HR 757

112th CONGRESS
1st Session

H. R. 757

To amend the Securities Investor Protection Act of 1970 to confirm that a customer's net equity claim is based on the customer's last statement and that certain recoveries are prohibited, to change how trustees are appointed, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

February 17, 2011

Mr. GARRETT (for himself, Mr. KING of New York, and Ms. ROS-LEHTINEN) introduced the following bill; which was referred to the Committee on Financial Services


A BILL

To amend the Securities Investor Protection Act of 1970 to confirm that a customer's net equity claim is based on the customer's last statement and that certain recoveries are prohibited, to change how trustees are appointed, and for other purposes.

SECTION 1. SHORT TITLE.

SEC. 2. SECURITIES INVESTOR PROTECTION ACT OF 1970 AMENDMENTS.

`(aa) was, or was required to be, registered--

`(AA) as a broker or dealer under the Securities Exchange Act of 1934; or

`(BB) as an investment adviser under the Investment Advisers Act of 1940, or that would have been required to register as an investment adviser under the Investment Advisers Act of 1940 but for section 203(m) of such Act;

`(bb) knew, or, due to the activities of such person causing such person to be described under item (aa), should have known, that the debtor was involved in fraudulent activity with respect to any customer of the debtor; and

`(cc) did not notify SIPC, the Commission, or law enforcement personnel that the debtor was involved in such fraudulent activity.'.

SEC. 3. EFFECTIVE DATE.

END