Adjustments to Civil Monetary Penalty Amounts, 1614-1616 [2023-00370]
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Federal Register / Vol. 88, No. 7 / Wednesday, January 11, 2023 / Notices
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ADAMS accession No.
License Renewal Application (Initial), dated July 9, 2021 .............................................................................................
Request for Supplemental Information, dated September 9, 2021 ...............................................................................
ISU Response to Request for Supplemental Information, Dated December 6, 2021 ...................................................
Request for Additional Information, dated February 7, 2022 .........................................................................................
Acceptance of ISU’s License Renewal Application, dated January 20, 2022 ...............................................................
ISU Response Request for Additional Information, dated March 4, 2022 .....................................................................
NRC Request for Clarification of Responses to the Request for Additional Information, dated March 21, 2022 ........
ISU Response to Request for Clarification of Responses to the Request for Additional Information, dated March
24, 2022.
ISU’s Revised License Application, dated March 25, 2022 ...........................................................................................
Letter—SNM–1373 License Renewal Transmittal, dated January 6, 2023 ...................................................................
SER on ISU License Renewal Application, dated January 6, 2023 ..............................................................................
October 2022 Renewed SNM–1373, dated January 6, 2023 ........................................................................................
SER on ISU License Renewal Application .....................................................................................................................
(non-public, withheld pursuant to 10 CFR 2.390) ..........................................................................................................
October 2022 Renewed SNM–1373 Sensitive Conditions (non-public, withheld pursuant to 10 CFR 2.390) .............
Dated: January 6, 2023.
For the Nuclear Regulatory Commission.
Carrie M. Safford,
Deputy Director Division of Fuel
Management, Office of Nuclear Material
Safety and Safeguards.
[FR Doc. 2023–00406 Filed 1–10–23; 8:45 am]
BILLING CODE 7590–01–P
[Release Nos. 33–11143; 34–96605; IA–
6212; IC–34797]
Adjustments to Civil Monetary Penalty
Amounts
Securities and Exchange
Commission.
ACTION: Notice of annual inflation
adjustment of civil monetary penalties.
AGENCY:
The Securities and Exchange
Commission (the ‘‘Commission’’) is
publishing this notice (the ‘‘Notice’’)
pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (the ‘‘2015 Act’’). This Act
requires all agencies to annually adjust
for inflation the civil monetary penalties
that can be imposed under the statutes
administered by the agency and publish
the adjusted amounts in the Federal
Register. This Notice sets forth the
annual inflation adjustment of the
maximum amount of civil monetary
penalties (‘‘CMPs’’) administered by the
Commission under the Securities Act of
1933, the Securities Exchange Act of
1934 (the ‘‘Exchange Act’’), the
Investment Company Act of 1940, the
Investment Advisers Act of 1940, and
certain penalties under the SarbanesOxley Act of 2002. These amounts are
effective beginning on January 15, 2023,
and will apply to all penalties imposed
after that date for violations of the
aforementioned statutes that occurred
after November 2, 2015.
lotter on DSK11XQN23PROD with NOTICES1
SUMMARY:
17:17 Jan 10, 2023
Stephen M. Ng, Senior Special Counsel,
Office of the General Counsel, at (202)
551–7957, or Hannah W. Riedel, Senior
Counsel, Office of the General Counsel,
at (202) 551–7918.
SUPPLEMENTARY INFORMATION:
I. Background
SECURITIES AND EXCHANGE
COMMISSION
VerDate Sep<11>2014
FOR FURTHER INFORMATION CONTACT:
Jkt 259001
This Notice is being published
pursuant to the 2015 Act,1 which
amended the Federal Civil Penalties
Inflation Adjustment Act of 1990 (the
‘‘Inflation Adjustment Act’’).2 The
Inflation Adjustment Act previously had
been amended by the Debt Collection
Improvement Act of 1996 (the ‘‘DCIA’’) 3
to require that each federal agency adopt
regulations at least once every four years
that adjust for inflation the CMPs that
can be imposed under the statutes
administered by the agency. Pursuant to
this requirement, 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, section
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 (61 FR 57773
(Nov. 8, 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
(66 FR 8761 (Feb. 2, 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 (70 FR 7606 (Feb. 14, 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 (74 FR 9159 (Mar.
3, 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,
PO 00000
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ML21351A166 (package).
ML22033A444.
ML22018A285.
ML22075A215.
ML22081A296.
ML22091A298.
ML22306A112.
ML22147A069.
ML22147A070.
ML22147A071.
ML22147A072.
ML22147A073.
The 2015 Act replaces the inflation
adjustment formula prescribed in the
DCIA with a new formula for calculating
the inflation-adjusted amount of CMPs.
The 2015 Act requires that agencies use
this new formula to re-calculate the
inflation-adjusted amounts of the
penalties they administer on an annual
basis and publish these new amounts in
the Federal Register by January 15 of
each year.5 The Commission previously
published the first annual adjustment
required by the 2015 Act on January 6,
2017 (the ‘‘2017 Adjustment’’).6 As part
of the 2017 Adjustment, the
Commission promulgated 17 CFR
201.1001(a) and table I to 17 CFR
201.1001, which lists the penalty
amounts for all violations that occurred
on or before November 2, 2015. For
violations occurring after November 2,
2015, § 201.1001(b) provides that the
applicable penalty amounts will be
adjusted annually based on the formula
set forth in the 2015 Act. Section
201.1001(b) further provides that these
adjusted amounts will be published in
the Federal Register and on the
Commission’s website. The Commission
published the two most recent annual
adjustments on January 8, 2021 (‘‘2021
Adjustment’’) 7 and January 6, 2022
(‘‘2022 Adjustment’’).8
A CMP is defined in relevant part as
any penalty, fine, or other sanction that:
IA–3557, IC–30408, dated February 27, 2013 (78 FR
14179 (Mar. 5, 2013)) (effective March 5, 2013),
previously found at 17 CFR 201.1005 and table V
to subpart E of part 201. The penalty amounts
contained in these releases have now been
consolidated into table I to 17 CFR 201.1001.
5 28 U.S.C. 2461 note sec. 4.
6 Release Nos. 33–10276; 34–79749; IA–4599; IC–
32414 (82 FR 5367 (Jan. 18, 2017)) (effective Jan. 18,
2017).
7 Release Nos. 33–10918; 34–90874; IA–5664; IC–
34166 (86 FR 2716 (Jan. 13, 2021)) (effective Jan. 15,
2021).
8 Release Nos. 33–11021; 34–93925; IA–5938; IC–
34466 (87 FR 1808 (Jan. 12, 2022)) (effective Jan. 15,
2022).
E:\FR\FM\11JAN1.SGM
11JAN1
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Federal Register / Vol. 88, No. 7 / Wednesday, January 11, 2023 / Notices
(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, the
Exchange Act, the Investment Company
Act, and the Investment Advisers Act.
In addition, the Sarbanes-Oxley Act
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
II. Adjusting the Commission’s Penalty
Amounts for Inflation
This Notice sets forth the annual
inflation adjustment required by the
2015 Act for all CMPs under the
Securities Act, the Exchange Act, the
Investment Company Act, and the
Investment Advisers Act, and certain
civil monetary penalties under the
Sarbanes-Oxley Act.
Pursuant to the 2015 Act, the penalty
amounts in the 2023 Adjustment are
adjusted for inflation by increasing them
by the percentage change between the
Consumer Price Index for all Urban
Consumers (‘‘CPI–U’’) for October 2021
and the October 2022 CPI–U.12 The
Office of Management and Budget
(‘‘OMB’’) has provided its calculation of
this multiplier (the ‘‘CPI–U Multiplier’’)
to agencies.13 The new penalty amounts
are determined by multiplying the
amounts in the 2022 Adjustment by the
CPI–U Multiplier and then rounding to
the nearest dollar.
For example, the CMP for certain
insider trading violations by controlling
persons under Exchange Act Section
21A(a)(3) 14 was readjusted for inflation
as part of the 2022 Adjustment to
$2,301,065. To determine the new CMP
under this provision, the Commission
multiplies this amount by the CPI–U
Multiplier of 1.07745, and rounds to the
nearest dollar. Thus, the new CMP for
Exchange Act section 21A(a)(3) is
$2,479,282.
Below is the Commission’s
calculation of the new penalty amounts
for the penalties it administers:
2022
Adjustment
penalty
amounts
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 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.
Insider Trading—controlling person .....................................
15 U.S.C. 77t(d) (Securities Act sec.
20(d)).
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)).
lotter on DSK11XQN23PROD with NOTICES1
encompasses such civil monetary
penalties.11
9 28
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
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 Exchange Act. As a result, penalties
10 15
VerDate Sep<11>2014
17:17 Jan 10, 2023
Jkt 259001
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 28 U.S.C. 2461 note Sec. 5.
13 Office of Management and Budget,
Implementation of Penalty Inflation Adjustments
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
CPI–U
multiplier
2023
Adjusted
penalty
amounts
$9,484
94,847
94,847
474,233
189,693
1.07745
1.07745
1.07745
1.07745
1.07745
$10,219
102,193
102,193
510,962
204,385
916,850
1.07745
987,860
10,360
103,591
103,591
517,955
207,183
1.07745
1.07745
1.07745
1.07745
1.07745
11,162
111,614
111,614
558,071
223,229
1,035,909
1.07745
1,116,140
10,360
103,591
103,591
517,955
207,183
1.07745
1.07745
1.07745
1.07745
1.07745
11,162
111,614
111,614
558,071
223,229
1,035,909
1.07745
1,116,140
2,301,065
1.07745
2,479,282
10,360
103,591
103,591
517,955
207,183
1.07745
1.07745
1.07745
1.07745
1.07745
11,162
111,614
111,614
558,071
223,229
1,035,909
1.07745
1,116,140
612
1.07745
659
for 2023, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015
(December 15, 2022), available at https://
www.whitehouse.gov/wp-content/uploads/2022/12/
M-23-05-CMP-CMP-Guidance.pdf. This multiplier
represents the percentage increase between the
October 2021 CPI–U and the October 2022 CPI–U,
plus 1.
14 15 U.S.C. 78u–1(a)(3).
E:\FR\FM\11JAN1.SGM
11JAN1
1616
Federal Register / Vol. 88, No. 7 / Wednesday, January 11, 2023 / Notices
2023
Adjusted
penalty
amounts
CPI–U
multiplier
Civil monetary penalty description
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)).
Foreign Corrupt Practices—any issuer ................................
23,011
1.07745
24,793
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 ............................................................
23,011
1.07745
24,793
10,360
103,591
103,591
517,955
207,183
1.07745
1.07745
1.07745
1.07745
1.07745
11,162
111,614
111,614
558,071
223,229
1,035,909
1.07745
1,116,140
10,360
103,591
103,591
517,955
207,183
1.07745
1.07745
1.07745
1.07745
1.07745
11,162
111,614
111,614
558,071
223,229
1,035,909
1.07745
1,116,140
10,360
103,591
103,591
517,955
207,183
1.07745
1.07745
1.07745
1.07745
1.07745
11,162
111,614
111,614
558,071
223,229
1,035,909
1.07745
1,116,140
10,360
103,591
103,591
517,955
207,183
1.07745
1.07745
1.07745
1.07745
1.07745
11,162
111,614
111,614
558,071
223,229
1,035,909
1.07745
1,116,140
152,557
3,051,164
1,144,186
22,883,723
1.07745
1.07745
1.07745
1.07745
164,373
3,287,477
1,232,803
24,656,067
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)).
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)).
Pursuant to the 2015 Act and 17 CFR
201.1001, the adjusted penalty amounts
in this Notice (and all penalty
adjustments performed pursuant to the
2015 Act) apply to penalties imposed
after the date the adjustment is effective
for violations that occurred after
November 2, 2015, the 2015 Act’s
enactment date. These penalty amounts
supersede the amounts in the 2022
Adjustment.15 For violations that
occurred on or before November 2,
lotter on DSK11XQN23PROD with NOTICES1
2022
Adjustment
penalty
amounts
U.S. Code citation
15 The penalty amounts in this Notice are being
published in the Federal Register and will not be
added to the Code of Federal Regulations in
accordance with the 2015 Act and 17 CFR
201.1001(b). See 28 U.S.C. 2461 note sec. 4(a)(2); 17
CFR 201.1001(b). In addition to being published in
the Federal Register, the penalty amounts in this
Notice will be made available on the Commission’s
website at https://www.sec.gov/enforce/civilpenalties-inflation-adjustments.htm, as detailed in
17 CFR 201.1001(b). This website also lists the
penalty amounts for violations that occurred on or
before November 2, 2015.
VerDate Sep<11>2014
17:17 Jan 10, 2023
Jkt 259001
2015, the penalty amounts in table I to
17 CFR 201.1001 continue to apply.16
III. Small Business Regulatory
Enforcement Fairness Act Status
Dated: January 6, 2023.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2023–00370 Filed 1–10–23; 8:45 am]
BILLING CODE 8011–01–P
OMB has concurred in our
recommendation that this Notice is not
a ‘‘major rule’’ as defined by section 251
of the Small Business Regulatory
Enforcement Fairness Act (‘‘SBREFA’’),
5 U.S.C. 804(2), because (1) it will not
have an annual effect of $100 million
dollars or more on the economy, (2) it
does not present a major increase in
prices for consumers or individual
industries, and (3) it does not have
significant adverse effects on
competition, investment, or
innovation.17
By the Commission.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96601; File No. SR–
NASDAQ–2022–077]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Amend Rule 4702 To Establish New
‘‘Contra Midpoint Only’’ and ‘‘Contra
Midpoint Only With Post-Only’’ Order
Types
January 5, 2023
16 17
CFR 201.1001(a).
17 See generally SBREFA, Public Law 104–121
(1996).
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
E:\FR\FM\11JAN1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 7 (Wednesday, January 11, 2023)]
[Notices]
[Pages 1614-1616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00370]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release Nos. 33-11143; 34-96605; IA-6212; IC-34797]
Adjustments to Civil Monetary Penalty Amounts
AGENCY: Securities and Exchange Commission.
ACTION: Notice of annual inflation adjustment of civil monetary
penalties.
-----------------------------------------------------------------------
SUMMARY: The Securities and Exchange Commission (the ``Commission'') is
publishing this notice (the ``Notice'') pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (the ``2015
Act''). This Act requires all agencies to annually adjust for inflation
the civil monetary penalties that can be imposed under the statutes
administered by the agency and publish the adjusted amounts in the
Federal Register. This Notice sets forth the annual inflation
adjustment of the maximum amount of civil monetary penalties (``CMPs'')
administered by the Commission under the Securities Act of 1933, the
Securities Exchange Act of 1934 (the ``Exchange Act''), the Investment
Company Act of 1940, the Investment Advisers Act of 1940, and certain
penalties under the Sarbanes-Oxley Act of 2002. These amounts are
effective beginning on January 15, 2023, and will apply to all
penalties imposed after that date for violations of the aforementioned
statutes that occurred after November 2, 2015.
FOR FURTHER INFORMATION CONTACT: Stephen M. Ng, Senior Special Counsel,
Office of the General Counsel, at (202) 551-7957, or Hannah W. Riedel,
Senior Counsel, Office of the General Counsel, at (202) 551-7918.
SUPPLEMENTARY INFORMATION:
I. Background
This Notice is being published pursuant to the 2015 Act,\1\ which
amended the Federal Civil Penalties Inflation Adjustment Act of 1990
(the ``Inflation Adjustment Act'').\2\ The Inflation Adjustment Act
previously had been amended by the Debt Collection Improvement Act of
1996 (the ``DCIA'') \3\ to require that each federal agency adopt
regulations at least once every four years that adjust for inflation
the CMPs that can be imposed under the statutes administered by the
agency. Pursuant to this requirement, 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, section 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 (61 FR 57773 (Nov. 8, 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 (66 FR 8761 (Feb. 2, 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 (70 FR 7606 (Feb. 14, 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 (74 FR 9159 (Mar.
3, 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 (78 FR
14179 (Mar. 5, 2013)) (effective March 5, 2013), previously found at
17 CFR 201.1005 and table V to subpart E of part 201. The penalty
amounts contained in these releases have now been consolidated into
table I to 17 CFR 201.1001.
---------------------------------------------------------------------------
The 2015 Act replaces the inflation adjustment formula prescribed
in the DCIA with a new formula for calculating the inflation-adjusted
amount of CMPs. The 2015 Act requires that agencies use this new
formula to re-calculate the inflation-adjusted amounts of the penalties
they administer on an annual basis and publish these new amounts in the
Federal Register by January 15 of each year.\5\ The Commission
previously published the first annual adjustment required by the 2015
Act on January 6, 2017 (the ``2017 Adjustment'').\6\ As part of the
2017 Adjustment, the Commission promulgated 17 CFR 201.1001(a) and
table I to 17 CFR 201.1001, which lists the penalty amounts for all
violations that occurred on or before November 2, 2015. For violations
occurring after November 2, 2015, Sec. 201.1001(b) provides that the
applicable penalty amounts will be adjusted annually based on the
formula set forth in the 2015 Act. Section 201.1001(b) further provides
that these adjusted amounts will be published in the Federal Register
and on the Commission's website. The Commission published the two most
recent annual adjustments on January 8, 2021 (``2021 Adjustment'') \7\
and January 6, 2022 (``2022 Adjustment'').\8\
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\5\ 28 U.S.C. 2461 note sec. 4.
\6\ Release Nos. 33-10276; 34-79749; IA-4599; IC-32414 (82 FR
5367 (Jan. 18, 2017)) (effective Jan. 18, 2017).
\7\ Release Nos. 33-10918; 34-90874; IA-5664; IC-34166 (86 FR
2716 (Jan. 13, 2021)) (effective Jan. 15, 2021).
\8\ Release Nos. 33-11021; 34-93925; IA-5938; IC-34466 (87 FR
1808 (Jan. 12, 2022)) (effective Jan. 15, 2022).
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A CMP is defined in relevant part as any penalty, fine, or other
sanction that:
[[Page 1615]]
(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, the Exchange Act, the Investment Company Act, and the
Investment Advisers Act. In addition, the Sarbanes-Oxley Act 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 Exchange Act. 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 Notice sets forth the annual inflation adjustment required by
the 2015 Act for all CMPs under the Securities Act, the Exchange Act,
the Investment Company Act, and the Investment Advisers Act, and
certain civil monetary penalties under the Sarbanes-Oxley Act.
Pursuant to the 2015 Act, the penalty amounts in the 2023
Adjustment are adjusted for inflation by increasing them by the
percentage change between the Consumer Price Index for all Urban
Consumers (``CPI-U'') for October 2021 and the October 2022 CPI-U.\12\
The Office of Management and Budget (``OMB'') has provided its
calculation of this multiplier (the ``CPI-U Multiplier'') to
agencies.\13\ The new penalty amounts are determined by multiplying the
amounts in the 2022 Adjustment by the CPI-U Multiplier and then
rounding to the nearest dollar.
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\12\ 28 U.S.C. 2461 note Sec. 5.
\13\ Office of Management and Budget, Implementation of Penalty
Inflation Adjustments for 2023, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015
(December 15, 2022), available at https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-05-CMP-CMP-Guidance.pdf. This
multiplier represents the percentage increase between the October
2021 CPI-U and the October 2022 CPI-U, plus 1.
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For example, the CMP for certain insider trading violations by
controlling persons under Exchange Act Section 21A(a)(3) \14\ was
readjusted for inflation as part of the 2022 Adjustment to $2,301,065.
To determine the new CMP under this provision, the Commission
multiplies this amount by the CPI-U Multiplier of 1.07745, and rounds
to the nearest dollar. Thus, the new CMP for Exchange Act section
21A(a)(3) is $2,479,282.
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\14\ 15 U.S.C. 78u-1(a)(3).
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Below is the Commission's calculation of the new penalty amounts
for the penalties it administers:
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2022 2023
Civil monetary penalty Adjustment CPI-U Adjusted
U.S. Code citation description penalty multiplier penalty
amounts amounts
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15 U.S.C. 77h-1(g) (Securities Act sec. For natural person........... $9,484 1.07745 $10,219
8A(g)). For any other person......... 94,847 1.07745 102,193
For natural person/fraud..... 94,847 1.07745 102,193
For any other person/fraud... 474,233 1.07745 510,962
For natural person/fraud/ 189,693 1.07745 204,385
substantial losses or risk
of losses to others or gains
to self.
For any other person/fraud/ 916,850 1.07745 987,860
substantial losses or risk
of losses to others or gain
to self.
15 U.S.C. 77t(d) (Securities Act sec. For natural person........... 10,360 1.07745 11,162
20(d)). For any other person......... 103,591 1.07745 111,614
For natural person/fraud..... 103,591 1.07745 111,614
For any other person/fraud... 517,955 1.07745 558,071
For natural person/fraud/ 207,183 1.07745 223,229
substantial losses or risk
of losses to others.
For any other person/fraud/ 1,035,909 1.07745 1,116,140
substantial losses or risk
of losses to others.
15 U.S.C. 78u(d)(3) (Exchange Act sec. For natural person........... 10,360 1.07745 11,162
21(d)(3)). For any other person......... 103,591 1.07745 111,614
For natural person/fraud..... 103,591 1.07745 111,614
For any other person/fraud... 517,955 1.07745 558,071
For natural person/fraud/ 207,183 1.07745 223,229
substantial losses or risk
of losses to others or gains
to self.
For any other person/fraud/ 1,035,909 1.07745 1,116,140
substantial losses or risk
of losses to others or gain
to self.
15 U.S.C. 78u-1(a)(3) (Exchange Act sec. Insider Trading--controlling 2,301,065 1.07745 2,479,282
21A(a)(3)). person.
15 U.S.C. 78u-2 (Exchange Act sec. 21B)... For natural person........... 10,360 1.07745 11,162
For any other person......... 103,591 1.07745 111,614
For natural person/fraud..... 103,591 1.07745 111,614
For any other person/fraud... 517,955 1.07745 558,071
For natural person/fraud/ 207,183 1.07745 223,229
substantial losses or risk
of losses to others.
For any other person/fraud/ 1,035,909 1.07745 1,116,140
substantial losses or risk
of losses to others.
15 U.S.C. 78ff(b) (Exchange Act sec. Exchange Act/failure to file 612 1.07745 659
32(b)). information documents,
reports.
[[Page 1616]]
15 U.S.C. 78ff(c)(1)(B) (Exchange Act sec. Foreign Corrupt Practices-- 23,011 1.07745 24,793
32(c)(1)(B)). any issuer.
15 U.S.C. 78ff(c)(2)(B) (Exchange Act sec. Foreign Corrupt Practices-- 23,011 1.07745 24,793
32(c)(2)(B)). any agent or stockholder
acting on behalf of issuer.
15 U.S.C. 80a-9(d) (Investment Company Act For natural person........... 10,360 1.07745 11,162
sec. 9(d)). For any other person......... 103,591 1.07745 111,614
For natural person/fraud..... 103,591 1.07745 111,614
For any other person/fraud... 517,955 1.07745 558,071
For natural person/fraud/ 207,183 1.07745 223,229
substantial losses or risk
of losses to others or gains
to self.
For any other person/fraud/ 1,035,909 1.07745 1,116,140
substantial losses or risk
of losses to others or gain
to self.
15 U.S.C. 80a-41(e) (Investment Company For natural person........... 10,360 1.07745 11,162
Act sec. 42(e)). For any other person......... 103,591 1.07745 111,614
For natural person/fraud..... 103,591 1.07745 111,614
For any other person/fraud... 517,955 1.07745 558,071
For natural person/fraud/ 207,183 1.07745 223,229
substantial losses or risk
of losses to others.
For any other person/fraud/ 1,035,909 1.07745 1,116,140
substantial losses or risk
of losses to others.
15 U.S.C. 80b-3(i) (Investment Advisers For natural person........... 10,360 1.07745 11,162
Act sec. 203(i)). For any other person......... 103,591 1.07745 111,614
For natural person/fraud..... 103,591 1.07745 111,614
For any other person/fraud... 517,955 1.07745 558,071
For natural person/fraud/ 207,183 1.07745 223,229
substantial losses or risk
of losses to others or gains
to self.
For any other person/fraud/ 1,035,909 1.07745 1,116,140
substantial losses or risk
of losses to others or gain
to self.
15 U.S.C. 80b-9(e) (Investment Advisers For natural person........... 10,360 1.07745 11,162
Act sec. 209(e)). For any other person......... 103,591 1.07745 111,614
For natural person/fraud..... 103,591 1.07745 111,614
For any other person/fraud... 517,955 1.07745 558,071
For natural person/fraud/ 207,183 1.07745 223,229
substantial losses or risk
of losses to others.
For any other person/fraud/ 1,035,909 1.07745 1,116,140
substantial losses or risk
of losses to others.
15 U.S.C. 7215(c)(4)(D)(i) (Sarbanes-Oxley For natural person........... 152,557 1.07745 164,373
Act sec. 105(c)(4)(D)(i)). For any other person......... 3,051,164 1.07745 3,287,477
15 U.S.C. 7215(c)(4)(D)(ii) (Sarbanes- For natural person........... 1,144,186 1.07745 1,232,803
Oxley Act sec. 105(c)(4)(D)(ii)). For any other person......... 22,883,723 1.07745 24,656,067
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Pursuant to the 2015 Act and 17 CFR 201.1001, the adjusted penalty
amounts in this Notice (and all penalty adjustments performed pursuant
to the 2015 Act) apply to penalties imposed after the date the
adjustment is effective for violations that occurred after November 2,
2015, the 2015 Act's enactment date. These penalty amounts supersede
the amounts in the 2022 Adjustment.\15\ For violations that occurred on
or before November 2, 2015, the penalty amounts in table I to 17 CFR
201.1001 continue to apply.\16\
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\15\ The penalty amounts in this Notice are being published in
the Federal Register and will not be added to the Code of Federal
Regulations in accordance with the 2015 Act and 17 CFR 201.1001(b).
See 28 U.S.C. 2461 note sec. 4(a)(2); 17 CFR 201.1001(b). In
addition to being published in the Federal Register, the penalty
amounts in this Notice will be made available on the Commission's
website at https://www.sec.gov/enforce/civil-penalties-inflation-adjustments.htm, as detailed in 17 CFR 201.1001(b). This website
also lists the penalty amounts for violations that occurred on or
before November 2, 2015.
\16\ 17 CFR 201.1001(a).
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III. Small Business Regulatory Enforcement Fairness Act Status
OMB has concurred in our recommendation that this Notice is not a
``major rule'' as defined by section 251 of the Small Business
Regulatory Enforcement Fairness Act (``SBREFA''), 5 U.S.C. 804(2),
because (1) it will not have an annual effect of $100 million dollars
or more on the economy, (2) it does not present a major increase in
prices for consumers or individual industries, and (3) it does not have
significant adverse effects on competition, investment, or
innovation.\17\
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\17\ See generally SBREFA, Public Law 104-121 (1996).
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By the Commission.
Dated: January 6, 2023.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2023-00370 Filed 1-10-23; 8:45 am]
BILLING CODE 8011-01-P
