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Sarbanes Oxley
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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).
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