H.R. 216

119 HR 216 IH: Securities Enforcement Clarity Act of 2025
 U.S. House of Representatives
 2025-01-07
 text/xml
 EN
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 I  119th CONGRESS  1st Session  H. R. 216  IN THE HOUSE OF REPRESENTATIVES   January 7, 2025   Mr. Sessions  introduced the following bill; which was referred to the  Committee on Financial Services    A BILL
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.
1.
Short title
This Act may be cited as the   Securities Enforcement Clarity Act of 2025   or the   SEC Act of 2025  .
2.
Determination of the number of violations
(a)
Securities Act of 1933
The Securities Act of 1933 is amended—
(1)
in section 8A(g) ( 15 U.S.C. 77h–1(g) ), by adding at the end the following:
(4)
Determination of number of violations
For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—
(A)
a common or a substantially overlapping originating cause;
(B)
the same misstatement or omission; or
(C)
a continuing failure to comply.
 ; and
(2)
in section 20(d) ( 15 U.S.C. 77t(d) ), by adding at the end the following:
(5)
Determination of number of violations
For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—
(A)
a common or a substantially overlapping originating cause;
(B)
the same misstatement or omission; or
(C)
a continuing failure to comply.
 .
(b)
Securities Exchange Act of 1934
The Securities Exchange Act of 1934 is amended—
(1)
in section 21(d)(3) ( 15 U.S.C. 78u(d)(3) ), by adding at the end the following:
(E)
Determination of number of violations
For purposes of determining the number of violations for which to impose penalties under subparagraph (A)(i), separate acts of noncompliance are a single violation when the acts are the result of—
(i)
a common or a substantially overlapping originating cause;
(ii)
the same misstatement or omission; or
(iii)
a continuing failure to comply.
 ;
(2)
in section 21B(a) ( 15 U.S.C. 78u–2(b) ), by adding at the end the following:
(3)
Determination of number of violations, acts, or omissions
For purposes of determining the number of violations, acts, or omissions for which to impose penalties under this subsection, separate acts of noncompliance are a single violation, act, or omission when the acts are the result of—
(A)
a common or a substantially overlapping originating cause;
(B)
the same misstatement or omission; or
(C)
a continuing failure to comply.
 ; and
(3)
in section 32 ( 15 U.S.C. 78ff ), by adding at the end the following:
(d)
Determination of number of violations
For purposes of determining the number of violations for which to impose penalties under subsection (c), separate acts of noncompliance are a single violation when the acts are the result of—
(1)
a common or a substantially overlapping originating cause;
(2)
the same misstatement or omission; or
(3)
a continuing failure to comply.
 .
(c)
Investment Company Act of 1940
The Investment Company Act of 1940 is amended—
(1)
in section 9(d) ( 15 U.S.C. 80a–9(d) ), by adding at the end the following:
(5)
Determination of number of violations, acts, or omissions
For purposes of determining the number of violations, acts, or omissions for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation, act, or omission when the acts are the result of—
(A)
a common or a substantially overlapping originating cause;
(B)
the same misstatement or omission; or
(C)
a continuing failure to comply.
 ; and
(2)
in section 42(e) ( 15 U.S.C. 80a–41(e) ), by adding at the end the following:
(5)
Determination of number of violations
For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—
(A)
a common or a substantially overlapping originating cause;
(B)
the same misstatement or omission; or
(C)
a continuing failure to comply.
 .
(d)
Investment Advisors Act of 1940
The Investment Advisers Act of 1940 is amended—
(1)
in section 203(i) ( 15 U.S.C. 80b–3(i) ), by adding at the end the following:
(5)
Determination of number of violations, acts, or omissions
For purposes of determining the number of violations, acts, or omissions for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation, act, or omission when the acts are the result of—
(A)
a common or a substantially overlapping originating cause;
(B)
the same misstatement or omission; or
(C)
a continuing failure to comply.
 ; and
(2)
in section 209(e) ( 15 U.S.C. 80b–9(e) ), by adding at the end the following:
(5)
Determination of number of violations
For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—
(A)
a common or a substantially overlapping originating cause;
(B)
the same misstatement or omission; or
(C)
a continuing failure to comply.
 .