Ask me how I read this bill.
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Adds a new paragraph (4) to section 8A(g) providing that, for purposes of determining the number of violations for imposing penalties, separate acts of noncompliance are treated as a single violation when they result from (A) a common or substantially overlapping originating cause; (B) the same misstatement or omission; or (C) a continuing failure to comply.
Adds a new paragraph (5) to subsection (d) establishing that, for purposes of determining the number of violations for imposing penalties under paragraph (1), separate acts of noncompliance are a single violation when they result from (A) a common or substantially overlapping originating cause; (B) the same misstatement or omission; or (C) a continuing failure to comply.
Makes a single-violation rule for civil penalties under the main federal securities laws. When multiple noncompliant acts come from the same cause, the same misstatement or omission, or are part of a continuing failure to comply, they would be treated as one violation for penalty purposes. It standardizes this approach across the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. It does not change what is illegal, the SEC’s ability to bring cases, or remedies like disgorgement; it only changes how violations are counted when calculating penalties.
Referred to the House Committee on Financial Services.
Introduced January 7, 2025 by Pete Sessions · Last progress January 7, 2025