SEC Act of 2025
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This bill would require certain related securities law violations to be counted as a single violation when calculating financial penalties.
What it does
This bill would establish specific criteria for determining when multiple violations of securities laws should be treated as a single violation for the purpose of calculating financial penalties. Under the proposal, separate occurrences would be counted as one violation if they result from a common cause, the same misstatement or omission, or a continuing failure to comply with regulations. These standards would apply to various activities, including the registration and sale of securities as well as the professional conduct of investment advisers, brokers, and dealers.
Who is affected
This bill affects brokers, dealers, and investment advisers who are subject to federal securities law enforcement. It also impacts individuals and entities involved in the registration, offer, and sale of securities. These parties are affected by changes to how the government calculates penalties for separate occurrences of securities law violations.
Key provisions
- Consolidation of securities law violations for penalty calculations. The bill establishes specific criteria for when multiple occurrences of securities law violations must be treated as a single violation when determining financial penalties.
- Criteria for single violation classification. Separate acts are counted as one violation if they stem from a common or overlapping cause, involve the same misstatement or omission, or result from a continuing failure to comply with regulations.
- Broad application across securities activities. These standards apply to various legal infractions, including those related to the registration and sale of securities as well as the professional conduct of investment advisers, brokers, and dealers.
Fiscal impact
Not applicable: No CBO cost estimate available
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
This bill modifies the application of existing securities laws by establishing new criteria for how separate violations are aggregated when calculating penalties for brokers, dealers, investment advisers, and the sale of securities.
Stated purpose
The bill aims to establish specific criteria for determining when multiple instances of securities law violations should be treated as a single violation for the purpose of calculating financial penalties.