It’s not just eggs and milk that are getting more expensive. In one of the regulator’s first notices in 2022, SEC penalties will increase due to inflation.
The change is based on the difference between the consumer price index from October 2020 to 2021. For penalties levied by the SEC, that change will mean at least 6 percent higher fees across the board. From the notice:
… 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.
This penalty increase is reflective of trends in other sectors, as inflation climbed by more than 6 percent as of late 2021, the highest in nearly 40 years for Americans. From the Wall Street Journal:
The highs signal that price pressures are broadening beyond the goods and services directly affected by Covid and related supply-chain bottlenecks. For example, apparel prices began picking up early in the pandemic, after a long deflationary stint. Housing costs are also climbing, driven by a leap in prices for home energy, furniture and, increasingly, rent.
And inflation has come for those who run afoul of compliance regulations, as well, as penalties increase. One way to avoid the larger penalties is to have a comprehensive compliance program, including software such as that from SmartRIA, that eases the burden on your team to keep records and stay in line with regulations. Schedule a demo now.