Summary: H.R.559 — 98th Congress (1983-1984)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Passed Senate amended (06/29/1984)

(Measure passed Senate, amended, in lieu of S. 910)

Insider Trading Sanctions Act of 1984 - Amends the Securities Exchange Act of 1934 to permit the Securities and Exchange Commission, whenever it appears that any person has traded in securities while in possession of material nonpublic information, to seek an order in a district court action requiring the violator, or anyone who aided and abetted the violation, to pay a civil penalty of up to three times the profit gained or loss avoided as a result of the unlawful transaction.

Requires the Commission, if such person fails to pay such penalty, to refer the matter to the Attorney General, who shall recover such penalty by action in the appropriate U.S. district court.

States that no person shall be subject to such a sanction solely because that person aided and abetted in such a transaction in a manner other than by communicating material nonpublic information. Declares that no person shall be liable under such Act solely by reason of employing another person who is liable.

Prohibits any such action from being brought after five years after the date of the purchase or sale.

Increases from $10,000 to $100,000 the maximum criminal fine that may be imposed on persons, other than exchanges, who willfully violate the Securities Exchange Act of 1934.

Authorizes the Commission to begin administrative proceedings to effect compliance with requirements for the disclosure of information relating to a tender offer.

Provides that whenever communicating, or purchasing or selling a security while in possession of, material nonpublic information would violate or result in liability under such Act, such conduct in connection with a derivative security shall also violate and result in comparable liability.

Subjects persons who have engaged in certain misconduct under the commodities laws to statutory disqualification.

Permits an administrative proceeding against broker-dealers, or associated persons, based on misconduct in the commodities markets.