17 C.F.R. § 201.1001

Current through March 31, 2024

Section 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

U.S. Code citation	Civil monetary penalty description	Date of violation and corresponding penalty
U.S. Code citation	Civil monetary penalty description	Dec. 10, 1996- Feb. 2, 2001ⁱ	Feb. 3, 2001- Feb. 14, 2005ⁱⁱ	Feb. 15, 2005- Mar. 3, 2009ⁱⁱⁱ	Mar. 4, 2009- Mar. 5, 2013^iv	Mar. 6, 2013- Nov. 2, 2015^v
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	^vi $7,500 ^vi 75,000	$7,500 80,000
	For natural person/fraud	N/A	N/A	N/A	^vi 75,000	80,000
	For any other person/fraud	N/A	N/A	N/A	^vi 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	^vi 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	^vi 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	^vii 100,000 ^vii 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	^vii 750,000 ^vii 15,000,000	800,000 15,825,000	900,000 17,800,000	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.

17 C.F.R. §201.1001

82 FR 5371, Jan. 18, 2017

81 FR 43045, 8/1/2016; 82 FR 5371, 1/18/2017