Compliance September 10, 2001

Daschle Vows SEC Fee Bill Will Advance

October 9, 2001(PLANSPONSOR.com) - Senate Majority Leader Tom Daschle (D- South Dakota) has promised action soon on legislation to cut stock-trading fees and raise pay for Securities and Exchange Commission employees, according to a report from Reuters.

Reported by

Camilla Klein

In a letter to National Treasury Employees Union President Colleen Kelley, dated October 5, Daschle wrote of his intention to bring the legislation to the floor this year, calling it long overdue.

The Senate approved the bill in March and the House adopted its own version in June by a 404-22 vote (see House Votes to Reduce SEC Fees ). However, the Senate failed to schedule a vote on adopting a final compromise version.

Fees

The legislation would save investors about $14 billion over 10 years by reducing the fees to register, buy and sell securities, and conduct mergers and acquisitions.

These fees fund the SEC, but the agency collects more than six times the amount it needs to fund its operations. The money is used to pay for other federal programs.

As they currently stand, the fees would generate an estimated $25 billion over the next decade. Last year, the SEC budget was only $375 million, while securities transaction fees raised $2.27 billion.

Competitive Pay

The legislation also includes a pay hike for SEC employees, which would put their salaries in line with those earned by counterparts at federal bank regulatory agencies.