The Securities and Exchange Commission (SEC) published a notice to adjust civil monetary penalties for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. These adjustments apply to penalties under the Securities Act, the Exchange Act, the Investment Company Act, and part of the Sarbanes-Oxley Act. The new amounts were calculated using a percentage change between the Consumer Price Index for October 2023 and October 2024 and will be effective from January 15, 2025. This update ensures penalties keep pace with inflation and remain effective deterrents.
Simple Explanation
The SEC is making their penalty amounts bigger because prices go up each year. These bigger penalties will start on January 15, 2025, to make sure people follow the rules.