Senate approves SEC pay parity legislation

The Senate Thursday approved by unanimous consent House-passed legislation to provide pay parity for SEC employees and reduce the fees levied on securities transactions and registrations.

The Senate's action clears the bill for President Bush's signature.

The Senate action was praised by the Securities Industry Association, which has been lobbying for the fee reduction.

The total fees collected by the federal government in fiscal 2000 reached $2.27 billion, six times the SEC's budget of $377 million.

Under the legislation, Section 31 fees, the surcharge on securities transactions, would be adjusted at least annually so the amount of all fees collected more clearly reflects the costs of running the commission. The fee currently stands at 0.03 of a percent of the value of securities transactions.

The registration fee rate would be $67 per $1 million in securities registered for fiscal 2002 to 2006. For fiscal 2007 and thereafter, the rate would be cut to $33. Merger and tender fees are also similarly reduced.

The bill is expected to reduce Treasury receipts by $14 billion over 10 years.