Sarbanes Oxley Act Section 308

 

SEC. 308. FAIR FUNDS FOR INVESTORS.
 
(a) CIVIL PENALTIES ADDED TO DISGORGEMENT FUNDS FOR THE RELIEF OF VICTIMS.—
 
If in any judicial or administrative action
brought by the Commission under the securities laws (as such
term is defined in section 3(a)(47) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)(47)) the Commission obtains an order
requiring disgorgement against any person for a violation of such
laws or the rules or regulations thereunder, or such person agrees
in settlement of any such action to such disgorgement, and the
Commission also obtains pursuant to such laws a civil penalty
against such person, the amount of such civil penalty shall, on
the motion or at the direction of the Commission, be added to
and become part of the disgorgement fund for the benefit of the
victims of such violation.
 
(b) ACCEPTANCE OF ADDITIONAL DONATIONS.—The Commission
is authorized to accept, hold, administer, and utilize gifts, bequests
and devises of property, both real and personal, to the United
States for a disgorgement fund described in subsection (a). Such
gifts, bequests, and devises of money and proceeds from sales of
other property received as gifts, bequests, or devises shall be deposited
in the disgorgement fund and shall be available for allocation
in accordance with subsection (a).
 
(c) STUDY REQUIRED.—
 
(1) SUBJECT OF STUDY.—The Commission shall review and
analyze—
 
(A) enforcement actions by the Commission over the
five years preceding the date of the enactment of this
Act that have included proceedings to obtain civil penalties
or disgorgements to identify areas where such proceedings
may be utilized to efficiently, effectively, and fairly provide
restitution for injured investors; and
 
(B) other methods to more efficiently, effectively, and
fairly provide restitution to injured investors, including
methods to improve the collection rates for civil penalties
and disgorgements.
 
(2) REPORT REQUIRED.—The Commission shall report its
findings to the Committee on Financial Services of the House
of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate within 180 days after of
the date of the enactment of this Act, and shall use such
findings to revise its rules and regulations as necessary. The
report shall include a discussion of regulatory or legislative
actions that are recommended or that may be necessary to
address concerns identified in the study.
 
(d) CONFORMING AMENDMENTS.—Each of the following provisions
is amended by inserting ‘‘, except as otherwise provided in
section 308 of the Sarbanes-Oxley Act of 2002’’ after ‘‘Treasury
of the United States’’:
 
(1) Section 21(d)(3)(C)(i) of the Securities Exchange Act
of 1934 (15 U.S.C. 78u(d)(3)(C)(i)).
 
(2) Section 21A(d)(1) of such Act (15 U.S.C. 78u-1(d)(1)).
 
(3) Section 20(d)(3)(A) of the Securities Act of 1933 (15
U.S.C. 77t(d)(3)(A)).
 
(4) Section 42(e)(3)(A) of the Investment Company Act of
1940 (15 U.S.C. 80a–41(e)(3)(A)).
 
(5) Section 209(e)(3)(A) of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–9(e)(3)(A)).
 
(e) DEFINITION.—As used in this section, the term
‘‘disgorgement fund’’ means a fund established in any administrative
or judicial proceeding described in subsection (a).
 

 

 
   

 

Sarbanes Oxley Compliance Professionals Association (SOXCPA)

Certified Sarbanes-Oxley Expert (CSOE) - Distance learning and online certification program