Rescission of Effective-Upon-Filing Procedure for NMS Plan Fee Amendments

Rescission of Effective-Upon-Filing Procedure for NMS Plan Fee Amendments

The SEC has voted to rescind the rule exception that allowed a proposed NMS plan fee amendment to become effective upon filing, and prior to review and comment. The new procedures will therefore require public notice of any proposed NMS plan fee amendment, an opportunity for public comment, and SEC approval by order before a new or changed fee can be charged.
The SEC also modified the procedures for review of all proposed NMS plans and plan amendments, including fee amendments, to specify timelines for Commission action for each step of the process. Specifically, the amended rule sets forth 90-day and 15-day timeframes for the SEC to send notice to the Federal Register of the filing of proposed NMS plans and plan amendments, respectively. Following notice publication, the SEC must approve, disapprove or institute proceedings on the filing. The period for SEC consideration may be extended up to 240 days from notice publication by SEC order or with plan participant consent, and may be further extended another 60 days (up to 300 days total from notice publication) by SEC order or with plan participant consent.
The final rule can be found here.