Securities Enforcement Clarity Act of 2024

The Securities Act of 1933 is amended—

(1) in section 8A(g) (15 U.S.C. 77h–1(g)), by adding at the end the following:

For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—

(A) a common or a substantially overlapping originating cause;

(B) the same misstatement or omission; or

(C) a continuing failure to comply.

(1) ; and

(2) in section 20(d) (15 U.S.C. 77t(d)), by adding at the end the following:

For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—

(A) a common or a substantially overlapping originating cause;

(B) the same misstatement or omission; or

(C) a continuing failure to comply.

The Securities Exchange Act of 1934 is amended—

(1) in section 21(d)(3) (15 U.S.C. 78u(d)(3)), by adding at the end the following:

For purposes of determining the number of violations for which to impose penalties under subparagraph (A)(i), separate acts of noncompliance are a single violation when the acts are the result of—

(i) a common or a substantially overlapping originating cause;

(ii) the same misstatement or omission; or

(iii) a continuing failure to comply.

(2) in section 21B(a) (15 U.S.C. 78u–2(b)), by adding at the end the following:

For purposes of determining the number of violations, acts, or omissions for which to impose penalties under this subsection, separate acts of noncompliance are a single violation, act, or omission when the acts are the result of—

(A) a common or a substantially overlapping originating cause;

(B) the same misstatement or omission; or

(C) a continuing failure to comply.

(2) ; and

(3) in section 32 (15 U.S.C. 78ff), by adding at the end the following:

For purposes of determining the number of violations for which to impose penalties under subsection (c), separate acts of noncompliance are a single violation when the acts are the result of—

(1) a common or a substantially overlapping originating cause;

(2) the same misstatement or omission; or

(3) a continuing failure to comply.

The Investment Company Act of 1940 is amended—

(1) in section 9(d) (15 U.S.C. 80a–9(d)), by adding at the end the following:

For purposes of determining the number of violations, acts, or omissions for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation, act, or omission when the acts are the result of—

(A) a common or a substantially overlapping originating cause;

(B) the same misstatement or omission; or

(C) a continuing failure to comply.

(1) ; and

(2) in section 42(e) (15 U.S.C. 80a–41(e)), by adding at the end the following:

For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—

(A) a common or a substantially overlapping originating cause;

(B) the same misstatement or omission; or

(C) a continuing failure to comply.

The Investment Advisers Act of 1940 is amended—

(1) in section 203(i) (15 U.S.C. 80b–3(i)), by adding at the end the following:

For purposes of determining the number of violations, acts, or omissions for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation, act, or omission when the acts are the result of—

(A) a common or a substantially overlapping originating cause;

(B) the same misstatement or omission; or

(C) a continuing failure to comply.

(1) ; and

(2) in section 209(e) (15 U.S.C. 80b–9(e)), by adding at the end the following:

For purposes of determining the number of violations for which to impose penalties under paragraph (1), separate acts of noncompliance are a single violation when the acts are the result of—

(A) a common or a substantially overlapping originating cause;

(B) the same misstatement or omission; or

(C) a continuing failure to comply.