Securities Enforcement and Penny Stock Reform Act of 1990

Summary

Securities Enforcement and Penny Stock Reform Act of 1990 - Title I: Amendments to the Securities Act of 1933 - Amends the Securities Act of 1933 to establish tiered civil money penalties for violations. Permits a court to prohibit violators from serving as officers and directors of securities-issuing entities. Authorizes the Securities and Exchange Commission (SEC) to issue: (1) cease and desist orders; (2) temporary restraining orders; and (3) orders for accounting and disgorgement. Title II: Amendments to the Securities Exchange Act of 1934 - Amends the Securities Exchange Act of 1934 to: (1) authorize a court to prohibit individuals from acting as officers or directors of securities-issuing entities if they have demonstrated a substantial unfitness to serve in that capacity; and (2) impose tiered civil money penalties for violations of such Act. Sets forth circumstances under which the SEC (or the appropriate regulatory agency) may: (1) impose civil penalties pursuant to administrative findings of violations of the Act; (2) enter an order requiring an accounting and disgorgement; (3) issue cease and desist orders; and (4) issue temporary restraining orders. Directs the SEC to promulgate procedural rules for cease and desist proceedings. Title III: Amendments to the Investment Company Act of 1940 - Amends the Investment Company Act of 1940 to authorize the SEC to impose civil remedies pursuant to civil and administrative proceedings, including: (1) tiered money penalties; (2) orders requiring an accounting and disgorgement; (3) cease and desist orders; and (4) temporary restraining orders. Title IV: Amendments to the Investment Advisers Act of 1940 - Amends the Investment Advisers Act of 1940 to authorize the SEC to impose civil remedies pursuant to administrative and civil proceedings, including: (1) tiered money penalties; (2) orders requiring an accounting and disgorgement; (3) cease and desist orders; and (4) temporary restraining orders. Title V: Penny Stock Reform - Penny Stock Reform Act of 1990 - Amends the Securities Exchange Act of 1934 to define "penny stock" securities and to extend regulatory authority over persons engaged in penny stock activities. Requires the Securities and Exchange Commission (SEC) to prescribe rules implementing such authority by a specified deadline. Empowers the Commission to exclude persons from participating in penny stock distributions if they have violated certain registration regulations. Prescribes requirements for brokers and dealers in penny stock transactions, including guidelines for mandatory risk disclosure statements. Requires the SEC to: (1) facilitate the establishment of automated penny stock quotation systems according to specified guidelines, submitting annual status reports to the Congress; and (2) report to the Congress the results of a review of penny stock self-regulatory mechanisms. Authorizes the Securities and Exchange Commission to designate rules whose violation shall not automatically render a contract void. Amends the Securities Act of 1933 to require the SEC to prescribe special rules for registration statements filed by any issuer that is a blank check company (one with no specific business plan or purpose, or whose intent is to merge with an unidentified company). Authorizes such rules to include the right of shareholder rescission. Amends the Securities Exchange Act of 1934 to require registered securities associations to establish a toll-free consumer hotline regarding broker-dealer disciplinary history.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 20 July 1990

   Introduced

   Referred to the House Committee on Energy and Commerce.

   Source: IntroReferral

2. 20 July 1990

   Introduced

   Introduced in House

   Source: IntroReferral

3. 20 July 1990

   Introduced

   Introduced in House

   Source: IntroReferral

4. 23 July 1990

   Floor

   The House took from the Speaker's table and moved to the consideration of S. 647, a similar measure to H.R. 5325.

   Source: Floor

5. 23 July 1990

   Floor

   Laid on the table. See S. 647 for further action.

   Source: Floor

6. 23 July 1990

   Passed

   Motion to reconsider laid on the table Agreed to without objection.

   Source: Floor

7. 23 July 1990

   Passed

   On motion to suspend the rules and pass the bill Agreed to by voice vote.

   Source: Floor

8. 23 July 1990

   Passed

   Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote.

   Source: Floor

9. 23 July 1990

   Floor

   DEBATE - The House proceeded with forty minutes of debate.

   Source: Floor

10. 23 July 1990

    Passed

    On ordering a second Agreed to without objection.

    Source: Floor

11. 23 July 1990

    Floor

    Considered under suspension of the rules.

    Source: Floor

12. 23 July 1990

    Floor

    Mr. Rinaldo demanded a second on the motion to suspend the rules.

    Source: Floor

13. 23 July 1990

    Floor

    Mr. Markey moved to suspend the rules and pass the bill.

    Source: Floor

Votes

No vote records are attached yet.

Versions

• Introduced in House · — · Download file

Documents

2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 20 July 1990

  Open at official source

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Sponsors

• Sen. Markey, Edward J. [D-MA] · D · Sponsor
• Rep. Dingell, John D. [D-MI-12] · D · Sponsor
• Rep. Rinaldo, Matthew J. [R-NJ-7] · R · Sponsor
• Sen. Wyden, Ron [D-OR] · D · Sponsor
• Rep. Richardson, Bill [D-NM-3] · D · Sponsor
• Rep. Moorhead, Carlos J. [R-CA-22] · R · Sponsor
• Rep. Slattery, Jim [D-KS-2] · D · Sponsor
• Rep. McMillen, Thomas [D-MD-4] · D · Sponsor
• Rep. Bates, Jim [D-CA-44] · D · Sponsor
• · hsif00 · Standing

Related records

• related to → Securities Law Enforcement Remedies Act of 1990
• related to → Penny Stock Reform Act of 1990
• related to ← Securities Enforcement Remedies and Penny Stock Reform Act of 1990