S.Amdt. 1507
What it does: Adds SEC. 11. ACCESS TO INTERCEPTED WIRE, ORAL, OR ELECTRONIC COMMUNICATIONS RELATING TO SECURITIES FRAUD at the end of the bill
Sen. Jack Reed (D-RI)What it changes
1 change to S. 2038 · shown in the bill's text
Adds SEC. 11. ACCESS TO INTERCEPTED WIRE, ORAL, OR ELECTRONIC COMMUNICATIONS RELATING TO SECURITIES FRAUD at the end of the bill
Adds a sectionIn S. 2038 · Placed on Calendar Senate
(f) Rule of Construction.--Nothing in this section shall be construed to be in derogation of existing laws, regulations, or ethical obligations of Federal employees.
Inserted: SEC. 11. ACCESS TO INTERCEPTED WIRE, ORAL, OR ELECTRONIC COMMUNICATIONS RELATING TO SECURITIES FRAUD.
Inserted: (a) Authorization for Interception of Wire, Oral, or Electronic Communications Relating to Securities Fraud.--Section 2516(1) of title 18, United States Code, is amended--
Inserted: (1) in paragraph (r), by striking "or" at the end;
Inserted: (2) by redesignating paragraph (s) as paragraph (t); and
Inserted: (3) by inserting after paragraph (r) the following:
Inserted: "(s) any violation of section 1348 of this title (relating to securities fraud); or".
Inserted: (b) Authorization for Disclosure and Use of Intercepted Wire, Oral, or Electronic Communications Relating to Securities Fraud.--Section 2517 of title 18, United States Code, is amended--
Inserted: (1) in subsection (1), by inserting ", or to an officer of the Securities and Exchange Commission," after "to another investigative or law enforcement officer"; and
Inserted: (2) in subsection (2), by inserting ", or officer of the Securities and Exchange Commission," after "investigative or law enforcement officer".
Inserted: SEC. 12. INSIDER TRADING STATUTE OF LIMITATIONS.
Inserted: Section 21A(d)(5) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-1(d)(5)) is amended to read as follows:
Inserted: "(5) Statute of limitations.--No action may be brought under this section after the later of--
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Inserted: "(A) 5 years after the date of the subject purchase or sale; or
Inserted: "(B) 2 years after the date on which the Commission discovers the violative conduct.".
Inserted: SEC. 13. INSIDER TRADING PENALTIES.
Inserted: (a) Insider Trading Penalties Under Section 21A(a)(1) of the Securities Exchange Act of 1934.--Section 21A(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-1(a)(1)) is amended--
Inserted: (1) in subparagraph (A), by striking "and" at the end;
Inserted: (2) in subparagraph (B), by striking the period at the end and inserting "; and"; and
Inserted: (3) adding at the end the following:
Inserted: "(C) may, in any action instituted pursuant to section 8A of the Securities Act of 1933, or section 21C of this title, impose a civil penalty to be paid by the person who committed such violation, or who, subject to subsection (b)(1) of this section, directly or indirectly controlled the person who committed such violation.".
Inserted: (b) Insider Trading Penalties Where No Profits Gained or Losses Avoided.--
Inserted: (1) Securities exchange act of 1934.--The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended--
Inserted: (A) in section 21(d)(3)(A) (15 U.S.C. 78u(d)(3)(A)), by inserting "that resulted in profits gained or losses avoided" after "penalty pursuant to section 21A"; and
Inserted: (B) in section 21B(a)(2)(A) (15 U.S.C. 78u-2(a)(2)(A)), by inserting ", other than by committing a violation subject to a penalty pursuant to section 21A that resulted in profits gained or losses avoided" after "rule or regulation issued under this title".
Inserted: (2) Securities act of 1933.--The Securities Act of 1933 (15 U.S.C. 77a et seq.) is amended--
Inserted: (A) in section 8A(g)(1)(A)(i) (15 U.S.C. 77h-1(g)(1)(A)(i)), by inserting ", other than by committing a violation subject to a penalty pursuant to section 21A of the Securities Exchange Act of 1934 that resulted in profits gained or losses avoided" after "rule or regulation issued under this title"; and
Inserted: (B) in section 20(d)(1) of the (15 U.S.C. 77t(d)(1)), by inserting "that resulted in profits gained or losses avoided" after "penalty pursuant to section 21A of the Securities Exchange Act of 1934".
Inserted: SEC. 14. EX PARTE FREEZE AUTHORITY FOR OFFSHORE INSIDER TRADING PROFITS.
Inserted: Section 21C(c)(3) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-3(c)(3)) is amended--
Inserted: (1) in subparagraph (A), by striking "(A) In general" and inserting "(A) Temporary freeze of extraordinary payments by an issuer";
Inserted: (2) by redesignating subparagraph (B) as subparagraph (C); and
Inserted: (3) by inserting after subparagraph (A) the following:
Inserted: "(B) Temporary freeze in insider trading investigations.--
Inserted: "(i) Issuance of temporary order.--If the Commission finds that there is reason to believe that a violation described in section 21A has occurred, and that the person engaging in the purchase or sale constituting the potential violation is located outside of the United States, the Commission may impose a temporary order requiring any registered broker or dealer to freeze the brokerage accounts of such person at such broker or dealer for a period not to exceed 30 days after the date of entry of the order.
Inserted: "(ii) Standard.--A temporary order may be entered under clause (i) without notice, unless the Commission determines that notice and hearing prior to entry of the order would be in the public interest.
Inserted: "(iii) Effective period.--A temporary order issued under clause (i) shall--
Inserted: "(I) become effective immediately;
Inserted: "(II) be served upon each registered broker or dealer maintaining accounts subject to the order; and
Inserted: "(III) unless set aside, limited, or suspended by the Commission or by a court of competent jurisdiction, remain effective and enforceable for the period specified in the order, but for not longer than 30 days after the date of entry of the order.
Inserted: "(iv) Violation of temporary order.--A violation of a temporary order issued under clause (i) shall be deemed a violation of this title.".
Original wording
At the end, add the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 1507. Mr. REED submitted an amendment intended to be proposed by him to the bill S. 2038, to prohibit Members of Congress and employees of Congress from using nonpublic information derived from their official positions for personal benefit, and for other purposes; which was ordered to lie on the table; as follows:
At the end, add the following:
SEC. 11. ACCESS TO INTERCEPTED WIRE, ORAL, OR ELECTRONIC COMMUNICATIONS RELATING TO SECURITIES FRAUD.
(a) Authorization for Interception of Wire, Oral, or Electronic Communications Relating to Securities Fraud.--Section 2516(1) of title 18, United States Code, is amended--
(1) in paragraph (r), by striking “or” at the end;
(2) by redesignating paragraph (s) as paragraph (t); and
(3) by inserting after paragraph (r) the following:
“(s) any violation of section 1348 of this title (relating to securities fraud); or”.
(b) Authorization for Disclosure and Use of Intercepted Wire, Oral, or Electronic Communications Relating to Securities Fraud.--Section 2517 of title 18, United States Code, is amended--
(1) in subsection (1), by inserting “, or to an officer of the Securities and Exchange Commission,” after “to another investigative or law enforcement officer”; and
(2) in subsection (2), by inserting “, or officer of the Securities and Exchange Commission,” after “investigative or law enforcement officer”.
SEC. 12. INSIDER TRADING STATUTE OF LIMITATIONS.
Section 21A(d)(5) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-1(d)(5)) is amended to read as follows:
“(5) Statute of limitations.--No action may be brought under this section after the later of--
“(A) 5 years after the date of the subject purchase or sale; or
“(B) 2 years after the date on which the Commission discovers the violative conduct.”.
SEC. 13. INSIDER TRADING PENALTIES.
(a) Insider Trading Penalties Under Section 21A(a)(1) of the Securities Exchange Act of 1934.--Section 21A(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-1(a)(1)) is amended--
(1) in subparagraph (A), by striking “and” at the end;
(2) in subparagraph (B), by striking the period at the end and inserting “; and”; and
(3) adding at the end the following:
“(C) may, in any action instituted pursuant to section 8A of the Securities Act of 1933, or section 21C of this title, impose a civil penalty to be paid by the person who committed such violation, or who, subject to subsection (b)(1) of this section, directly or indirectly controlled the person who committed such violation.”.
(b) Insider Trading Penalties Where No Profits Gained or Losses Avoided.--
(1) Securities exchange act of 1934.--The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended--
(A) in section 21(d)(3)(A) (15 U.S.C. 78u(d)(3)(A)), by inserting “that resulted in profits gained or losses avoided” after “penalty pursuant to section 21A”; and
(B) in section 21B(a)(2)(A) (15 U.S.C. 78u-2(a)(2)(A)), by inserting “, other than by committing a violation subject to a penalty pursuant to section 21A that resulted in profits gained or losses avoided” after “rule or regulation issued under this title”.
(2) Securities act of 1933.--The Securities Act of 1933 (15 U.S.C. 77a et seq.) is amended--
(A) in section 8A(g)(1)(A)(i) (15 U.S.C. 77h-1(g)(1)(A)(i)), by inserting “, other than by committing a violation subject to a penalty pursuant to section 21A of the Securities Exchange Act of 1934 that resulted in profits gained or losses avoided” after “rule or regulation issued under this title”; and
(B) in section 20(d)(1) of the (15 U.S.C. 77t(d)(1)), by inserting “that resulted in profits gained or losses avoided” after “penalty pursuant to section 21A of the Securities Exchange Act of 1934”.
SEC. 14. EX PARTE FREEZE AUTHORITY FOR OFFSHORE INSIDER TRADING PROFITS.
Section 21C(c)(3) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-3(c)(3)) is amended--
(1) in subparagraph (A), by striking “(A) In general” and inserting “(A) Temporary freeze of extraordinary payments by an issuer”;
(2) by redesignating subparagraph (B) as subparagraph (C); and
(3) by inserting after subparagraph (A) the following:
“(B) Temporary freeze in insider trading investigations.--
“(i) Issuance of temporary order.--If the Commission finds that there is reason to believe that a violation described in section 21A has occurred, and that the person engaging in the purchase or sale constituting the potential violation is located outside of the United States, the Commission may impose a temporary order requiring any registered broker or dealer to freeze the brokerage accounts of such person at such broker or dealer for a period not to exceed 30 days after the date of entry of the order.
“(ii) Standard.--A temporary order may be entered under clause (i) without notice, unless the Commission determines that notice and hearing prior to entry of the order would be in the public interest.
“(iii) Effective period.--A temporary order issued under clause (i) shall--
“(I) become effective immediately;
“(II) be served upon each registered broker or dealer maintaining accounts subject to the order; and
“(III) unless set aside, limited, or suspended by the Commission or by a court of competent jurisdiction, remain effective and enforceable for the period specified in the order, but for not longer than 30 days after the date of entry of the order.
“(iv) Violation of temporary order.--A violation of a temporary order issued under clause (i) shall be deemed a violation of this title.”.
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Senate amendment submitted
February 1, 2012