(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

Appropriation Enacted, Fee Rate Advisory Issued

The omnibus appropriations bill that includes funding for the SEC for the remainder of fiscal year 2005 was signed into law. As of December 13, 2004, the Securities Act Section 6(b) fee rate applicable to the registration of securities, the Exchange Act Section 13(e) fee rate applicable to the repurchase of securities and the Exchange Act Section 14(g) fee rate applicable to proxy solicitations and statements in corporate control transactions will decrease to $117.70 per million. The Section 6(b) rate is also the rate used to calculate the fees payable with the annual notice of securities sold pursuant to Rule 24f-2 under the Investment Company Act.

In addition, as of January 7, 2005, the Exchange Act Section 31 fee rate applicable to securities transactions on the exchanges and Nasdaq will increase to $32.90 per million. The Section 31 assessment on security futures transactions will remain unchanged at $0.009 per round turn transaction. Self-regulatory organizations collect Section 31 fees pursuant to their rules.

The adjusted fee rates will not affect the amount of funding available to the Commission. New fee rates for fiscal year 2006 will be announced no later than April 30, 2005. These fee rates will become effective October 1, 2005, or, if later, after the agency's fiscal year 2006 appropriation is enacted. In addition, the SEC may be required to make a midyear adjustment to the Section 31 fee rate for fiscal 2006, after consultation with CBO and OMB. Such a change would be announced by March 1, 2005, and would be effective April 1, 2005.