Securities and Exchange Commission (SEC) officials have unanimously approved a process modernizing the manner in which filing fees are reported, calculated and paid.
Operating companies and investment companies pay filing fees when entering certain transactions that include registered securities offerings, as well as mergers and acquisitions. The agency recently adopted amendments addressing filing fee disclosure and payment methods.
“These updates, which will be phased in over the coming years, will make the filing process faster, less expensive, and more efficient for SEC staff and market participants,” SEC Chair Gary Gensler said.
The SEC said the revisions focus on fee-bearing forms, schedules, and rules requiring companies and funds to include required information for filing fee calculation in a structured format.
Additionally, officials revealed there would be amendments involving new options for Automated Clearing House (ACH), in addition to debit and credit card payment of filing fees. The paper check and money order filing fee payment options, which the SEC determined to be infrequently used, will be eliminated, per authorities.
The modifications are slated to become effective on Jan. 31, 2022, according to the SEC. The amendments addressing filing fee payment via ACH and debit and credit cards options and elimination of paper check and money order filing fee payment options being effective on May 31, 2022.
The Commission is providing an extended transition period to give filers additional time to comply with the Inline XBRL structuring requirements for filing fee information.