The Security Traders Association (“STA”)1 appreciates the opportunity to comment on the “Financial CHOICE Act of 2016” discussion draft. STA’s comments will focus on section 404 of Financial CHOICE Act relating to the fee structure funding the Securities and Exchange Commission (“Commission” or “SEC”).
Section 991 of the Dodd-Frank Act modified the funding sources of the Securities and Exchange Commission to one that relies exclusively on fees on equity securities and security futures transactions.
This was a departure from the Investor and Capital Markets Fee Relief Act enacted in 2002, which established a funding mechanism for the Commission through adjusted transaction fees (Section 31 fees), fees on registration of securities (Section 6(b)), fees on the purchase of securities by the issuer (Section 13(e)), and fees for certain proxy solicitations in corporate control transactions (Section 14(g)).