1808 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 

38 17 CFR 200.30–3(a)(12). 

1Public Law 114–74 Sec. 701, 129 Stat. 599–601 

(Nov. 2, 2015), codified at 28 U.S.C. 2461 note. 

2Public Law 101–410, 104 Stat. 890–892 (1990), 

codified at 28 U.S.C. 2461 note. 3Public Law 104–134, Title III, § 31001(s)(1), 110 

Stat. 1321–373 (1996), codified at 28 U.S.C. 2461 

note. 

4See Release Nos. 33–7361, 34–37912, IA–1596, 

IC–22310, dated November 1, 1996 (effective 

December 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 January 31, 2001 (effective February 

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 

February 9, 2005 (effective February 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 February 25, 2009 

(effective March 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 February 27, 2013 (effective March 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. 

6Release Nos. 33–10276; 34–79749; IA–4599; IC– 

32414 (effective Jan. 18, 2017). 

7Release Nos. 33–10740; 34–87905; IA–5428; IC– 

33740 (effective Jan. 15, 2020). 

8Release Nos. 33–10918; 34–90874; IA–5664; IC– 

34166 (effective Jan. 15, 2021). 

9 28 U.S.C. 2461 note Sec. 3(2). 

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

11The 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)]. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.38

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–00381 Filed 1–11–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release Nos. 33–11021; 34–93925; IA– 

5938; IC–34466] 

Adjustments to Civil Monetary Penalty 

Amounts 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Notice. 

SUMMARY: The Securities and Exchange 

Commission (the ‘‘Commission’’) is 

publishing this notice (the ‘‘Notice’’) 

pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (the ‘‘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 (the ‘‘Exchange Act’’), the 

Investment Company Act of 1940, the 

Investment Advisers Act of 1940, and 

certain penalties under the SarbanesOxley Act of 2002. These amounts are 

effective beginning on January 15, 2022, 

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 Civil Penalties 

Inflation Adjustment Act of 1990 (the 

‘‘Inflation Adjustment Act’’).2 The 

Inflation Adjustment Act previously had 

been amended by the Debt Collection 

Improvement Act of 1996 (the ‘‘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 (the ‘‘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 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 8, 2020 (‘‘2020 

Adjustment’’) 7 and January 8, 2021 

(‘‘2021 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 (the 

‘‘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

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. 


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Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 1809 

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

13Office of Management and Budget, 

Implementation of Penalty Inflation Adjustments 

for 2022, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(December 15, 2021), available at https://

www.whitehouse.gov/wp-content/uploads/2021/12/ 

M-22-07.pdf. This multiplier represents the 

percentage increase between the October 2020 CPI– 

U and the October 2021 CPI–U, plus 1. 

14 15 U.S.C. 78u–1(a)(3). 

Pursuant to the 2015 Act, the penalty 

amounts in the 2021 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 2020 

and the October 2021 CPI–U.12 OMB has 

provided its calculation of this 

multiplier (the ‘‘CPI–U Multiplier’’) to 

agencies.13 The new penalty amounts 

are determined by multiplying the 

amounts in the 2021 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 2021 Adjustment to 

$2,166,279. To determine the new CMP 

under this provision, the Commission 

multiplies this amount by the CPI–U 

Multiplier of 1.06222, and rounds to the 

nearest dollar. Thus, the new CMP for 

Exchange Act Section 21A(a)(3) is 

$2,301,065. 

Below is the Commission’s 

calculation of the new penalty amounts 

for the penalties it administers: 

U.S. code citation Civil monetary penalty description 

2021 

Adjustment 

penalty 

amounts 

CPI–U 

multiplier 

2022 Adjusted 

penalty 

amounts 

15 U.S.C. 77h–1(g) (Securities Act 

Sec. 8A(g)).

For natural person ....................................................

For any other person ................................................

$8,928 

89,291 

1.06222 

1.06222 

$9,484 

94,847 

For natural person/fraud ........................................... 89,291 1.06222 94,847 

For any other person/fraud ....................................... 446,455 1.06222 474,233 

For natural person/fraud/substantial losses or risk 

of losses to others or gains to self.

178,582 1.06222 189,693 

For any other person/fraud/substantial losses or 

risk of losses to others or gain to self.

863,145 1.06222 916,850 

15 U.S.C. 77t(d) (Securities Act Sec. 

20(d)).

For natural person ....................................................

For any other person ................................................

9,753 

97,523 

1.06222 

1.06222 

10,360 

103,591 

For natural person/fraud ........................................... 97,523 1.06222 103,591 

For any other person/fraud ....................................... 487,616 1.06222 517,955 

For natural person/fraud/substantial losses or risk 

of losses to others.

195,047 1.06222 207,183 

For any other person/fraud/substantial losses or 

risk of losses to others.

975,230 1.06222 1,035,909 

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

Sec. 21(d)(3)).

For natural person ....................................................

For any other person ................................................

9,753 

97,523 

1.06222 

1.06222 

10,360 

103,591 

For natural person/fraud ........................................... 97,523 1.06222 103,591 

For any other person/fraud ....................................... 487,616 1.06222 517,955 

For natural person/fraud/substantial losses or risk 

of losses to others or gains to self.

195,047 1.06222 207,183 

For any other person/fraud/substantial losses or 

risk of losses to others or gain to self.

975,230 1.06222 1,035,909 

15 U.S.C. 78u–1(a)(3) (Exchange Act 

Sec. 21A(a)(3)).

Insider Trading—controlling person .......................... 2,166,279 1.06222 2,301,065 

15 U.S.C. 78u–2 (Exchange Act Sec. 

21B).

For natural person ....................................................

For any other person ................................................

9,753 

97,523 

1.06222 

1.06222 

10,360 

103,591 

For natural person/fraud ........................................... 97,523 1.06222 103,591 

For any other person/fraud ....................................... 487,616 1.06222 517,955 

For natural person/fraud/substantial losses or risk 

of losses to others.

195,047 1.06222 207,183 

For any other person/fraud/substantial losses or 

risk of losses to others.

975,230 1.06222 1,035,909 

15 U.S.C. 78ff(b) (Exchange Act Sec. 

32(b)).

Exchange Act/failure to file information documents, 

reports.

576 1.06222 612 

15 U.S.C. 78ff(c)(1)(B) (Exchange Act 

Sec. 32(c)(1)(B)).

Foreign Corrupt Practices—any issuer ..................... 21,663 1.06222 23,011 

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.21,663 1.06222 23,011 

15 U.S.C. 80a–9(d) (Investment Company Act Sec. 9(d)).For natural person ....................................................

For any other person ................................................

9,753 

97,523 

1.06222 

1.06222 

10,360 

103,591 

For natural person/fraud ........................................... 97,523 1.06222 103,591 

For any other person/fraud ....................................... 487,616 1.06222 517,955 

For natural person/fraud/substantial losses or risk 

of losses to others or gains to self.

195,047 1.06222 207,183 

For any other person/fraud/substantial losses or 

risk of losses to others or gain to self.

975,230 1.06222 1,035,909 

15 U.S.C. 80a–41(e) (Investment 

Company Act Sec. 42(e)).

For natural person ....................................................

For any other person ................................................

9,753 

97,523 

1.06222 

1.06222 

10,360 

103,591 

For natural person/fraud ........................................... 97,523 1.06222 103,591 

For any other person/fraud ....................................... 487,616 1.06222 517,955 

For natural person/fraud/substantial losses or risk 

of losses to others.

195,047 1.06222 207,183 


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1810 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 

15The 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/civilpenalties-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 November 2, 2015. 

16 17 CFR 201.1001(a). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 90088 

(October 5, 2020), 85 FR 64186 (October 9, 2020) 

(SR–NYSEArca–2020–85) (‘‘SR–NYSEArca–2020– 

85’’). 

U.S. code citation Civil monetary penalty description 

2021 

Adjustment 

penalty 

amounts 

CPI–U 

multiplier 

2022 Adjusted 

penalty 

amounts 

For any other person/fraud/substantial losses or 

risk of losses to others.

975,230 1.06222 1,035,909 

15 U.S.C. 80b–3(i) (Investment Advisers Act Sec. 203(i)).For natural person ....................................................

For any other person ................................................

9,753 

97,523 

1.06222 

1.06222 

10,360 

103,591 

For natural person/fraud ........................................... 97,523 1.06222 103,591 

For any other person/fraud ....................................... 487,616 1.06222 517,955 

For natural person/fraud/substantial losses or risk 

of losses to others or gains to self.

195,047 1.06222 207,183 

For any other person/fraud/substantial losses or 

risk of losses to others or gain to self.

975,230 1.06222 1,035,909 

15 U.S.C. 80b–9(e) (Investment Advisers Act Sec. 209(e)).For natural person ....................................................

For any other person ................................................

9,753 

97,523 

1.06222 

1.06222 

10,360 

103,591 

For natural person/fraud ........................................... 97,523 1.06222 103,591 

For any other person/fraud ....................................... 487,616 1.06222 517,955 

For natural person/fraud/substantial losses or risk 

of losses to others.

195,047 1.06222 207,183 

For any other person/fraud/substantial losses or 

risk of losses to others.

975,230 1.06222 1,035,909 

15 U.S.C. 7215(c)(4)(D)(i) (SarbanesOxley Act Sec. 105(c)(4)(D)(i)).For natural person ....................................................

For any other person ................................................

143,621 

2,872,441 

1.06222 

1.06222 

152,557 

3,051,164 

15 U.S.C. 7215(c)(4)(D)(ii) (SarbanesOxley Act Sec. 105(c)(4)(D)(ii)).For natural person ....................................................

For any other person ................................................

1,077,165 

21,543,299 

1.06222 

1.06222 

1,144,186 

22,883,723 

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 2021 

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

By the Commission. 

Dated: January 6, 2022. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2022–00384 Filed 1–11–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93918; File No. SR– 

NYSEARCA–2021–107] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extending the Expiration 

Date of the Temporary Amendments to 

Rules 10.9261 and 10.9830 

January 6, 2022. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on December 

27, 2021, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes extending the 

expiration date of the temporary 

amendments to Rules 10.9261 and 

10.9830 as set forth in SR–NYSEArca– 

2020–85 from December 31, 2021, to 

March 31, 2022, in conformity with 

recent changes by the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’). 

The proposed rule change would not 

make any changes to the text of NYSE 

Arca Rules 10.9261 and 10.9830. The 

proposed rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes extending the 

expiration date of the temporary 

amendments as set forth in SR– 

NYSEArca–2020–85 4 to Rules 10.9261 

(Evidence and Procedure in Hearing) 


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