,i #aaf? ,,congress #b;d ,session ,h4 ,r4 #hihc ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #af1 #bjbj,mr4 ,hill ( ,arkansas introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d ! ,s>banes-,oxley ,act ( #bjjb to exclude ! audits ( privately held1 non-cu/ody brok]s & deal]s t are 9 good /&+ f c]ta9 requirem5ts "u title ,i ( t ,act1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,small ,bus9ess ,audit ,correction ,act ( #bjbj4 #b4 ,exemption 7a7 ,am5dm5ts to ! ,s>banes-,oxley ,act ( #bjjb ,section #aaj ( ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbbj7 is am5d$-- 7#a7 9 p>agraph 7#c71 by ins]t+ 1 except t ! t]m does n include a non-cu/ody brok] or deal] t is privately held & 9 good /&+ aft] regi/]$ public acc\nt+ firm2 7#b7 9 p>agraph 7#d71 by ins]t+ 1 except t ! t]m does n include a non-cu/ody brok] or deal] t is privately held & 9 good /&+ aft] regi/]$ public acc\nt+ firm2 7#c7 by r$esignat+ p>agraphs 7#e7 & 7#f7 z p>agraphs 7#h7 & 7#i71 respectively2 & 7#d7 by ins]t+ aft] p>agraph 7#d7 ! foll[+3 7#e7 ,9 good /&+ ,! t]m 9 good /&+ means1 ) respect to a brok] or deal] 7z ^? t]ms are def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 t1 z ( ! la/ day ( ! mo/ rec5tly complet$ fiscal ye> ( ! brok] or deal]1 z applicable1 ! brok] or deal]-- 7,a7 is regi/]$ ) ! ,commission2 7,b7 is a memb] ( an association t is regi/]$ z a national securities association "u section #ae;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#c72 7,c7 is compliant ) ! m9imum doll> net capital requirem5ts "u section #bdj4ae;c#c-a ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation2 7,d7 has n1 dur+ ! #aj-ye> p]iod prec$+ t date1 be5 convict$ ( a felony "u ,f$]al or ,/ate law2 7,e7 does n h a p]son associat$ ) ! brok] or deal]1 z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a771 t1 dur+ ! #aj-ye> p]iod prec$+ t date1 has be5 convict$ ( a felony = fraudul5t conduct "u ,f$]al or ,/ate law2 & 7,f7 is n subject to /atutory disqualification by reason ( be+-- 7i7 expell$ or susp5d$ f-- 7,i7 an association t is regi/]$ z describ$ 9 subp>agraph 7,b72 or 7,,ii7 an association t is regi/]$ z a regi/]$ futures association "u section #ag ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #ba72 7ii7 subject to an ord] ( ! ,commission1 o!r appropriate regulatory ag5cy1 or =eign f9ancial regulatory au?ority d5y+1 susp5d+1 or revok+ ! regi/ration ( ! brok] or deal] z a regulat$ entity2 7iii7 subject to an ord] ( ! ,commodity ,futures ,trad+ ,commission1 or o!r appropriate regulatory entity1 d5y+1 susp5d+1 or revok+ ! regi/ration ( ! brok] or deal] "u ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 or ! au?ority ( ! brok] or deal] to engage 9 any transaction2 or 7iv7 subject to a re/ra9+ ord] ent]$ by a c\rt4 7#f7 ,non-cu/ody brok] or deal] ,! t]m non-cu/ody brok] or deal] means a brok] or deal] 7z ^? t]ms are def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 z applicable1 t-- 7,a7 z ( ! la/ day ( ! mo/ rec5tly complet$ fiscal ye> ( ! brok] or deal]-- 7i7 has n less ?an "o & n m ?an #aej p]sons regi/]$ ) an association t is regi/]$ z a national securities association "u section #ae;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#c72 7ii7 is n a high frequ5cy trad+ brok] or deal]1 z t t]m is def9$ by ! ,commission ) respect to a p>ticul> regi/]$ firm type2 & 7iii7 is n affiliat$ ) an inve/m5t advisor t-- 7,i7 is regi/]$ ) ! ,commission or a ,/ate entity2 & 7,,ii7 acts z ! cu/odian = cu/om] assets2 7,b7 ) respect to ! av]age ( ! ?ree mo/ rec5tly complet$ fiscal ye>s ( ! brok] or deal]1 has gross rev5ue t enables ! brok] or deal] to qualify z a small bus9ess conc]n = ! purposes ( a program adm9i/]$ by ! ,small ,bus9ess ,adm9i/ration2 & 7,c7 ?r\gh\t ! mo/ rec5tly complet$ fiscal ye> ( ! brok] or deal]-- 7i7 does n1 z a matt] ( ord9>y bus9ess practice 9 connection ) ! activities ( ! brok] or deal]1 receive cu/om] *ecks1 drafts1 or o!r evid5ce ( indebt$ness made payable to ! brok] or deal]2 7ii7 if requir$ "u section #c7;a77#b7 ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;ccc7a77#b771 is a memb] ( ! ,securities ,inve/or ,protection ,corporation2 & 7iii7 ei!r-- 7,i7 if ! brok] or deal] is subject to section #bdj4ae;c#c-c ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation1 is 9 compliance ) t section2 or 7,,ii7 is n subject to su* section #bdj4ae;c#c-c1 or any successor regulation1 because ! brok] or deal] does n ma9ta9 cu/ody ov] any cu/om] securities or ca%4 7#g7 ,privately held ,! t]m privately held means1 ) respect to a brok] or deal] 7z ^? t]ms are def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 t ! brok] or deal]1 z applicable1 is n an issu]4 4 7b7 ,am5dm5ts to regulations 7#a7 ,def9itions ,9 ?is subsection1 ! t]ms 9 good /&+1 non-cu/ody brok] or deal]1 & privately held h ! mean+s giv5 ! t]ms 9 section #aaj ( ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbbj71 z am5d$ by subsection 7a74 7#b7 ,am5dm5ts ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission %all make any necess>y am5dm5ts to regulations ( ! ,commission t are 9 effect z ( ! date ( enactm5t ( ?is ,act 9 ord] to-- 7,a7 c>ry out ?is ,act & ! am5dm5ts made by ?is ,act2 & 7,b7 exclude ! auditors ( non-cu/ody brok]s or deal]s t are privately held & 9 good /&+ f ! audit requirem5ts ( ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d4 7c7 ,effective date ,?is ,act1 & ! am5dm5ts made by ?is ,act1 %all take effect on ! date t is #ahj days aft] ! date ( enactm5t ( ?is ,act4