17 C.F.R. § 201.1001

2020-08-17
§ 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

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.

U.S. Code citation

Civil monetary penalty description

Date of violation and corresponding penalty

Dec. 10, 1996- Feb. 2, 2001

Feb. 3, 2001- Feb. 14, 2005

Feb. 15, 2005- Mar. 3, 2009

Mar. 4, 2009- Mar. 5, 2013

Mar. 6, 2013- Nov. 2, 2015

15 U.S.C. 77h-1(g) (Securities Act Sec. 8A(g))

For natural person For any other person

N/A N/A

N/A N/A

N/A N/A

$7,500 75,000

$7,500 80,000

For natural person/fraud

N/A

N/A

N/A

75,000

80,000

For any other person/fraud

N/A

N/A

N/A

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others or gains to self

N/A

N/A

N/A

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others or gain to self

N/A

N/A

N/A

725,000

775,000

15 U.S.C. 77t(d) (Securities Act Sec. 20(d))

For natural person For any other person

$5,500 55,000

$6,500 60,000

$6,500 65,000

7,500 75,000

7,500 80,000

For natural person/fraud

55,000

60,000

65,000

75,000

80,000

For any other person/fraud

275,000

300,000

325,000

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others

110,000

120,000

130,000

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others

550,000

600,000

650,000

725,000

775,000

15 U.S.C. 78u(d)(3) (Exchange Act Sec. 21(d)(3))

For natural person For any other person

5,500 55,000

6,500 60,000

6,500 65,000

7,500 75,000

7,500 80,000

For natural person/fraud

55,000

60,000

65,000

75,000

80,000

For any other person/fraud

275,000

300,000

325,000

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others or gains to self

110,000

120,000

130,000

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others or gain to self

550,000

600,000

650,000

725,000

775,000

15 U.S.C. 78u-1(a)(3) (Exchange Act Sec. 21A(a)(3))

Insider Trading - controlling person

1,100,000

1,200,000

1,275,000

1,425,000

1,525,000

15 U.S.C. 78u-2 (Exchange Act Sec. 21B)

For natural person For any other person

5,500 55,000

6,500 60,000

6,500 65,000

7,500 75,000

7,500 80,000

For natural person/fraud

55,000

60,000

65,000

75,000

80,000

For any other person/fraud

275,000

300,000

325,000

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others

110,000

120,000

130,000

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others

550,000

600,000

650,000

725,000

775,000

15 U.S.C. 78ff(b) (Exchange Act Sec. 32(b))

Exchange Act/failure to file information documents, reports

110

110

110

110

210

15 U.S.C. 78ff(c)(1)(B) (Exchange Act Sec. 32(c)(1)(B))

Foreign Corrupt Practices - any issuer

11,000

11,000

11,000

16,000

16,000

15 U.S.C. 78ff(c)(2)(B) (Exchange Act Sec. 32(c)(2)(B))

Foreign Corrupt Practices - any agent or stockholder acting on behalf of issuer

11,000

11,000

11,000

16,000

16,000

15 U.S.C. 80a-9(d) (Investment Company Act Sec. 9(d))

For natural person For any other person

5,500 55,000

6,500 60,000

6,500 65,000

7,500 75,000

7,500 80,000

For natural person/fraud

55,000

60,000

65,000

75,000

80,000

For any other person/fraud

275,000

300,000

325,000

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others or gains to self

110,000

120,000

130,000

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others or gain to self

550,000

600,000

650,000

725,000

775,000

15 U.S.C. 80a-41(e) (Investment Company Act Sec. 42(e))

For natural person For any other person

5,500 55,000

6,500 60,000

6,500 65,000

7,500 75,000

7,500 80,000

For natural person/fraud

55,000

60,000

65,000

75,000

80,000

For any other person/fraud

275,000

300,000

325,000

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others

110,000

120,000

130,000

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others

550,000

600,000

650,000

725,000

775,000

15 U.S.C. 80b-3(i) (Investment Advisers Act Sec. 203(i))

For natural person For any other person

5,500 55,000

6,500 60,000

6,500 65,000

7,500 75,000

7,500 80,000

For natural person/fraud

55,000

60,000

65,000

75,000

80,000

For any other person/fraud

275,000

300,000

325,000

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others or gains to self

110,000

120,000

130,000

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others or gain to self

550,000

600,000

650,000

725,000

775,000

15 U.S.C. 80b-9(e) (Investment Advisers Act Sec. 209(e))

For natural person For any other person

5,500 55,000

6,500 60,000

6,500 65,000

7,500 75,000

7,500 80,000

For natural person/fraud

55,000

60,000

65,000

75,000

80,000

For any other person/fraud

275,000

300,000

325,000

375,000

400,000

For natural person/fraud/substantial losses or risk of losses to others

110,000

120,000

130,000

150,000

160,000

For any other person/fraud/substantial losses or risk of losses to others

550,000

600,000

650,000

725,000

775,000

15 U.S.C. 7215(c)(4)(D)(i) (Sarbanes-Oxley Act Sec. 105(c)(4)(D)(i))

For natural person For any other person

N/A N/A

100,000 2,000,000

110,000 2,100,000

120,000 2,375,000

130,000 2,525,000

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

N/A N/A

750,000 15,000,000

800,000 15,825,000

900,000 17,800,000

950,000 18,925,000

[82 FR 5371, Jan. 18, 2017]