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The Daily

SEC OKs $253 Million Increase in PCAOB Support Fees

Chris Gaetano
Published Date:
Mar 15, 2016
board_chairman_doty_CroppedThe Securities and Exchange Commission (SEC) set the 2016 budget for the Public Company Accounting Oversight Board (2016) at $257 million. Of this, $253 million would be from accounting support fees. Public companies would be assessed $220.9 million, and broker dealers would pay $32.4 million. The new budget overall represents a 2.7 increase from last year's. The accounting support fee is about 12 percent higher than last year's. 
The bulk of the PCAOB's funding comes from fees levied on regulated entities. These fees apply to equity issuers with average U.S. market capitalization greater than $75 million and investment companies with net asset values greater than $500 million. The fees have also applied to broker-dealers with average quarterly net capital greater than $5 million since they were moved into PCAOB jurisdiction in 2010. 
Shares of the fee are calculated as average, monthly market capitalization during the preceding calendar year, divided by the sum of the average, monthly market capitalizations of all equity Issuers and investment company Issuers during the preceding calendar year. 
For broker-dealers, shares are calculated as average, quarterly tentative net capital during the preceding calendar year, divided by the sum of the average, quarterly tentative net capital of all broker-dealers under PCAOB jurisdiction. 
“The PCAOB’s work to oversee auditors of public companies and SEC registered broker-dealers is critical to investor protection and our markets,” said SEC Chair Mary Jo White. “The PCAOB has another busy year ahead as it continues to conduct inspections of auditors of issuers and broker-dealers, works to develop its permanent broker-dealer audit inspection program, and advances numerous standard-setting initiatives. The Commission must continue to make sure the PCAOB has the necessary funds to fulfill all aspects of its important mission.”