2025-00513Notice

SEC Gives Annual Inflation Raise to Financial Crime Penalties

Published Date: 1/13/2025

Notice

Summary

Starting January 15, 2025, the Securities and Exchange Commission is raising the fines for breaking certain financial rules to keep up with inflation. This means anyone who violates securities laws after November 2, 2015, could face bigger penalties. These changes help keep penalties fair and effective as prices go up over time.

Analyzed Economic Effects

2 provisions identified: 0 benefits, 2 costs, 0 mixed.

Higher Dollar Penalties for Specific Violations

The Notice lists specific adjusted penalty amounts. Examples include: a Securities Act penalty for a natural person increasing to $10,824; an Exchange Act failure-to-file penalty rising to $698; an insider-trading penalty for a controlling person rising to $2,626,135; and a Sarbanes-Oxley maximum for "any other person" increasing to $26,116,495. These adjusted dollar amounts are effective January 15, 2025 and apply to violations after November 2, 2015.

Annual CPI Increase to SEC Fines

The SEC raised the maximum civil monetary penalties by a CPI-U multiplier of 1.02598 (about a 2.598% increase). The adjustment is effective January 15, 2025 and applies to penalties imposed after that date for violations that occurred after November 2, 2015.

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Key Dates

Published Date
Effective Date
1/13/2025
1/15/2025

Department and Agencies

Department
Independent Agency
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