Civil Monetary Penalties Adjusted for Inflation

January 13, 2017

A final rule has been introduced to carry out the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The final rule implements the first annual inflation adjustment of Securities and Exchange Commission-issued (“SEC”) civil monetary penalties under the following:

  • Securities Act of 1933
  • Securities Exchange Act of 1934
  • Investment Company Act of 1940
  • Investment Advisers Act of 1940
  • Certain penalties under the Sarbanes-Oxley Act of 2002

Violations that occurred after November 2, 2015, will be impacted upon the final rule’s effective date. For violations on or before that date, the SEC will reinstate penalty amounts in its previous adjustments as listed in the Debt Collection Improvement Act.

The final rule will be effective once it is published in the Federal Register.