[Federal Register Volume 68, Number 163 (Friday, August 22, 2003)]
[Rules and Regulations]
[Pages 50954-50955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21539]



[[Page 50953]]

-----------------------------------------------------------------------

Part VI





Securities and Exchange Commission





-----------------------------------------------------------------------



17 CFR Parts 200 and 202



Adoption of Filing Fee Account Rule; Final Rule

  Federal Register / Vol. 68, No. 163 / Friday, August 22, 2003 / Rules 
and Regulations  

[[Page 50954]]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 200 and 202

[Release Nos. 33-8267; 34-48361; 35-27714; 39-2410; IC-26153]


Adoption of Filing Fee Account Rule

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Securities and Exchange Commission is adopting 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.

EFFECTIVE DATE: October 21, 2003.

FOR FURTHER INFORMATION CONTACT: Ronnette McDaniel, Office of Filings 
and Information Services at (202) 942-8925; Darrell L. Dockery, Office 
of Financial Management, at (202) 942-0340; Herbert Scholl, Division of 
Corporation Finance, at (202) 942-2930; or Carolyn Miller, Division of 
Investment Management, at (202) 942-0510.

SUPPLEMENTARY INFORMATION: 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.\1\ The SEC 
maintains an account for each filer who submits funds to the depository 
for the purpose of paying required fees. As an accommodation, we have 
allowed filers to submit funds in advance and to maintain indefinitely 
running balances in these accounts in anticipation of paying a required 
fee.
---------------------------------------------------------------------------

    \1\ Rule 3a of the Commission's Informal and Other Procedures 
[17 CFR 202.3a] and Rule 13(c) of Regulation S-T [17 CFR 232.13(c)].
---------------------------------------------------------------------------

    A large number of established fee accounts show outstanding 
balances with no activity for an extended period of time. Our Office of 
Financial Management is modifying its practices for maintaining filing 
fee accounts. The changes will reduce the administrative burdens 
associated with these inactive accounts and return control of unused 
funds to filers for more productive purposes, while retaining 
flexibility for those who are still periodically paying filing fees. We 
will soon take the following actions relating to current accounts:
    [sbull] 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.
    [sbull] 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.
    [sbull] 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.
    We also are adopting a new rule to codify our future practices 
relating to these filing fee accounts. The rule, which will be added as 
new paragraph (c) to Rule 3a, provides that the SEC will return all 
funds to account holders if there has been no activity in their 
accounts for 180 calendar days.\2\ We will include a reminder of this 
provision on each monthly account statement sent to active account 
holders.
---------------------------------------------------------------------------

    \2\ We have chosen 180 calendar days as a reasonable period of 
time to allow filers flexibility to plan future filings and have 
money available to pay fees. The administrative and accounting 
burdens associated with accounts without activity beyond that period 
begin to outweigh the benefits to filers. The 180-day period begins 
on the date of the last deposit or withdrawal or other adjustment to 
an account, regardless of the amount. Consequently, if a filer has a 
balance in an account that has been inactive for almost 180 days, 
the filer can avoid the return of funds simply by adding a nominal 
amount of money to the account via the depository or by making a 
filing that will draw down a fee, at which point the 180-day period 
is re-started.
---------------------------------------------------------------------------

    The rule also 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, we may not be able to provide timely account statements, and 
we may ultimately be unable to return funds to the 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.\3\ This method ensures data 
integrity and the most timely update. Alternatively, a company may 
report a change of addresses on an amended Form ID.\4\ 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.
---------------------------------------------------------------------------

    \3\ This process is described in the EDGAR Filer Manual (Release 
8.5), Vol. 1, Section 6.5.1.
    \4\ Form ID is used by filers to obtain access codes to make 
electronic filings on the EDGAR system and requires filers to 
provide account address information to the Commission [17 CFR 
239.63; 17 CFR 249.446; 17 CFR 274.402].
---------------------------------------------------------------------------

    We also are adopting an update and revision to Rule 200.30-13, 
delegating authority to the Office of Financial Management to 
administer Rule 3a(c).\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-13.
---------------------------------------------------------------------------

    Since this rule relates solely to agency procedure or practice, 
publication for notice and comment is not required under the 
Administrative Procedure Act.\6\ It follows that the requirements of 
the Regulatory Flexibility Act do not apply.\7\ This rule also imposes 
no new collection of information under the Paperwork Reduction Act.\8\
---------------------------------------------------------------------------

    \6\ 5 U.S.C. 553(b).
    \7\ 5 U.S.C. 601-612.
    \8\ 44 U.S.C. 3501-3520.
---------------------------------------------------------------------------

Statutory Basis

    Rule 3a(c) and revised Rule 200.30-13 are promulgated under 
Sections 6 and 19(a) of the Securities Act of 1933, Sections 4A, 4B, 
13(e), 14(g) and 23(a) of the Securities Exchange Act of 1934, Section 
319(a) of the Trust Indenture Act of 1939, Section 20(a) of the Public 
Utility Holding Company Act of 1935, Section 211 of the Investment 
Advisers Act of 1940 and Section 38 of the Investment Company Act of 
1940.

List of Subjects

17 CFR Part 200

    Administrative practice and procedure, Authority delegations 
(Government Agencies).

17 CFR Part 202

    Administrative practice and procedure, Securities.

Text of the Amendment

0
In accordance with the foregoing, Title 17, Chapter II of the Code of 
Federal Regulations is amended as follows:

PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION 
REQUESTS

0
1. The authority citation for Part 200, Subpart A--Organization and 
Program Management, continues to read, in part, as follows:

    Authority: 15 U.S.C. 77s, 78d-1, 78d-2, 78w, 78ll(d), 78mm, 79t, 
77sss, 80a-37, 80b-11, unless otherwise noted.
* * * * *

0
2. By revising Sec.  200.30-13 to read as follows:


Sec.  200.30-13  Delegation of authority to Associate Executive 
Director of the Office of Financial Management.

    Pursuant to the provisions of 15 U.S.C. 78d-1 and 78d-2, the 
Securities

[[Page 50955]]

and Exchange Commission hereby delegates, until the Commission orders 
otherwise, the following functions to the Associate Executive Director 
of the Office of Financial Management, to be performed by him or her, 
or under his or her direction by such person or persons as may be 
designated from time to time by the Chairman of the Commission:
    (a) The compromise and collection of federal claims as required by 
the Federal Claims Collection Act of 1966, as amended and recodified at 
31 U.S.C. 3701-3720, in conformance with standards and procedures 
jointly promulgated by the Secretary of the Treasury and the Attorney 
General of the United States in 31 CFR Parts 900-904.
    (b) The administration of filing fee account procedures and 
policies established in Sec.  202.3a of this chapter.

PART 202--INFORMAL AND OTHER PROCEDURES

0
3. The authority citation for Part 202 continues to read, in part, as 
follows:

    Authority: 15 U.S.C. 77s, 77t, 78d-1, 78u, 78w, 78ll(d), 79r, 
79t, 77sss, 77uuu, 80a-37, 80a-41, 80b-9, and 80b-11, unless 
otherwise noted.

* * * * *

0
4. By amending Sec.  202.3a by adding paragraph (c), to read as 
follows:


Sec.  202.3a  Instructions for filing fees.

* * * * *
    (c) Filing fee accounts. (1) A filing fee account is maintained for 
each filer who submits a filing requiring a fee on the Commission's 
EDGAR system or who submits funds to the U.S. Treasury designated 
depository in anticipation of paying a filing fee. Account statements 
are regularly prepared and provided to account holders. Account holders 
must maintain a current account address with the Commission to ensure 
timely access to these statements.
    (2) Funds held in any filing fee account in which there has not 
been a deposit, withdrawal or other adjustment for more than 180 
calendar days will be returned to the account holder, and account 
statements will not be sent again until a deposit, withdrawal or other 
adjustment is made with respect to the account. Filers must maintain a 
current account address to assure the timely return of funds. It may 
not be possible to return funds from inactive accounts if the 
Commission is unable to identify a current account address of an 
account holder after making reasonable efforts to do so.
    Note to paragraph (c). 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 [17 CFR 239.63; 17 CFR 249.446 and 17 CFR 274.402]. 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.

    Dated: August 19, 2003.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-21539 Filed 8-21-03; 8:45 am]
BILLING CODE 8010-01-P