Skip to content

Washington, D.C. –The U.S. Senate passed today a cost-cutting bill that could save American investors millions of dollars, according to U.S. Sen. Mike Enzi, R-Wyo., a cosponsor of the measure.

Enzi, the ranking member of the Senate Banking Subcommittee on Securities and Investment, said the Senate unanimously passed, H.R. 1088, the House version of the Competitive Market Supervision Act. The bill would reduce excessive and hidden fees the Securities and Exchange Commission (SEC) is charging investors. Enzi said by allowing individual investors and Americans who participate in mutual funds or 401k plans to pay less to invest, it will give them the opportunity to invest, save and spend more which in turn will be good for the economy as a whole.

The SEC charges investors different types of fees that fund the SEC's oversight and regulation of the financial sector, but the existing fee structure now generates six times more money than is needed to fund the agency. The SEC collected $2.27 billion last year, while the SEC annual budget was only $377 million.

"This legislation comes at the right time. Our economy is in a slump and this bill will allow people to invest money that otherwise would be lumped in with often wasteful government spending programs," Enzi said.

According to the SEC, the typical American family could pay as much as $1,300 in excessive SEC fees over their lifetime. The 1.2 million-member California Public Employees Retirement System, the largest public pension system in the U.S., estimated SEC fee reductions could save public pension plans across the country about $10 million per year in transaction fees.

This legislation originally passed the Senate in March, but was amended slightly to reflect a House version which passed that chamber in June.