Home » Securities Law Updates » New Proposed Legislation » Current Summary
Securities Law Summary
Bill Enhancing SEC Powers Advances in House
Securities Act of 2008
H.R.6513, 07/16/2008
Basic Information
The House referred to its Committee on Financial Services a bill known as the “Securities Act of 2008” that enhances the effectiveness of the Securities and Exchange Commission’s ("SEC") enforcement, corporation finance, trading and markets, investment management, and examination programs. Rep. Paul E. Kanjorski (PA-11), Chairman of the House Subcommittee on Capital Markets, introduced the proposed legislation at the plenary level on July 16, 2008. That same day, the whole body referred the bill to the Financial Services Committee.
Specifically, the bill when enacted into law bars brokers found to have violated federal securities laws in one part of the industry from entering other segments. It also allows the SEC to seek fines in administrative proceedings--not merely federal court--against anybody found to be in violation of the securities laws.
Additionally, it would permit exchanges to establish a second listing tier while preserving blue-sky regulation of the securities, and provide for expanded service of subpoenas in civil actions filed in federal court.
In an opening statement at the bill’s markup, Kanjorski noted that several sections of the legislation have previously passed the full House or the Financial Services Committee, while a majority of the provisions have been recommended to Congress by the commission. The bill seeks to “improve the enforcement authority of the Securities and Exchange Commission and to advance investor protection,” Kanjorski said. “The bill is especially timely given the current state of our capital markets.”
Signifying his support for the bill, SEC Chairman wrote in a letter addressed to the Financial Services Committee that the House legislation will “increase the effectiveness of the commission’s major operational programs. … In particular, the commission’s enforcement program will benefit greatly from the provisions authorizing the nationwide service of subpoenas, authorizing the imposition of collateral bars, and the clarification of enforcement authority.”
Unfortunately, the Senate has yet to act on the matter. In fact, as of this time, it has yet to introduce on its own floor or produce its own version of the bill.
View a PDF of the proposed legislation.Service
Link to this article · 
Send via E-mail · 
Printable Version (opens in new window)
