Sarbanes Oxley Act Section 604

 

SEC. 604. QUALIFICATIONS OF ASSOCIATED PERSONS
 OF BROKERS AND DEALERS.
 
(a) BROKERS AND DEALERS.—
Section 15(b)(4) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o) is amended—
 
(1) by striking subparagraph (F) and inserting the following:
‘‘(F) is subject to any order of the Commission barring
or suspending the right of the person to be associated with
a broker or dealer;’’; and
 
(2) in subparagraph (G), by striking the period at the
end and inserting the following: ‘‘; or
‘‘(H) is subject to any final order of a State securities
commission (or any agency or officer performing like functions),
State authority that supervises or examines banks, savings
associations, or credit unions, State insurance commission (or
any agency or office performing like functions), an appropriate
Federal banking agency (as defined in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q))), or the National
Credit Union Administration, that—
 
‘‘(i) bars such person from association with an entity
regulated by such commission, authority, agency, or officer,
or from engaging in the business of securities, insurance,
banking, savings association activities, or credit union
activities; or
 
‘‘(ii) constitutes a final order based on violations of
any laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.’’.
 
(b) INVESTMENT ADVISERS.—Section 203(e) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–3(e)) is amended—
 
(1) by striking paragraph (7) and inserting the following:
‘‘(7) is subject to any order of the Commission barring
or suspending the right of the person to be associated with
an investment adviser;’’;
 
(2) in paragraph (8), by striking the period at the end
and inserting ‘‘; or’’; and
 
(3) by adding at the end the following:
‘‘(9) is subject to any final order of a State securities
commission (or any agency or officer performing like functions),
State authority that supervises or examines banks, savings
associations, or credit unions, State insurance commission (or
any agency or office performing like functions), an appropriate
Federal banking agency (as defined in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q))), or the National
Credit Union Administration, that—
 
‘‘(A) bars such person from association with an entity
regulated by such commission, authority, agency, or officer,
or from engaging in the business of securities, insurance,
banking, savings association activities, or credit union
activities; or
 
‘‘(B) constitutes a final order based on violations of
any laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.’’.
 
(c) CONFORMING AMENDMENTS.—
 
(1) SECURITIES EXCHANGE ACT OF 1934.—The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended—
(A) in section 3(a)(39)(F) (15 U.S.C. 78c(a)(39)(F))—
 
(i) by striking ‘‘or (G)’’ and inserting ‘‘(H), or (G)’’;
and
 
(ii) by inserting ‘‘, or is subject to an order or
finding,’’ before ‘‘enumerated’’;
 
(B) in each of section 15(b)(6)(A)(i) (15 U.S.C.
78o(b)(6)(A)(i)), paragraphs (2) and (4) of section 15B(c)
(15 U.S.C. 78o–4(c)), and subparagraphs (A) and (C) of
section 15C(c)(1) (15 U.S.C. 78o–5(c)(1))—
 
(i) by striking ‘‘or (G)’’ each place that term appears
and inserting ‘‘(H), or (G)’’; and
 
(ii) by striking ‘‘or omission’’ each place that term
appears, and inserting ‘‘, or is subject to an order
or finding,’’; and
 
(C) in each of paragraphs (3)(A) and (4)(C) of section
17A(c) (15 U.S.C. 78q–1(c))—
 
(i) by striking ‘‘or (G)’’ each place that term appears
and inserting ‘‘(H), or (G)’’; and
 
(ii) by inserting ‘‘, or is subject to an order or
finding,’’ before ‘‘enumerated’’ each place that term
appears.
 
(2) INVESTMENT ADVISERS ACT OF 1940.—Section 203(f) of
the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(f)) is
amended—
 
(A) by striking ‘‘or (8)’’ and inserting ‘‘(8), or (9)’’; and
 
(B) by inserting ‘‘or (3)’’ after ‘‘paragraph (2)’’.

 
   

 

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