Investor Protection and Capital Markets Fairness Act

IIB 116TH CONGRESS 1ST SESSION H. R. 4344 IN THE SENATE OF THE UNITED STATES NOVEMBER 19, 2019 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To amend the Securities Exchange Act of 1934 to allow the Securities and Exchange Commission to seek and Federal courts to grant disgorgement of unjust enrich- ment, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:22 Nov 19, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4344.RFS H4344 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 4344 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Investor Protection 2 and Capital Markets Fairness Act’’. 3 SEC. 2. ADDITIONAL RELIEF. 4 (a) IN GENERAL.—Section 21(d) of the Securities 5 Exchange Act of 1934 (15 U.S.C. 78u(d)) is amended by 6 adding at the end the following: 7 ‘‘(7) ADDITIONAL RELIEF.— 8 ‘‘(A) IN GENERAL.—In any action or pro- 9 ceeding brought or instituted by the Commis- 10 sion under any provision of the securities laws, 11 the Commission may seek, and any Federal 12 court may grant the following additional relief: 13 ‘‘(i) Disgorgement in the amount of 14 any unjust enrichment obtained as a result 15 of the act or practice with respect to which 16 the Commission is bringing such an action 17 or proceeding. 18 ‘‘(ii) Injunctions, including officer and 19 director bars. 20 ‘‘(B) RULE OF CONSTRUCTION.—Addi- 21 tional relief sought under this paragraph may 22 not be construed to be a civil fine, penalty, or 23 forfeiture subject to chapter 163 of part VI of 24 title 28, United States Code. 25 VerDate Sep 11 2014 22:22 Nov 19, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4344.RFS H4344 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 4344 RFS ‘‘(C) STATUTE OF LIMITATIONS.—A Fed- 1 eral court may not issue relief under this para- 2 graph if the action or proceeding brought or in- 3 stituted by the Commission was commenced 4 more than 14 years after the alleged violation.’’. 5 (b) EFFECTIVE DATE.—The amendment made by 6 this section shall apply with respect to any actions or pro- 7 ceedings pending or commenced on or after the date of 8 the enactment of this section. 9 (c) REPORT.— 10 (1) IN GENERAL.—Not later than 10 years 11 after the date of the enactment of this Act, the Se- 12 curities Exchange Commission shall submit to Con- 13 gress data about each enforcement action brought by 14 the Commission in the 10 years following the date 15 of the enactment of this Act. 16 (2) CONTENTS.—In submitting data pursuant 17 to paragraph (1), the Commission shall— 18 (A) with regard to each enforcement ac- 19 tion— 20 (i) categorize the type of enforcement 21 action; 22 (ii) categorize the type of issuer in- 23 volved in the enforcement action; 24 VerDate Sep 11 2014 22:22 Nov 19, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4344.RFS H4344 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 4344 RFS (iii) identify the approximate duration 1 of the misconduct that gave rise to the en- 2 forcement action; and 3 (iv) identify the approximate duration 4 of the investigation; and 5 (B) identify the 10 enforcement actions 6 with the longest durations of misconduct that 7 gave rise to enforcement actions. 8 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 9 The budgetary effects of this Act, for the purpose of 10 complying with the Statutory Pay-As-You-Go Act of 2010, 11 shall be determined by reference to the latest statement 12 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 13 Act, submitted for printing in the Congressional Record 14 by the Chairman of the House Budget Committee, pro- 15 vided that such statement has been submitted prior to the 16 vote on passage. 17 Passed the House of Representatives November 18, 2019. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 22:22 Nov 19, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4344.RFS H4344 pamtmann on DSKBC07HB2PROD with BILLS