To amend the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisors Act of 1940 with respect to the determination of violations.
About This Bill
Committee
Latest Action · August 9, 2024
Referred to the House Committee on Financial Services.
The Securities Enforcement Clarity Act of 2024 changes how federal regulators count violations when enforcing securities laws. Under this bill, the Securities and Exchange Commission would treat multiple separate acts of noncompliance as a single violation when they stem from the same underlying cause, involve the same false statement or omission, or represent a continuing failure to comply. The legislation applies these counting rules across four major federal securities laws: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. This change directly affects securities firms, investment companies, investment advisers, and other regulated entities subject to SEC enforcement actions, as it would typically reduce the number of violations they face for related misconduct and potentially lower resulting penalties. The bill contains no specific funding provisions or implementation timelines.
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