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SECURITIES AND EXCHANGE COMMISSION

[Release Nos. 33-11263; 34-99276; IA-6521; IC-35085]

Adjustments to Civil Monetary Penalty Amounts

AGENCY: Securities and Exchange Commission.

ACTION: Notice of annual inflation adjustment of civil monetary penalties.

SUMMARY: The Securities and Exchange Commission (“Commission”) is publishing this 

notice (“Notice”) pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements 

Act of 2015 (“2015 Act”). This Act requires all agencies to annually adjust for inflation the civil 

monetary penalties that can be imposed under the statutes administered by the agency and 

publish the adjusted amounts in the Federal Register. This Notice sets forth the annual inflation 

adjustment of the maximum amount of civil monetary penalties (“CMPs”) administered by the 

Commission under the Securities Act of 1933, the Securities Exchange Act of 1934 (“Exchange 

Act”), the Investment Company Act of 1940, the Investment Advisers Act of 1940, and certain 

penalties under the Sarbanes-Oxley Act of 2002. These amounts are effective beginning on 

January 15, 2024, and will apply to all penalties imposed after that date for violations of the 

aforementioned statutes that occurred after November 2, 2015. 

FOR FURTHER INFORMATION CONTACT: Stephen M. Ng, Senior Special Counsel, 

Office of the General Counsel, at (202) 551-7957, or Hannah W. Riedel, Senior Counsel, Office 

of the General Counsel, at (202) 551-7918.

SUPPLEMENTARY INFORMATION:

I. BACKGROUND

This Notice is being published pursuant to the 2015 Act,1 which amended the Federal 

1 Pub. L. 114-74 Sec. 701, 129 Stat. 599-601 (Nov. 2, 2015), codified at 28 U.S.C. 2461 note.
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Civil Penalties Inflation Adjustment Act of 1990 (“Inflation Adjustment Act”).

2

 The Inflation 

Adjustment Act previously had been amended by the Debt Collection Improvement Act of 1996 

(“DCIA”)3 to require that each federal agency adopt regulations at least once every four years 

that adjust for inflation the CMPs that can be imposed under the statutes administered by the 

agency. Pursuant to this requirement, the Commission previously adopted regulations in 1996, 

2001, 2005, 2009, and 2013 to adjust the maximum amount of the CMPs that could be imposed 

under the statutes the Commission administers.4

The 2015 Act replaces the inflation adjustment formula prescribed in the DCIA with a 

new formula for calculating the inflation-adjusted amount of CMPs. The 2015 Act requires that 

agencies use this new formula to re-calculate the inflation-adjusted amounts of the penalties they 

administer on an annual basis and publish these new amounts in the Federal Register by January 

15 of each year.5

 The Commission previously published the first annual adjustment required by 

the 2015 Act on January 6, 2017 (“2017 Adjustment”).6 As part of the 2017 Adjustment, the 

Commission promulgated 17 CFR 201.1001(a) and Table I to Subsection 1001, which lists the 

penalty amounts for all violations that occurred on or before November 2, 2015. For violations 

occurring after November 2, 2015, Subsection 1001(b) provides that the applicable penalty 

2

 Pub. L. 101-410, 104 Stat. 890-892 (1990), codified at 28 U.S.C. 2461 note.

3

 Pub. L. 104-134, Title III, § 31001(s)(1), 110 Stat. 1321-373 (1996), codified at 28 U.S.C. 2461 note.

4

 See Release Nos. 33-7361, 34-37912, IA-1596, IC-22310, dated Nov. 1, 1996 (effective Dec. 9, 1996), 

previously found at 17 CFR 201.1001 and Table I to Subpart E of Part 201; Release Nos. 33-7946, 34-

43897, IA-1921, IC-24846, dated Jan. 31, 2001 (effective Feb. 2, 2001), previously found at 17 CFR 

201.1002 and Table II to Subpart E of Part 201; Release Nos. 33-8530, 34-51136, IA-2348, IC-26748, 

dated Feb. 9, 2005 (effective Feb. 14, 2005), previously found at 17 CFR 201.1003 and Table III to Subpart 

E of Part 201; Release Nos. 33-9009, 34-59449, IA-2845, IC-28635, dated Feb. 25, 2009 (effective Mar. 3, 

2009), previously found at 17 CFR 201.1004 and Table IV to Subpart E of Part 201; and Release Nos. 33-

9387, 34-68994, IA-3557, IC-30408, dated Feb. 27, 2013 (effective Mar. 5, 2013), previously found at 17 

CFR 201.1005 and Table V to Subpart E of Part 201. The penalty amounts contained in these releases have

now been consolidated into Table I to 17 CFR 201.1001.

5

 28 U.S.C. 2461 note Sec. 4. 

6

 Release Nos. 33-10276; 34-79749; IA-4599; IC-32414 (effective Jan. 18, 2017).
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amounts will be adjusted annually based on the formula set forth in the 2015 Act. Subsection 

1001(b) further provides that these adjusted amounts will be published in the Federal Register

and on the Commission’s website. The Commission published the two most recent annual 

adjustments on January 6, 2022 (“2022 Adjustment”),

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 and January 6, 2023 (“2023 

Adjustment”).8

A CMP is defined in relevant part as any penalty, fine, or other sanction that: (1) is for a 

specific amount, or has a maximum amount, as provided by federal law; and (2) is assessed or 

enforced by an agency in an administrative proceeding or by a federal court pursuant to federal 

law.9 This definition applies to the monetary penalty provisions contained in four statutes 

administered by the Commission: the Securities Act, the Exchange Act, the Investment Company 

Act, and the Investment Advisers Act. In addition, the Sarbanes-Oxley Act provides the Public 

Company Accounting Oversight Board (“PCAOB”) authority to levy civil monetary penalties in 

its disciplinary proceedings pursuant to 15 U.S.C. 7215(c)(4)(D).10 The definition of a CMP in 

the Inflation Adjustment Act encompasses such civil monetary penalties.11 

7

 Release Nos. 33-11021; 34-93925; IA-5938; IC-34466 (effective Jan. 15, 2022).

8

 Release Nos. 33-11143; 34-96605; IA-6212; IC-34797) (effective Jan. 15, 2023).

9

 28 U.S.C. 2461 note Sec. 3(2). 

10 15 U.S.C. 7215(c)(4)(D). 

11 The Commission may by order affirm, modify, remand, or set aside sanctions, including civil monetary 

penalties, imposed by the PCAOB. See Section 107(c) of the Sarbanes-Oxley Act of 2002, 15 U.S.C. 

7217. The Commission may enforce such orders in federal district court pursuant to Section 21(e) of the 

Exchange Act. As a result, penalties assessed by the PCAOB in its disciplinary proceedings are penalties 

“enforced” by the Commission for purposes of the Inflation Adjustment Act. See Adjustments to Civil 

Monetary Penalty Amounts, Release No. 33-8530 (Feb. 4, 2005) [70 FR 7606 (Feb. 14, 2005)].
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II. ADJUSTING THE COMMISSION’S PENALTY AMOUNTS FOR INFLATION 

This Notice sets forth the annual inflation adjustment required by the 2015 Act for all 

CMPs under the Securities Act, the Exchange Act, the Investment Company Act, and the 

Investment Advisers Act, and certain civil monetary penalties under the Sarbanes-Oxley Act. 

Pursuant to the 2015 Act, the penalty amounts in the 2024 Adjustment are adjusted for 

inflation by increasing them by the percentage change between the Consumer Price Index for all 

Urban Consumers (“CPI-U”) for October 2022 and the October 2023 CPI-U.12 OMB has 

provided its calculation of this multiplier (“CPI-U Multiplier”) to agencies.

13 The new penalty 

amounts are determined by multiplying the amounts in the 2024 Adjustment by the CPI-U 

Multiplier and then rounding to the nearest dollar. 

For example, the CMP for certain insider trading violations by controlling persons under 

Exchange Act Section 21A(a)(3)14 was readjusted for inflation as part of the 2023 Adjustment to 

$2,479,282. To determine the new CMP under this provision, the Commission multiplies this 

amount by the CPI-U Multiplier of 1.03241, and rounds to the nearest dollar. Thus, the new 

CMP for Exchange Act Section 21A(a)(3) is $2,559,636. 

Below is the Commission’s calculation of the new penalty amounts for the penalties it 

administers: 

12 28 U.S.C. 2461 note Sec. 5. 

13 Office of Management and Budget, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023), available 

at https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-PenaltyInflation-Adjustments-for-2024.pdf. This multiplier represents the percentage increase between the Oct. 

2022 CPI-U and the Oct. 2023 CPI-U, plus 1.

14 15 U.S.C. 78u-1(a)(3). 
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U.S. Code citation Civil monetary penalty description

2023

Adjustment 

Penalty 

Amounts

CPI-U 

Multiplier

2024

Adjusted 

Penalty 

Amounts

15 U.S.C. 77h-1(g)

(Securities Act Sec. 

8A(g))

For natural person $10,219 1.03241 $10,550

For any other person 102,193 1.03241 105,505

For natural person / fraud 102,193 1.03241 105,505

For any other person / fraud 510,962 1.03241 527,522

For natural person / fraud / 

substantial losses or risk of losses to 

others or gains to self

204,385 1.03241 211,009

For any other person / fraud / 

substantial losses or risk of losses to 

others or gain to self

987,860 1.03241 1,019,877

15 U.S.C. 77t(d)

(Securities Act Sec. 

20(d))

For natural person 11,162 1.03241 11,524

For any other person 111,614 1.03241 115,231

For natural person / fraud 111,614 1.03241 115,231

For any other person / fraud 558,071 1.03241 576,158

For natural person / fraud / 

substantial losses or risk of losses to 

others

223,229 1.03241 230,464

For any other person / fraud / 

substantial losses or risk of losses to 

others

1,116,140 1.03241 1,152,314

15 U.S.C. 78u(d)(3)

(Exchange Act Sec. 

21(d)(3))

For natural person 11,162 1.03241 11,524

For any other person 111,614 1.03241 115,231

For natural person / fraud 111,614 1.03241 115,231

For any other person / fraud 558,071 1.03241 576,158

For natural person / fraud / 

substantial losses or risk of losses to 

others or gains to self

223,229 1.03241 230,464

For any other person / fraud / 

substantial losses or risk of losses to 

others or gain to self

1,116,140 1.03241 1,152,314

15 U.S.C. 78u1(a)(3)

(Exchange Act Sec. 

21A(a)(3))

Insider Trading – controlling person 2,479,282 1.03241 2,559,636

15 U.S.C. 78u-2

(Exchange Act Sec. 

21B)

For natural person 11,162 1.03241 11,524

For any other person 111,614 1.03241 115,231

For natural person / fraud 111,614 1.03241 115,231

For any other person / fraud 558,071 1.03241 576,158
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For natural person / fraud / 

substantial losses or risk of losses to 

others

223,229 1.03241 230,464 

For any other person / fraud / 

substantial losses or risk of losses to 

others

1,116,140 1.03241 1,152,314 

15 U.S.C. 78ff(b)

(Exchange Act Sec. 

32(b))

Exchange Act / failure to file 

information documents, reports 659 1.03241 680 

15 U.S.C. 

78ff(c)(1)(B)

(Exchange Act Sec. 

32(c)(1)(B))

Foreign Corrupt Practices – any 

issuer 24,793 1.03241 25,597 

15 U.S.C. 

78ff(c)(2)(B)

(Exchange Act Sec. 

32(c)(2)(B))

Foreign Corrupt Practices – any 

agent or stockholder acting on behalf 

of issuer 

24,793 1.03241 25,597 

15 U.S.C. 80a-9(d) 

(Investment 

Company Act Sec. 

9(d))

 

 

For natural person 11,162 1.03241 11,524

For any other person 111,614 1.03241 115,231

For natural person / fraud 111,614 1.03241 115,231

For any other person / fraud 558,071 1.03241 576,158

For natural person / fraud / 

substantial losses or risk of losses to 

others or gains to self

223,229 1.03241 230,464 

For any other person / fraud / 

substantial losses or risk of losses to 

others or gain to self

1,116,140 1.03241 1,152,314 

15 U.S.C. 80a-41(e)

(Investment 

Company Act Sec. 

42(e))

 

 

 

 

For natural person 11,162 1.03241 11,524

For any other person 111,614 1.03241 115,231

For natural person / fraud 111,614 1.03241 115,231

For any other person / fraud 558,071 1.03241 576,158

For natural person / fraud / 

substantial losses or risk of losses to 

others

223,229 1.03241 230,464 

For any other person / fraud / 

substantial losses or risk of losses to 

others

1,116,140 1.03241 1,152,314 

15 U.S.C. 80b-3(i) 

(Investment 

Advisers Act Sec. 

203(i)) 

 

For natural person 11,162 1.03241 11,524

For any other person 111,614 1.03241 115,231

For natural person / fraud 111,614 1.03241 115,231

For any other person / fraud 558,071 1.03241 576,158

For natural person / fraud / 

substantial losses or risk of losses to 

others or gains to self

223,229 1.03241 230,464 
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For any other person / fraud / 

substantial losses or risk of losses to 

others or gain to self

1,116,140 1.03241 1,152,314 

15 U.S.C. 80b-9(e) 

(Investment 

Advisers Act Sec. 

209(e)) 

 

 

 

For natural person 11,162 1.03241 11,524

For any other person 111,614 1.03241 115,231

For natural person / fraud 111,614 1.03241 115,231

For any other person / fraud 558,071 1.03241 576,158

For natural person / fraud / 

substantial losses or risk of losses to 

others

223,229 1.03241 230,464 

For any other person / fraud / 

substantial losses or risk of losses to 

others

1,116,140 1.03241 1,152,314 

15 U.S.C. 

7215(c)(4)(D)(i)

(Sarbanes-Oxley Act 

Sec. 

105(c)(4)(D)(i))

For natural person 164,373 1.03241 169,700

For any other person 3,287,477 1.03241 3,394,024 

15 U.S.C. 

7215(c)(4)(D)(ii)

(Sarbanes-Oxley Act 

Sec. 

105(c)(4)(D)(ii))

For natural person 1,232,803 1.03241 1,272,758

For any other person 24,656,067 1.03241 25,455,170 

Pursuant to the 2015 Act and 17 CFR 201.1001, the adjusted penalty amounts in this 

Notice (and all penalty adjustments performed pursuant to the 2015 Act) apply to penalties 

imposed after the date the adjustment is effective for violations that occurred after November 2, 

2015, the 2015 Act’s enactment date. These penalty amounts supersede the amounts in the 2023 

Adjustment.15 For violations that occurred on or before November 2, 2015, the penalty amounts 

in Table I to 17 CFR 201.1001 continue to apply.16

15 The penalty amounts in this Notice are being published in the Federal Register and will not be added to the 

Code of Federal Regulations in accordance with the 2015 Act and 17 CFR 201.1001(b). See 28 U.S.C. 

2461 note Sec. 4(a)(2); 17 CFR 201.1001(b). In addition to being published in the Federal Register, the 

penalty amounts in this Notice will be made available on the Commission’s website at 

https://www.sec.gov/enforce/civil-penalties-inflation-adjustments.htm, as detailed in 17 CFR 201.1001(b). 

This website also lists the penalty amounts for violations that occurred on or before Nov. 2, 2015.

16 17 CFR 201.1001(a).
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III. SMALL BUSINESS REGULATORY ENFORCEMENT FAIRNESS ACT STATUS

The Office of Management and Budget (“OMB”) has concurred in our recommendation 

that this Notice is not a “major rule” as defined by section 251 of the Small Business Regulatory 

Enforcement Fairness Act (“SBREFA”), 5 U.S.C. § 804(2), because (1) it will not have an 

annual effect of $100 million dollars or more on the economy, (2) it does not present a major 

increase in prices for consumers or individual industries, and (3) it does not have significant 

adverse effects on competition, investment, or innovation.17

By the Commission. 

January 5, 2024. 

Vanessa A. Countryman, 

Secretary.

17 See generally SBREFA, Pub. L. No. 104-121 (1996).