This bill amends four federal securities statutes: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. It adds language in the enforcement sections of each Act saying that, for purposes of counting violations when imposing penalties, separate acts of noncompliance are to be treated as a single violation when the acts result from (A) a common or substantially overlapping originating cause; (B) the same misstatement or omission; or (C) a continuing failure to comply. The bill text lists the specific sections of each Act that are changed. The bill was introduced by Representative Pete Sessions and referred to the House Committee on Financial Services on January 7, 2025.
If you are an issuer, investment company, or investment adviser, this bill changes how regulators count multiple noncompliance acts when deciding the number of violations for penalties. It directs agencies to treat related or repeated failures as one violation in the three listed situations. The change applies to enforcement proceedings under the amended sections.
No publicly available information on estimated costs, budget effects, or changes in penalty revenue is included in the bill text or provided metadata.
No publicly available information in the bill text or provided metadata describing proponents' stated views or reasons for the changes.
No publicly available information in the bill text or provided metadata describing opponents' stated views or objections.