,,ii  #aafth ,,congress  #ast ,session  
,s4 #gii  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #ad1 #bjai   
,mr4 ,warner 7for himself and ,mr4      
,kennedy7 introduced the following bill2
 which was read twice and referred to   
the ,committee on ,banking1 ,housing1   
and ,urban ,affairs  ,a ,,bill  ,to     
amend the ,securities ,exchange ,act of 
#aicd to clarify that the ,securities   
and ,exchange ,commission may seek      
disgorgement and restitution as a result
 of a violation of the securities laws1 
to establish the statute of limitations 
for disgorgement and equitable actions  
brought by the ,commission1 and for     
other purposes4  #a4 ,short title  ,this
 ,act may be cited as the ,securities   
,fraud ,enforcement and ,investor       
,compensation ,act of #bjai4  #b4       
,investigations and prosecution of      
offenses for violations of the          
securities laws  7a7 ,in general        
,section #ba7;d7 of the ,securities     
,exchange ,act of #aicd 7#ae ,u4,s4,c4  

#ghu7d77 is amended-- 7#a7 in paragraph 
7#c7--  7,a7 in the paragraph heading-- 
7i7 by inserting ,civil before ,money   
penalties2 and  7ii7 by striking in     
civil actions and inserting and         
authority to seek disgorgement2  7,b7 in
 subparagraph 7,a71 by striking         
jurisdiction to impose and all that     
follows through the period at the end   
and inserting the following3            
8jurisdiction to--  7i7 impose1 upon a  
proper showing1 a civil penalty to be   
paid by the person who committed such   
violation2 and  7ii7 require            
disgorgement under paragraph 7#g7 by the
 person who received any unjust         
enrichment as a result of such          
violation4  2 and  7,c7 in subparagraph 
7,b7-- 7i7 in clause 7i71 in the first  
sentence1 by striking the penalty and   
inserting a civil penalty imposed under 
subparagraph 7,a77i72  7ii7 in clause   
7ii71 by striking amount of penalty and 
inserting amount of a civil penalty     
imposed under subparagraph 7,a77i72 and 

7iii7 in clause 7iii71 in the matter    
preceding item 7aa71 by striking amount 
of penalty for each such violation and  
inserting amount of a civil penalty     
imposed under subparagraph 7,a77i7 for  
each violation described in that        
subparagraph2  7#b7 in paragraph 7#d71  
by inserting under paragraph 7#g7 after 
funds disgorged2 and  7#c7 by adding at 
the end the following3  7#g7            
,disgorgement  7,a7 ,in general ,in any 
action or proceeding brought by the     
,commission under any provision of the  
securities laws1 the ,commission may    
seek1 and any ,federal court may order1 
disgorgement of any unjust enrichment   
that a person obtained as a result of a 
violation of that provision4  7,b7      
,calculation ,any disgorgement that is  
ordered with respect to a person under  
subparagraph 7,a7 shall be offset by any
 amount of restitution that the person  
is ordered to pay under paragraph 7#h74 
7#h7 ,restitution ,in any proceeding    
brought or instituted by the ,commission

 under any provision of the securities  
laws1 the ,commission may seek1 and any 
,federal court1 or1 with respect to a   
proceeding instituted by the            
,commission1 the ,commission1 may order 
restitution to an investor in the amount
 of the loss that the investor sustained
 as a result of a violation of that     
provision by a person that is--  7,a7   
registered as1 or required to be        
registered as1 a broker1 dealer1        
investment adviser1 municipal securities
 dealer1 municipal advisor1 or transfer 
agent2 or  7,b7 associated with or1 as  
of the date on which the violation      
occurs1 seeking to become associated    
with1 an entity described in            
subparagraph 7,a74  7#i7 ,limitations   
periods  7,a7 ,disgorgement ,the        
,commission may bring a claim for       
disgorgement under paragraph 7#g7 not   
later than #e years after the date on   
which the person against which the claim
 is brought receives any unjust         
enrichment as a result of the violation 

that gives rise to the action or        
proceeding in which the ,commission     
seeks the claim4  7,b7 ,equitable       
remedies ,the ,commission may seek a    
claim for any equitable remedy1         
including for restitution under         
paragraph 7#h71 an injunction1 or a bar1
 suspension1 or cease and desist order1 
not later than #aj years after the      
latest date on which a violation that   
gives rise to the claim occurs4  7,c7   
,calculation ,for the purposes of       
calculating any limitations period under
 this paragraph with respect to an      
action or claim1 any time in which the  
person against which the action or      
claim1 as applicable1 is brought is     
outside of the ,united ,states shall not
 count towards the accrual of that      
period4  7#aj7 ,rule of construction    
,nothing in paragraph 7#g7 or 7#h7 may  
be construed as altering any right that 
any private party may have to maintain a
 suit for a violation of this ,act4  4  
7b7 ,applicability ,the amendments made 

by subsection 7a7 shall apply with      
respect to any action or proceeding that
 is commenced on or after the date of   
enactment of this ,act4