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New Rules for Calculating Penalties in Securities Law Enforcement.

This Act modifies how the Securities and Exchange Commission (SEC) calculates penalties for financial firms and advisors. It establishes that multiple related acts of noncompliance stemming from the same error or continuous failure are counted as a single violation. This change primarily affects regulated entities but indirectly influences investor protection by potentially altering the severity of financial penalties imposed for systemic failures.
Key points
Standardizing violation counts: Multiple related failures or omissions resulting from a common cause are now treated as a single violation when determining penalties.
The change applies across major securities laws (1933, 1934, Investment Company, Investment Advisors Acts).
This aims to provide clarity in enforcement actions, potentially reducing the total financial penalties for regulated entities facing systemic noncompliance charges.
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Additional Information
Print number: 118_HR_9342
Sponsor: Rep. Sessions, Pete [R-TX-17]
Process start date: 2024-08-09
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Securities Enforcement Clarity Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9342.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-08-09.

What are the main provisions?

Key points include:

  • Standardizing violation counts: Multiple related failures or omissions resulting from a common cause are now treated as a single violation when determining penalties.
  • The change applies across major securities laws (1933, 1934, Investment Company, Investment Advisors Acts).
  • This aims to provide clarity in enforcement actions, potentially reducing the total financial penalties for regulated entities facing systemic noncompliance charges.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sessions, Pete [R-TX-17].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy Courts and Law