Securities Act of 2008 Inching Closer to Vote in U.S. House

The vote planned for Tuesday in the U.S. House of Representatives on the Securities Act of 2008 has been put off until later this week, according to Dow Jones Newswires.  The Act is intended to bolster the SEC’s enforcement efforts.  Key provisions of the Act include:

  • authorizing the SEC to assess and impose civil penalties in a cease and desist proceeding;
  • creating three tiers of increasing civil penalties for acts or omissions of increasing gravity;
  • requiring the SEC, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board to give oral testimony annually to certain congressional committees on efforts to reduce the complexity in financial reporting to provide more accurate and clear financial information to investors; and
  • allowing nationwide service of subpoenas, without application to the court or a showing of cause, in any action instituted by the SEC.

Rep. Paul Kanjorski, D-Pa., reportedly stated on Tuesday that the Act has bipartisan support.

Read the Dow Jones Newswires article

Read the Congressional Research Service summary of the Act