,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #baf  ,,in ,,the ,,house ,,of   
,,representatives  ,january #g1         
#bjbe,mr4 ,sessions introduced the      
following bill2 which was referred to   
the ,committee on ,financial ,services  
,a ,,bill  ,to amend the ,securities    
,act of #aicc1 the ,securities ,exchange
 ,act of #aicd1 the ,investment ,company
 ,act of #aidj1 and the ,investment     
,advisors ,act of #aidj with respect to 
the determination of violations4  #a4   
,short title ,this ,act may be cited as 
the ,securities ,enforcement ,clarity   
,act of #bjbe or the ,,sec ,act of      
#bjbe4  #b4 ,determination of the number
 of violations  7a7 ,securities ,act of 
#aicc ,the ,securities ,act of #aicc is 
amended-- 7#a7 in section #h;,a7g7 7#ae 
,u4,s4,c4 #gg;h-#a7;g771 by adding at   
the end the following3  7#d7            
,determination of number of violations  
,for purposes of determining the number 
of violations for which to impose       
penalties under paragraph 7#a71 separate

 acts of noncompliance are a single     
violation when the acts are the result  
of-- 7,a7 a common or a substantially   
overlapping originating cause2  7,b7 the
 same misstatement or omission2 or  7,c7
 a continuing failure to comply4  2 and 
7#b7 in section #bj7;d7 7#ae ,u4,s4,c4  
#ggt7d771 by adding at the end the      
following3  7#e7 ,determination of      
number of violations ,for purposes of   
determining the number of violations for
 which to impose penalties under        
paragraph 7#a71 separate acts of        
noncompliance are a single violation    
when the acts are the result of-- 7,a7 a
 common or a substantially overlapping  
originating cause2  7,b7 the same       
misstatement or omission2 or  7,c7 a    
continuing failure to comply4  4  7b7   
,securities ,exchange ,act of #aicd ,the
 ,securities ,exchange ,act of #aicd is 
amended-- 7#a7 in section #ba7;d77#c7   
7#ae ,u4,s4,c4 #ghu7d77#c771 by adding  
at the end the following3  7,e7         
,determination of number of violations  

,for purposes of determining the number 
of violations for which to impose       
penalties under subparagraph 7,a77i71   
separate acts of noncompliance are a    
single violation when the acts are the  
result of-- 7i7 a common or a           
substantially overlapping originating   
cause2  7ii7 the same misstatement or   
omission2 or  7iii7 a continuing failure
 to comply4  2  7#b7 in section         
#ba;,b7a7 7#ae ,u4,s4,c4 #ghu-#b7;b771  
by adding at the end the following3     
7#c7 ,determination of number of        
violations1 acts1 or omissions ,for     
purposes of determining the number of   
violations1 acts1 or omissions for which
 to impose penalties under this         
subsection1 separate acts of            
noncompliance are a single violation1   
act1 or omission when the acts are the  
result of-- 7,a7 a common or a          
substantially overlapping originating   
cause2  7,b7 the same misstatement or   
omission2 or  7,c7 a continuing failure 
to comply4  2 and  7#c7 in section #cb  

7#ae ,u4,s4,c4 #gh;ff71 by adding at the
 end the following3  7d7 ,determination 
of number of violations ,for purposes of
 determining the number of violations   
for which to impose penalties under     
subsection 7c71 separate acts of        
noncompliance are a single violation    
when the acts are the result of-- 7#a7 a
 common or a substantially overlapping  
originating cause2  7#b7 the same       
misstatement or omission2 or  7#c7 a    
continuing failure to comply4  4  7c7   
,investment ,company ,act of #aidj ,the 
,investment ,company ,act of #aidj is   
amended-- 7#a7 in section #i7;d7 7#ae   
,u4,s4,c4 #hj;a-#i7;d771 by adding at   
the end the following3  7#e7            
,determination of number of violations1 
acts1 or omissions ,for purposes of     
determining the number of violations1   
acts1 or omissions for which to impose  
penalties under paragraph 7#a71 separate
 acts of noncompliance are a single     
violation1 act1 or omission when the    
acts are the result of-- 7,a7 a common  

or a substantially overlapping          
originating cause2  7,b7 the same       
misstatement or omission2 or  7,c7 a    
continuing failure to comply4  2 and    
7#b7 in section #db7;e7 7#ae ,u4,s4,c4  
#hj;a-#da7;e771 by adding at the end the
 following3  7#e7 ,determination of     
number of violations ,for purposes of   
determining the number of violations for
 which to impose penalties under        
paragraph 7#a71 separate acts of        
noncompliance are a single violation    
when the acts are the result of-- 7,a7 a
 common or a substantially overlapping  
originating cause2  7,b7 the same       
misstatement or omission2 or  7,c7 a    
continuing failure to comply4  4  7d7   
,investment ,advisors ,act of #aidj ,the
 ,investment ,advisers ,act of #aidj is 
amended-- 7#a7 in section #bjc7;i7 7#ae 
,u4,s4,c4 #hj;b-#c7;i771 by adding at   
the end the following3  7#e7            
,determination of number of violations1 
acts1 or omissions ,for purposes of     
determining the number of violations1   

acts1 or omissions for which to impose  
penalties under paragraph 7#a71 separate
 acts of noncompliance are a single     
violation1 act1 or omission when the    
acts are the result of-- 7,a7 a common  
or a substantially overlapping          
originating cause2  7,b7 the same       
misstatement or omission2 or  7,c7 a    
continuing failure to comply4  2 and    
7#b7 in section #bji7;e7 7#ae ,u4,s4,c4 
#hj;b-#i7;e771 by adding at the end the 
following3  7#e7 ,determination of      
number of violations ,for purposes of   
determining the number of violations for
 which to impose penalties under        
paragraph 7#a71 separate acts of        
noncompliance are a single violation    
when the acts are the result of-- 7,a7 a
 common or a substantially overlapping  
originating cause2  7,b7 the same       
misstatement or omission2 or  7,c7 a    
continuing failure to comply4  4