US enhances enforcement and investor protection
House approves measure to enhance SEC enforcement and investor protection
WASHINGTON, DC – The US House of Representatives has passed legislation that will provide new investor protection and bolster the Securities and Exchange Commission’s (SEC) enforcement programme.
The Securities Act, 2008, sponsored by republican Paul Kanjorski with bipartisan support from House Financial Services Committee chairman Barney Frank and ranking member Spencer Bachus, incorporates recommendations made by the SEC to Congress to enhance the securities laws and give the SEC’s Enforcement Division increased flexibility and resources to pursue securities fraudsters and other wrongdoers in the markets.
“This bill provides new protections for investors during a very tumultuous time in our markets,” says Bachus. “The Securities Act strengthens investor protection, enhances capital markets competitiveness and increases the SEC’s effectiveness. It will prevent bad actors from moving throughout the securities industry to perpetuate fraud and provide the commission with new tools to help injured investors. Regulators will have to make financial reporting more understandable and ensure that our capital markets can compete on a level playing field with their foreign counterparts.”
SEC chairman Christopher Cox applauds the move. “Policing the markets and keeping investors’ money safe has never been more important, and so this legislation comes at a critical time,” he says.
Under Cox, the SEC’s enforcement staff has increased to 34% of the SEC workforce from 32% in 2005 and 29% in the 1990s. This investment in investor protection has paid dividends. In the past three years, the SEC has achieved the greatest number of corporate penalties in any year in SEC history, the second highest number of enforcement actions brought in a single year, and the second highest single-year total for penalties and disgorgements. The SEC claims the Securities Act will help it to further strengthen this record through the “elimination of duplication and extraneous responsibilities for SEC enforcement staff in their pursuit of wrongdoers, by giving the SEC authority to obtain financial penalties from wrongdoers in administrative proceedings without needing to file a separate civil action in federal court”.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
UK investment firms feeling the heat on prudential rules
Signs firms are falling behind FCA’s expectations on wind-down and liquidity risk management
The American way: a stress-test substitute for Basel’s IRRBB?
Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure
Industry warns CFTC against rushing to regulate AI for trading
Vote on workplan pulled amid calls to avoid duplicating rules from other regulatory agencies
Bank of Communications moves early to meet TLAC requirements
China Construction Bank becomes last China G-Sib to release TLAC plans
Most read
- Top 10 operational risks for 2024
- Japanese megabanks shun internal models as FRTB bites
- LCH issued highest cash call in more than five years