H.R.5726 - Securities Investor Protection Amendments of 1992102nd Congress (1991-1992)
|Sponsor:||Rep. Boucher, Rick [D-VA-9] (Introduced 07/30/1992)|
|Committees:||House - Energy and Commerce|
|Committee Reports:||H.Rept 102-883 Part 1|
|Latest Action:||09/23/1992 Laid on the table. See S. 2266 for further action.|
This bill has the status Passed House
Here are the steps for Status of Legislation:
- Passed House
Summary: H.R.5726 — 102nd Congress (1991-1992)All Bill Information (Except Text)
Passed House amended (09/22/1992)
Securities Investor Protection Amendments of 1992 - Title I: Investment Adviser Regulatory Enhancement and Disclosure Act of 1992 - Investment Adviser Regulatory Enhancement and Disclosure Act of 1992 - Amends the Investment Advisers Act of 1940 to authorize the Securities and Exchange Commission (SEC) to collect fees to cover specified costs of regulating investment advisers and their activities. Sets forth a sliding scale fee schedule based upon assets under adviser management (adjustable annually according to specified indexes). Authorizes the SEC to suspend the registration of any investment adviser for failure to pay the requisite fees.
Directs the SEC to: (1) establish and periodically revise a schedule for the regular inspection of investment advisers (plus a more frequent schedule for certain advisers based upon enumerated risk factors); and (2) conduct and report to the Congress on surveys to determine the extent of and reasons for the failure of persons to register as mandated.
Authorizes the SEC to designate registered self-regulatory organizations to: (1) conduct periodic examinations of members and their affiliates to determine compliance with this Act; (2) discipline them for non-compliance; and (3) collect examination fees according to prescribed guidelines.
Lists prohibited transactions by registered investment advisers with respect to fraudulent, deceptive, or manipulative practices, including the rendering of investment advice that is unsuitable to the client's financial situation and experience. Directs the SEC to promulgate rules with respect to such proscriptions.
Requires registered investment advisers to disseminate to current and prospective clients brochures disclosing specified investor protection information, including: (1) conflicts of interest; (2) compensation arrangements; (3) any disiplinary history; and (4) available remedies for disputes arising out of the investment adviser-client relationships. Requires registered investment advisers to provide each client periodically with a written statement of sales commissions and other client-paid fees, and compensation arrangements with a third party regarding recommended transactions.
Directs the SEC to promulgate investor protection rules setting bond requirements against larceny and embezzlement for investment advisers who: (1) are authorized to exercise investment discretion; and (2) have access to their clients' assets.
Prohibits: (1) a person convicted of a felony within the last ten years from registering as an investment adviser; and (2) an investment adviser from disclosing confidential client information.
Authorizes the SEC to cooperate with State securities regulatory agencies.
Title II: Financial Fraud Detection and Disclosure - Financial Fraud Detection and Disclosure Act - Amends the Securities Exchange Act of 1934 to include within statutorily mandated audit requirements specified fraud detection and disclosure procedures to be followed by an independent public accountant. Precludes auditor liability in a private action. States that no action brought by a conservator or receiver appointed for a bank or savings association whose deposits are insured under the Federal Deposit Insurance Act shall be considered a private action with respect to auditor liability.
Authorizes the Securities and Exchange Commission to impose civil penalties for willful violations of this Act by an independent public accountant.
Title III: Transactions for Managed Accounts - Amends the Securities Exchange Act of 1934 to authorize members of national securities exchanges to effect certain transactions with respect to accounts for which they exercise investment discretion (managed accounts) if they: (1) have obtained, from the persons authorized to transact business for the account, express authorization to effect the transaction prior to engaging in it: (2) furnish the person authorized to transact business for the account with an annual statement disclosing the aggregate compensation received for effecting such transactions; and (3) comply with the pertinent rules of the Securities and Exchange Commission. Repeals existing managed account provisions.