Order Regarding Review of FASB Accounting Support Fee for 2022 Under Section 109 of the Sarbanes-Oxley Act of 2002, 8062 [2022-02998]
Download as PDF
<![CDATA[
8062
Federal Register / Vol. 87, No. 29 / Friday, February 11, 2022 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Securities Act of 1933 Release No. 11027/
February 8, 2022; Securities Exchange Act
of 1934 Release No. 94187/February 8, 2022]
Order Regarding Review of FASB
Accounting Support Fee for 2022
Under Section 109 of the SarbanesOxley Act of 2002
The Sarbanes-Oxley Act of 2002
(‘‘SOX’’ or the ‘‘Act’’) provides that the
Securities and Exchange Commission
(the ‘‘Commission’’) may recognize, as
generally accepted for purposes of the
securities laws, any accounting
principles established by a standardsetting body that meets certain criteria.1
Section 109 of SOX provides that all of
the budget of such a standard-setting
body shall be payable from an annual
accounting support fee assessed and
collected against each issuer, as may be
necessary or appropriate to pay for the
budget and provide for the expenses of
the standard-setting body, and to
provide for an independent, stable
source of funding, subject to review by
the Commission. Under Section 109(f)
of the Act, the amount of fees collected
for a fiscal year shall not exceed the
‘‘recoverable budget expenses’’ of the
standard-setting body. Section 109(i) of
SOX amends Section 13(b)(2) of the
Securities Exchange Act of 1934 to
require issuers to pay the allocable share
of a reasonable annual accounting
support fee or fees, determined in
accordance with Section 109 of the Act.
On April 25, 2003, the Commission
issued a policy statement concluding
that the Financial Accounting Standards
Board (‘‘FASB’’) and its parent
organization, the Financial Accounting
Foundation (‘‘FAF’’), satisfied the
criteria for an accounting standardsetting body under the Act, and
recognizing the FASB’s financial
accounting and reporting standards as
‘‘generally accepted’’ under Section 108
of the Act.2 Accordingly, the
Commission undertook a review of the
FASB’s accounting support fee for
calendar year 2022.3 In connection with
its review, the Commission also
reviewed the budget for the FAF and the
FASB for calendar year 2022.
Section 109 of SOX provides that, in
addition to the accounting support fee,
By the Commission.
Vanessa A. Countryman,
Secretary.
17:29 Feb 10, 2022
Jkt 256001
[FR Doc. 2022–02998 Filed 2–10–22; 8:45 am]
BILLING CODE 8011–01–P
4 See OMB Report Pursuant to the Sequestration
Transparency Act of 2012, available at https://
www.whitehouse.gov/wp-content/uploads/2020/02/
JC-sequestration_report_FY21_2-10-20.pdf. The
sequestration percentages calculated for FY 2021
will be applied in each of the fiscal years from 2022
to 2029.
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
[Release No. 34–94168; File No. SR–NSCC–
2021–010]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Designation of
Longer Period for Commission Action
on Proceedings To Determine Whether
To Approve or Disapprove a Proposed
Rule Change To Establish the
Securities Financing Transaction
Clearing Service and Make Other
Changes
February 7, 2022.
On July 22, 2021, National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–NSCC–2021–010
(‘‘Proposed Rule Change’’) pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 The Proposed Rule
Change was published for comment in
the Federal Register on August 12,
2021.3 The Commission received
comment letters on the Proposed Rule
Change.4
On September 2, 2021, pursuant to
Section 19(b)(2) of the Act,5 the
Commission designated a longer period
within which to approve, disapprove, or
institute proceedings to determine
whether to approve or disapprove the
Proposed Rule Change.6 On November
5, 2021, the Commission instituted
proceedings pursuant to Section
19(b)(2)(B) of the Act,7 to determine
whether to approve or disapprove the
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 92570
(August 5, 2021), 86 FR 44482 (August 12, 2021)
(SR–NSCC–2021–010) (‘‘Notice’’). NSCC also filed
the proposal contained in the Proposed Rule
Change as advance notice SR–NSCC–2021–803
(‘‘Advance Notice’’) with the Commission pursuant
to Section 806(e)(1) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act entitled the
Payment, Clearing, and Settlement Supervision Act
of 2010 (‘‘Clearing Supervision Act’’). 12 U.S.C.
5465(e)(1); 17 CFR 240.19b–4(n)(1)(i). Notice of
filing of the Advance Notice was published for
comment in the Federal Register on August 12,
2021. Securities Exchange Act Release No. 92568
(August 5, 2021), 86 FR 44530 (August 12, 2021)
(SR–NSCC–2021–803). The proposal contained in
the Proposed Rule Change and the Advance Notice
shall not take effect until all regulatory actions
required with respect to the proposal are
completed.
4 Comment letters are available at https://
www.sec.gov/comments/sr-nscc-2021-010/
srnscc2021010.htm.
5 15 U.S.C. 78s(b)(2).
6 Securities Exchange Act Release No. 92860
(September 2, 2021), 86 Fed. Reg. 50569 (September
9, 2021) (SR–NSCC–2021–010).
7 15 U.S.C. 78s(b)(2)(B).
2 17
2 See
VerDate Sep<11>2014
SECURITIES AND EXCHANGE
COMMISSION
1 15
1 See
lotter on DSK11XQN23PROD with NOTICES1
15 U.S.C. 7201 et seq.
Commission Statement of Policy
Reaffirming the Status of the FASB as a Designated
Private-Sector Standard Setter, Release No. 33–8221
(April 25, 2003) [68 FR 23333 (May 1, 2003)].
3 The Financial Accounting Foundation’s Board
of Trustees approved the FASB’s budget on
November 16, 2021. The FAF submitted the
approved budget to the Commission on November
22, 2021.
the standard-setting body can have
additional sources of revenue for its
activities, such as earnings from sales of
publications, provided that each
additional source of revenue shall not
jeopardize, in the judgment of the
Commission, the actual or perceived
independence of the standard setter. In
this regard, the Commission also
considered the interrelation of the
operating budgets of the FAF, the FASB,
and the Governmental Accounting
Standards Board (‘‘GASB’’), the FASB’s
sister organization, which sets
accounting standards used by state and
local government entities. The
Commission has been advised by the
FAF that neither the FAF, the FASB, nor
the GASB accept contributions from the
accounting profession.
The Commission understands that the
Office of Management and Budget
(‘‘OMB’’) has determined the FASB’s
spending of the 2022 accounting
support fee is sequestrable under the
Budget Control Act of 2011.4 So long as
sequestration is applicable, we
anticipate that the FAF will work with
the Commission and Commission staff
as appropriate regarding its
implementation of sequestration.
After its review, the Commission
determined that the 2022 annual
accounting support fee for the FASB is
consistent with Section 109 of the Act.
Accordingly,
It is ordered, pursuant to Section 109
of SOX, that the FASB may act in
accordance with this determination of
the Commission.
E:\FR\FM\11FEN1.SGM
11FEN1
]]>Agencies
[Federal Register Volume 87, Number 29 (Friday, February 11, 2022)]
[Notices]
[Page 8062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02998]
[[Page 8062]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Securities Act of 1933 Release No. 11027/February 8, 2022; Securities
Exchange Act of 1934 Release No. 94187/February 8, 2022]
Order Regarding Review of FASB Accounting Support Fee for 2022
Under Section 109 of the Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 (``SOX'' or the ``Act'') provides
that the Securities and Exchange Commission (the ``Commission'') may
recognize, as generally accepted for purposes of the securities laws,
any accounting principles established by a standard-setting body that
meets certain criteria.\1\ Section 109 of SOX provides that all of the
budget of such a standard-setting body shall be payable from an annual
accounting support fee assessed and collected against each issuer, as
may be necessary or appropriate to pay for the budget and provide for
the expenses of the standard-setting body, and to provide for an
independent, stable source of funding, subject to review by the
Commission. Under Section 109(f) of the Act, the amount of fees
collected for a fiscal year shall not exceed the ``recoverable budget
expenses'' of the standard-setting body. Section 109(i) of SOX amends
Section 13(b)(2) of the Securities Exchange Act of 1934 to require
issuers to pay the allocable share of a reasonable annual accounting
support fee or fees, determined in accordance with Section 109 of the
Act.
---------------------------------------------------------------------------
\1\ See 15 U.S.C. 7201 et seq.
---------------------------------------------------------------------------
On April 25, 2003, the Commission issued a policy statement
concluding that the Financial Accounting Standards Board (``FASB'') and
its parent organization, the Financial Accounting Foundation (``FAF''),
satisfied the criteria for an accounting standard-setting body under
the Act, and recognizing the FASB's financial accounting and reporting
standards as ``generally accepted'' under Section 108 of the Act.\2\
Accordingly, the Commission undertook a review of the FASB's accounting
support fee for calendar year 2022.\3\ In connection with its review,
the Commission also reviewed the budget for the FAF and the FASB for
calendar year 2022.
---------------------------------------------------------------------------
\2\ See Commission Statement of Policy Reaffirming the Status of
the FASB as a Designated Private-Sector Standard Setter, Release No.
33-8221 (April 25, 2003) [68 FR 23333 (May 1, 2003)].
\3\ The Financial Accounting Foundation's Board of Trustees
approved the FASB's budget on November 16, 2021. The FAF submitted
the approved budget to the Commission on November 22, 2021.
---------------------------------------------------------------------------
Section 109 of SOX provides that, in addition to the accounting
support fee, the standard-setting body can have additional sources of
revenue for its activities, such as earnings from sales of
publications, provided that each additional source of revenue shall not
jeopardize, in the judgment of the Commission, the actual or perceived
independence of the standard setter. In this regard, the Commission
also considered the interrelation of the operating budgets of the FAF,
the FASB, and the Governmental Accounting Standards Board (``GASB''),
the FASB's sister organization, which sets accounting standards used by
state and local government entities. The Commission has been advised by
the FAF that neither the FAF, the FASB, nor the GASB accept
contributions from the accounting profession.
The Commission understands that the Office of Management and Budget
(``OMB'') has determined the FASB's spending of the 2022 accounting
support fee is sequestrable under the Budget Control Act of 2011.\4\ So
long as sequestration is applicable, we anticipate that the FAF will
work with the Commission and Commission staff as appropriate regarding
its implementation of sequestration.
---------------------------------------------------------------------------
\4\ See OMB Report Pursuant to the Sequestration Transparency
Act of 2012, available at https://www.whitehouse.gov/wp-content/uploads/2020/02/JC-sequestration_report_FY21_2-10-20.pdf. The
sequestration percentages calculated for FY 2021 will be applied in
each of the fiscal years from 2022 to 2029.
---------------------------------------------------------------------------
After its review, the Commission determined that the 2022 annual
accounting support fee for the FASB is consistent with Section 109 of
the Act. Accordingly,
It is ordered, pursuant to Section 109 of SOX, that the FASB may
act in accordance with this determination of the Commission.
By the Commission.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2022-02998 Filed 2-10-22; 8:45 am]
BILLING CODE 8011-01-P
