Securities and Exchange Commission Adjustment to Section 31 Fee Rate

December 14, 2004


NASD would like to notify its members that the Securities and Exchange Commission (SEC or Commission) has issued Fee Rate Advisory #6 for Fiscal Year 2005.  Effective January 7, 2005, the revised Section 31 transaction fee rate will increase to $32.90 per million.


The Commission is required to adjust the filing and securities transaction fee rates on an annual basis, after consultation with the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB).  A copy of the Commission's April 30, 2004, order regarding the fee rate adjustments for fiscal year 2005, including the calculation methodologies, is available at


In addition, the Commission will announce the new fee rates for fiscal year 2006 no later than April 30, 2005.  These fee rates will become effective October 1, 2005, or, if later, after the Commission's fiscal year 2006 appropriation is enacted.  The Commission also may be required to make a "mid-year" adjustment to the Section 31 fee rate for fiscal 2006, after consultation with the CBO and the OMB, which would be announced no later than March 1, 2005, effective April 1, 2005.  The Commission will issue further notices as appropriate.  This information will be posted on the SEC's Web Site.


Systems Changes

NASD members must make the necessary systems changes to be implemented for securities transactions starting January 7, 2005.1 In the event any member has difficulty implementing systems changes by that date, or if you have further questions about this Member Alert, please contact Rob Renner, NASD Director of Accounting Operations, at (240) 386-5303 or via e-mail.



1 To recover the costs of NASD’s Section 31 obligation, NASD assesses a Regulatory Transaction Fee on its member firms under Section 3 of Schedule A to the NASD By-Laws, the amount of which is set in accordance with Section 31 of the Securities Exchange Act of 1934.