commission does not
believe that adjusting civil monetary penalties pursuant to the 2015
Act will significantly affect the amount of penalties it obtains beyond
that necessary to keep pace with inflation.
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\25\ 15 U.S.C. 78u-1(a)(2).
\26\ For example, 15 U.S.C. 77t(d)(2)(A), after adjusting for
inflation as required by the 2015 Act, provides that the amount of
the penalty shall not exceed the greater of $9,054 for a natural
person or $90,535 for any other person, or the gross amount of
pecuniary gain to such defendant as a result of the violation.
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The benefit provided by the inflationary adjustment to the maximum
CMPs is that of maintaining the level of deterrence effectuated by the
CMPs, and not allowing such deterrent effect to be diminished by
inflation. The costs of implementing this rule should be negligible
because the only change from the current, baseline situation is
determining potential penalties using a new maximum dollar amount.
[[Page 5371]]
V. Statutory Basis
The Commission is adopting these revisions to 17 CFR part 201,
subpart E pursuant to the directives and authority of the Federal Civil
Penalties Inflation Adjustment Act of 1990, Public Law 101-410, 104
Stat. 890-892 (1990), codified at 28 U.S.C. 2461 note, as amended.
List of Subjects in 17 CFR Part 201
Administrative practice and procedure, Claims, Confidential
business information, Lawyers, Penalties, Securities.
Text of Amendment
For the reasons set forth in the preamble, part 201, title 17,
chapter II of the Code of Federal Regulations is amended as follows:
PART 201--RULES OF PRACTICE
Subpart E--Adjustment of Civil Monetary Penalties
0
1. The authority citation for Part 201, Subpart E continues to read as
follows:
Authority: 28 U.S.C. 2461 note.
0
2. Revise 201.1001 to read as follows:
Sec. 201.1001 Adjustment of civil monetary penalties.
(a) For violations from December 10, 1996, through November 2,
2015: As required by the Inflation Adjustment Act of 1990, as amended
by the Debt Collection Improvement Act of 1996, the Commission has
adjusted the maximum amounts of all civil monetary penalties it
administers under the Securities Act of 1933, the Securities Exchange
Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and certain penalties under the Sarbanes-Oxley
Act of 2002 for inflation in the releases and prior regulations listed
in the footnotes to Table I. The penalty amounts provided in Table I
apply to violations of these statutes that occurred from December 10,
1996, through November 2, 2015, with each column listing the penalty
amounts for violations that occurred in a particular time frame. To
determine the penalty amounts for violations that occurred prior to
December 10, 1996, please refer to the applicable statutory text. To
determine penalty amounts for violations after November 2, 2015, please
refer to paragraph (b) of this section.
(b) For violations after November 2, 2015: The Federal Civil
Penalties Inflation Adjustment Act, as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C.
2461 note), requires that civil monetary penalties be adjusted on an
annual basis for inflation. Pursuant to this requirement, the maximum
amounts of all civil monetary penalties under the Securities Act of
1933, the Securities Exchange Act of 1934, the Investment Company Act
of 1940, and the Investment Advisers Act of 1940, and certain penalties
under the Sarbanes-Oxley Act of 2002 will be adjusted annually for
inflation. Notice of these adjusted penalty amounts will be published
by the Commission in the Federal Register on or before January 15 of
each calendar year and will be available, along with the Commission's
prior inflation adjustments, on the Commission's Web site at https://www.sec.gov/enforce/civil-penalties-inflation-adjustments.htm. The
adjusted penalty amounts will apply to all penalties imposed after the
effective date of the adjustment (for the first day the adjustment is
effective, the prior year's penalty amounts shall apply), for
violations that occurred after November 2, 2015. The adjusted penalty
amount each year will be the larger of:
(1) The maximum penalty amount for the previous calendar year; or
(2) An amount adjusted for inflation, calculated by multiplying the
maximum penalty amount for the previous calendar year by the percentage
by which the Consumer Price Index for all Urban Consumers (CPI-U) for
the month of October preceding the current calendar year exceeds the
CPI-U for the month of October of the calendar year two years prior to
the current calendar year, adding that amount to the amount for the
previous calendar year, and rounding the total to the nearest dollar.
Table I to 201.1001--Civil Monetary Penalty Inflation Adjustments for Violations From December 10, 1996, Through November 2, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
Date of violation and corresponding penalty
-----------------------------------------------------------------------------------------
U.S. Code citation Civil monetary penalty Feb. 3, 2001- Feb. 15, 2005- Mar. 4, 2009-
description Dec. 10, 1996- Feb. 14, 2005 Mar. 3, 2009 Mar. 5, 2013 Mar. 6, 2013-
Feb. 2, 2001 \i\ \ii\ \iii\ \iv\ Nov. 2, 2015 \v\
--------------------------------------------------------------------------------------------------------------------------------------------------------
15 U.S.C. 77h-1(g) (Securities Act For natural person..... N/A N/A N/A \vi\ $7,500 $7,500
Sec. 8A(g)). For any other person... N/A N/A N/A \vi\ 75,000 80,000
For natural person/ N/A N/A N/A \vi\ 75,000 80,000
fraud.
For any other person/ N/A N/A N/A \vi\ 375,000 400,000
fraud.
For natural person/ N/A N/A N/A \vi\ 150,000 160,000
fraud/substantial
losses or risk of
losses to others or
gains to self.
For any other person/ N/A N/A N/A \vi\ 725,000 775,000
fraud/substantial
losses or risk of
losses to others or
gain to self.
15 U.S.C. 77t(d) (Securities Act Sec. For natural person..... $5,500 $6,500 $6,500 7,500 7,500
20(d)). For any other person... 55,000 60,000 65,000 75,000 80,000
For natural person/ 55,000 60,000 65,000 75,000 80,000
fraud.
For any other person/ 275,000 300,000 325,000 375,000 400,000
fraud.
For natural person/ 110,000 120,000 130,000 150,000 160,000
fraud/substantial
losses or risk of
losses to others.
For any other person/ 550,000 600,000 650,000 725,000 775,000
fraud/substantial
losses or risk of
losses to others.
15 U.S.C. 78u(d)(3) (Exchange Act For natural person..... 5,500 6,500 6,500 7,500 7,500
Sec. 21(d)(3)). For any other person... 55,000 60,000 65,000 75,000 80,000
For natural person/ 55,000 60,000 65,000 75,000 80,000
fraud.
For any other person/ 275,000 300,000 325,000 375,000 400,000
fraud.
[[Page 5372]]
For natural person/ 110,000 120,000 130,000 150,000 160,000
fraud/substantial
losses or risk of
losses to others or
gains to self.
For any other person/ 550,000 600,000 650,000 725,000 775,000
fraud/substantial
losses or risk of
losses to others or
gain to self.
15 U.S.C. 78u-1(a)(3) (Exchange Act Insider Trading-- 1,100,000 1,200,000 1,275,000 1,425,000 1,525,000
Sec. 21A(a)(3)). controlling person.
15 U.S.C. 78u-2 (Exchange Act Sec. For natural person..... 5,500 6,500 6,500 7,500 7,500
21B). For any other person... 55,000 60,000 65,000 75,000 80,000
For natural person/ 55,000 60,000 65,000 75,000 80,000
fraud.
For any other person/ 275,000 300,000 325,000 375,000 400,000
fraud.
For natural person/ 110,000 120,000 130,000 150,000 160,000
fraud/substantial
losses or risk of
losses to others.
For any other person/ 550,000 600,000 650,000 725,000 775,000
fraud/substantial
losses or risk of
losses to others.
15 U.S.C. 78ff(b) (Exchange Act Sec. Exchange Act/failure to 110 110 110 110 210
32(b)). file information
documents, reports.
15 U.S.C. 78ff(c)(1)(B) (Exchange Act Foreign Corrupt 11,000 11,000 11,000 16,000 16,000
Sec. 32(c)(1)(B)). Practices--any issuer.
15 U.S.C. 78ff(c)(2)(B) (Exchange Act Foreign Corrupt 11,000 11,000 11,000 16,000 16,000
Sec. 32(c)(2)(B)). Practices--any agent
or stockholder acting
on behalf of issuer.
15 U.S.C. 80a-9(d) (Investment For natural person..... 5,500 6,500 6,500 7,500 7,500
Company Act Sec. 9(d)). For any other person... 55,000 60,000 65,000 75,000 80,000
For natural person/ 55,000 60,000 65,000 75,000 80,000
fraud.
For any other person/ 275,000 300,000 325,000 375,000 400,000
fraud.
For natural person/ 110,000 120,000 130,000 150,000 160,000
fraud/substantial
losses or risk of
losses to others or
gains to self.
For any other person/ 550,000 600,000 650,000 725,000 775,000
fraud/substantial
losses or risk of
losses to others or
gain to self.
15 U.S.C. 80a-41(e) (Investment For natural person..... 5,500 6,500 6,500 7,500 7,500
Company Act Sec. 42(e)). For any other person... 55,000 60,000 65,000 75,000 80,000
For natural person/ 55,000 60,000 65,000 75,000 80,000
fraud.
For any other person/ 275,000 300,000 325,000 375,000 400,000
fraud.
For natural person/ 110,000 120,000 130,000 150,000 160,000
fraud/substantial
losses or risk of
losses to others.
For any other person/ 550,000 600,000 650,000 725,000 775,000
fraud/substantial
losses or risk of
losses to others.
15 U.S.C. 80b-3(i) (Investment For natural person..... 5,500 6,500 6,500 7,500 7,500
Advisers Act Sec. 203(i)). For any other person... 55,000 60,000 65,000 75,000 80,000
For natural person/ 55,000 60,000 65,000 75,000 80,000
fraud.
For any other person/ 275,000 300,000 325,000 375,000 400,000
fraud.
For natural person/ 110,000 120,000 130,000 150,000 160,000
fraud/substantial
losses or risk of
losses to others or
gains to self.
For any other person/ 550,000 600,000 650,000 725,000 775,000
fraud/substantial
losses or risk of
losses to others or
gain to self.
15 U.S.C. 80b-9(e) (Investment For natural person..... 5,500 6,500 6,500 7,500 7,500
Advisers Act Sec. 209(e)). For any other person... 55,000 60,000 65,000 75,000 80,000
For natural person/ 55,000 60,000 65,000 75,000 80,000
fraud.
For any other person/ 275,000 300,000 325,000 375,000 400,000
fraud.
For natural person/ 110,000 120,000 130,000 150,000 160,000
fraud/substantial
losses or risk of
losses to others.
For any other person/ 550,000 600,000 650,000 725,000 775,000
fraud/substantial
losses or risk of
losses to others.
15 U.S.C. 7215(c)(4)(D)(i) (Sarbanes- For natural person..... N/A \vii\ 100,000 110,000 120,000 130,000
Oxley Act Sec. 105(c)(4)(D)(i)). For any other person... N/A \vii\ 2,000,000 2,100,000 2,375,000 2,525,000
[[Page 5373]]
15 U.S.C. 7215(c)(4)(D)(ii) (Sarbanes- For natural person..... N/A \vii\ 750,000 800,000 900,000 950,000
Oxley Act Sec. 105(c)(4)(D)(ii)). For any other person... N/A \vii\ 15,000,000 15,825,000 17,800,000 18,925,000
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\i\ Release Nos. 33-7361, 34-37912, IA-1596, IC-22310, dated November 1, 1996 (effective December 9, 1996), previously found at 17 CFR 201.1001 and
Table I to Subpart E of Part 201.
\ii\ Release Nos. 33-7946, 34-43897, IA-1921, IC-24846, dated January 31, 2001 (effective February 2, 2001), previously found at 17 CFR 201.1002 and
Table II to Subpart E of Part 201.
\iii\ Release Nos. 33-8530, 34-51136, IA-2348, IC-26748, dated February 9, 2005 (effective February 14, 2005), previously found at 17 CFR 201.1003 and
Table III to Subpart E of Part 201.
\iv\ Release Nos. 33-9009, 34-59449, IA-2845, IC-28635, dated February 25, 2009 (effective March 3, 2009), previously found at 17 CFR 201.1004 and Table
IV to Subpart E of Part 201.
\v\ Release Nos. 33-9387, 34-68994, IA-3557, IC-30408, dated February 27, 2013 (effective March 5, 2013), previously found at 17 CFR 201.1005 and Table
V to Subpart E of Part 201.
\vi\ Effective from July 21, 2010 (enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. 111-203), through March 5, 2013.
\vii\ Effective from July 30, 2002 (enactment of the Sarbanes-Oxley Act of 2002, Pub. L. 107-204), through February 14, 2005.
By the Commission.
January 6, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017-00421 Filed 1-13-17; 8:45 am]
BILLING CODE 8011-01-P
