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Administration February 6, 2002
House Votes to Reduce SEC Fees
June 14, 2001 (PLANSPONSOR.com) - The House of
Representatives voted 404-22, to reduce fees charged for
stock transactions, a measure that would save investors about
$14 billion over the next 10 years.
Reported by Camilla Klein
The Section 31 fees, levied on investors every time they sell a security, were originally designed to cover the operating costs of the Securities and Exchange Commission (SEC). However, increases in trading volume and stock prices have sent the amount collected increasing to an estimated six times the agency’s annual budget.
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.
The measure may have to be reconciled with a similar bill that passed the Senate.
Read more at Compromise on SEC Bill Folds