KEY INFORMATION

Summary

Provides for return of unused filing fees held in filing fee accounts with no activity for 180 days.

Effective Date

October 21, 2003

Complete Text:

Download PDF Version Of The Filing Fee Account Rule

Related Resource:

Click Here For Instructions for Requesting Unused Money

Contacts:

Ronnette McDaniel

     Filings & Info Services Office

     (202) 942-8925

Darrell L. Dockery

     Office of Financial Management

     (202) 942-0340

Herbert Scholl

     Division of Corporation Finance

     (202) 942-2930

As usual, if you need assistance locating additional resources, please call Compliance Week toll free at 888-519-9200 and we'll do our best to track it down for you for free.

On Aug. 19, the SEC adopted a new rule that provides for the return of unused filing fees held in filing fee accounts in which there has been no activity for 180 days.

Background

Commission rules require fees paid in connection with filings to be submitted to the U.S. Treasury Department depository at Mellon Bank in Pittsburgh, Pennsylvania.

The SEC maintains an account for each filer who submits funds to the depository for the purpose of paying required fees. As an accommodation, the SEC has allowed filers to submit funds in advance and to maintain indefinitely running balances in these accounts in anticipation of paying a required fee.

Outstanding Balances

However, a large number of established fee accounts show outstanding balances with no activity for an extended period of time.

The SEC's Office of Financial Management is modifying its practices for maintaining filing fee accounts. The changes are expected reduce the administrative burdens associated with those inactive accounts, and will return control of unused funds to filers while retaining flexibility for those who are still periodically paying filing fees.

What Will Happen?

According to the proposed rule, the SEC will "soon" take the following actions relating to current accounts:

Account statements will be sent to all account holders at the most current account address they have provided to the Commission. Subsequently, each account with activity within 180 calendar days will receive a monthly account statement.

If an account has had no activity since January 1, 2003 and the balance exceeds $5.00, the funds will be returned to the account holders.

Balances of $5.00 or less in accounts with no activity since January 1, 2003 will be returned to account holders upon request, if a request is made before January 1, 2004. If no such request is received, the funds will be forwarded to the U.S. Treasury general account, in compliance with applicable regulations.

Future Practices

The SEC is also adopting a new rule to codify future practices relating to these filing fee accounts.

The rule provides that the SEC will return all funds to account holders if there has been no activity in their accounts for 180 calendar days. The SEC will include a reminder of this provision on each monthly account statement sent to active account holders.

Accounts And Addresses

The rule indicates that account statements and returned funds will be sent to the account address provided to the SEC by each filer, and that filers must keep this address current; without current account addresses, the SEC may not be able to provide timely account statements or return funds to account holders.

To ensure the timely return of funds, all current account holders should confirm as soon as possible that their account addresses on file with the Commission are up to date.

A company may update its account and other addresses using two different methods:

The preferred and most efficient method is to change them online using the EDGAR filing website. This method ensures data integrity and the most timely update.

Alternatively, a company may report a change of addresses on an amended Form ID.

Simply changing an address in the text of the cover page of a filing made on the EDGAR system will not be sufficient to update the Commission's account address records.

Comments And Authority

Since this new rule relates solely to agency procedure or practice, publication for notice and comment is not required; requirements of the Regulatory Flexibility Act do not apply either, and the rule imposes no new collection of information under the Paperwork Reduction Act.

The SEC has delegated authority to administer the rule to the Office of Financial Management.

Other

For contacts, complete rule text, and other information, refer to the box at right.

NOTE: Please note that this is a summary of a SEC rule, and should not be construed to be a complete or final rule, nor should it be construed to be legal guidance. Please refer to the SEC's Web site for updated and final rule information.