,,ib ,union ,cal5d> ,no4 #fid #aai?     
,,congress  #b;d ,session  ,h4 ,r4 #icbi
 ,report ,no4 #aai-gid ,,9 ,,! ,,h\se   
,,( ,,repres5tatives  ,june #ah1        
#bjbf,mrs4 ,wagn] 7= h]self1 ,mr4 ,d[n+1
 ,mr4 ,sessions1 & ,mr4 ,huiz5ga7       
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices     
,septemb] #c1 #bjbf;,additional sponsor3
 ,mrs4 ,kim  ,septemb] #c1 #bjbf,report$
 ) an am5dm5t1 committ$ to ! ,committee 
( ! ,:ole ,h\se on ! ,/ate ( ! ,union1 &
 ord]$ to be printed,strike out all aft]
 ! enact+ clause & ins]t ! "p pr9t$ 9   
italic,for text ( introduc$ bill1 see   
copy ( bill z introduc$ on ,june #ah1   
#bjbf  ,a ,,bill  ,to make improvem5ts  
to ! securities laws1 & = o!r purposes4 
#a4 ,%ort title2 table ( cont5ts  7a7   
,%ort title ,?is ,act may be cit$ z !   
,,sec ,re=m & ,re/ructur+ ,act4  7b7    
,table ( cont5ts ,! table ( cont5ts =   
?is ,act is z foll[s3 ,sec4 #a4 ,%ort   
title2 table ( cont5ts4,title ,i--,,sec 
,regulatory ,accountability,sec4 #aja4  

,consid]ation by ! ,securities &        
,ex*ange ,commission ( ! co/s & b5efits 
( regulations & c]ta9 o!r ag5cy actions 
( ! ,commission4,title ,,ii--,,sec      
,transparency,sec4 #bja4 ,semiannual    
te/imony to ,congress reg>d+ activities 
( ! ,securities & ,ex*ange              
,commission4,title ,,iii--,,sec         
,cybersecurity,sec4 #cja4 ,,gao audit ( 
in=mation te*nology infra/ructure & h&l+
 ( data4,title ,,iv--,review !          
,expansion ( ,government,sec4 #dja4     
,consid]ation ( cumulative effect (     
regulations requir$4,title ,v--,/reaml9+
 ,public ,company ,acc\nt+              
,oversight,sec4 #eja4 ,transf] ( ,public
 ,company ,acc\nt+ ,ov]sight ,bo>d to   
,securities & ,ex*ange ,commission4,sec4
 #ejb4 ,e/abli%m5t2 adm9i/rative        
provisions4,sec4 #ejc4 ,regi/ration ) ! 
,(fice4,sec4 #ejd4 ,audit+1 quality     
control1 /&>ds1 & rules4,sec4 #eje4     
,=eign public acc\nt+ firms4,sec4 #ejf4 
,fund+4,sec4 #ejg4 ,def9itions4,sec4    
#ejh4 ,te*nical & con=m+ am5dm5ts4,sec4 

#eji4 ,rule ( con/ruction ) respect to  
coop]ative arrangem5ts4,sec4 #eaj4      
,regulations4,sec4 #eaa4 ,effective     
date4,title ,,vi--,/udy ,reg>d+ ,major  
,rules ,issu$ by ! ,securities &        
,ex*ange ,commission,sec4 #fja4 ,,gao   
/udy reg>d+ major rules4,title          
,,vii--,m9imum public comm5t period,sec4
 #gja4 ,m9imum public comm5t            
p]iod4,title ,,viii--,securities        
,en=cem5t ,clarity,sec4 #hja4           
,det]m9ation ( ! numb] (                
violations4,title ,,ix--,,sec           
,modernization,sec4 #ija4 ,commission   
organization4  ,i ,,sec ,regulatory     
,acc\ntability  #aja4 ,consid]ation by !
 ,securities & ,ex*ange ,commission ( ! 
co/s & b5efits ( regulations & c]ta9 o!r
 ag5cy actions ( ! ,commission ,section 
#bc ( ! ,securities ,ex*ange ,act (     
#aicd 7#ae ,u4,s4,c4 #ghw7 is am5d$ by  
add+ at ! end ! foll[+3  7e7            
,consid]ation ( co/s & b5efits  7#a7    
,consid]ations be=e propos+ a regulation
 ,be=e propos+ a regulation1 !          

,commission %all-- 7,a7 cle>ly id5tify !
 nature & s\rce ( ! problem t !         
regulation is design$ to address1 z well
 z assess ! significance ( t problem1 to
 enable assessm5t ( :e!r any new        
regulation is w>rant$2 &  7,b7 ensure t 
! regulation w\ld be )9 ! ,commission's 
jurisdiction & t ! ,commission has      
suffici5t exp]i5ce & exp]tise to        
regulate ! subject matt] cov]$ by !     
regulation4  7#b7 ,requirem5ts = issu+ a
 propos$ or f9al regulation  7,a7 ,9    
g5]al ,9 issu+ a propos$ or f9al        
regulation1 ! ,commission %all-- 7i7    
cle>ly id5tify ! m>ket p>ticipants :o w 
be impact$ by ! regulation2  7ii7       
utilize ! ,*ief ,economi/ ( !           
,commission to assess ! co/s & b5efits1 
bo? qualitative & quantitative1 ( !     
regulation1 bo? on ! regulation's own & 
cumulatively ) o!r exi/+ & relat$       
propos$ regulations2  7iii7 only issue !
 regulation if ! ,commission makes a    
reason$ det]m9ation t ! b5efits ( !     
regulation ju/ify ! co/s ( ! regulation2

  7iv7 ensure t ! regulation is         
accessible1 consi/5t1 writt5 9 pla9     
language1 & easy to und]/&2 &  7v7      
ensure t ! l5g? ( ! public comm5t p]iod 
is comm5surate ) ! complexity ( !       
regulation & ! expect$ public int]e/ 9 !
 rulemak+4  7,b7 ,inclusion ( in=mation 
9 a propos$ or f9al regulation ,9 issu+ 
a propos$ or f9al regulation1 !         
,commission %all include 9 !            
regulation-- 7i7 ! results ( !          
id5tifications & assessm5ts requir$ "u  
clauses 7i7 & 7ii7 ( subp>agraph 7,a7 ) 
respect to ! regulation2  7ii7 an       
explanation ( :y ! regulation meets !   
regulatory objectives ( ! ,commission m 
effectively ?an o!r available           
alt]natives2  7iii7 a description ( h[ !
 ,commission int5ds ! regulation to     
int]act ) exi/+ regulations & propos$   
regulations2 &  7iv7 a ju/ification ( ! 
l5g? ( ! public comm5t p]iod = !        
regulation4  7#c7 ,consid]ations &      
actions  7,a7 ,requir$ actions ,9 decid+
 :e!r & h[ to regulate1 ! ,commission   

%all assess ! co/s & b5efits ( available
 regulatory alt]natives1 includ+ !      
alt]native ( n regulat+1 & *oose !      
approa* t maximizes b5efits net ( co/s1 
to ! ext5t practicable4 ,specifically1 !
 ,commission %all-- 7i7 consi/5t ) !    
requirem5ts ( section #c7;f7 7#ae       
,u4,s4,c4 #gh;c7f771 section #b7;b7 ( ! 
,securities ,act ( #aicc 7#ae ,u4,s4,c4 
#gg;b7b771 section #bjb7;c7 ( !         
,inve/m5t ,advis]s ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;b-#b7;c771 & section      
#b7;c7 ( ! ,inve/m5t ,company ,act (    
#aidj 7#ae ,u4,s4,c4 #hj;a-#b7;c771     
consid] :e!r a rulemak+ 7bo? on !       
regulation's own & cumulatively ) o!r   
relat$ & propos$ regulations71 9        
addition to be+ 9 ! int]e/ ( protect+   
inve/ors1 w promote effici5cy1          
competition1 & capital =mation2 &  7ii7 
evaluate :e!r a regulation is           
inconsi/5t1 incompatible1 or duplicative
 ( o!r ,f$]al regulations4  7,b7        
,additional consid]ations ,9 addition1 9
 mak+ a reason$ det]m9ation "u p>agraph 

7#b77;,a77iii7 ( ! co/s & b5efits ( a   
regulation1 ! ,commission %all1 to !    
ext5t t ea* is relevant to ! p>ticul>   
regulation1 take into consid]ation !    
impact ( ! regulation on-- 7i7 inve/or  
*oice2  7ii7 m>ket liquidity 9 !        
securities m>kets2  7iii7 small         
bus9esses2  7iv7 competition 9 !        
m>ketplace2 &  7v7 inve/or access4  7#d7
 ,po/-adoption impact assessm5t  7,a7 ,9
 g5]al ,:5ev] ! ,commission issues a    
f9al regulation t is a major rule 7z    
def9$ "u section #hjd ( title #e1 ,unit$
 ,/ates ,code71 x %all /ate1 9 !        
regulation1 ! foll[+3 7i7 ,! purposes & 
int5d$ consequ5ces ( ! regulation4  7ii7
 ,appropriate po/-implem5tation         
quantitative & qualitative metrics to   
measure ! economic impact ( ! regulation
 & to measure ! ext5t practicable to :i*
 ! regulation has accompli%$ ! /at$     
purposes4  7iii7 ,! assessm5t plan t w  
be us$1 consi/5t ) ! requirem5ts (      
subp>agraph 7,b74  7iv7 ,any un9t5d$ or 
negative consequ5ces t ! ,commission    

=esees may result f ! regulation4  7,b7 
,requirem5ts ( assessm5t plan & report  
7i7 ,requirem5ts ( plan ,= ea*          
regulation describ$ "u subp>agraph 7,a71
 ! ,commission1 9 consultation ) ! ,*ief
 ,economi/1 %all e/abli% an assessm5t   
plan1 :i* %all-- 7,i7 id5tify ! co/s1   
b5efits1 & int5d$ & un9t5d$ consequ5ces 
z id5tifi$ 9 ! rulemak+ release ( !     
regulation2 &  7,,ii7 specify ! data to 
be collect$1 ! me?ods = collection &    
analysis ( ! data1 & a date = completion
 ( ! assessm5t4  7ii7 ,tim+ ( assessm5t 
plan report ,a report on ea* complet$   
assessm5t plan describ$ "u clause 7i7   
%all be submitt$ by ! ,*ief ,economi/ to
 ! ,commission n lat] ?an ! end ( !     
#d-ye> p]iod beg9n+ on ! date !         
applicable regulation is issu$1 unless !
 ,commission1 at ! reque/ ( ! ,*ief     
,economi/1 publi%es at lea/ #ij days    
be=e ! end ( su* p]iod a notice 9 !     
,f$]al ,regi/] ext5d+ ! date & provid+  
specific reasons :y an ext5sion is      
necess>y4  7iii7 ,public comm5t ,n lat] 

?an #cj days aft] ! ,commission receives
 an assessm5t plan report "u clause     
7ii71 ! ,commission %all publi% ! report
 9 ! ,f$]al ,regi/] = public comm5t4    
7#e7 ,regulation def9$ ,9 ?is           
subsection1 ! t]m regulation-- 7,a7     
means an ag5cy /atem5t ( g5]al          
applicability & future effect t is      
design$ to implem5t1 int]pret1 or       
prescribe law or policy or to describe !
 proc$ure or practice requirem5ts ( an  
ag5cy1 includ+ rules1 ord]s ( g5]al     
applicability1 int]pretive releases1 &  
o!r /atem5ts ( g5]al applicability t !  
ag5cy int5ds to h ! =ce & effect ( law2 
&  7,b7 does n include-- 7i7 a          
regulation issu$ 9 accordance ) ! =mal  
rulemak+ provisions ( section #eef or   
#eeg ( title #e1 ,unit$ ,/ates ,code2   
7ii7 a regulation t is limit$ to ag5cy  
organization1 managem5t1 or p]sonnel    
matt]s2  7iii7 a regulation promulgat$  
pursuant to /atutory au?ority t         
expressly prohibits compliance ) ?is    
provision2 &  7iv7 a regulation t is    

c]tifi$ by ! ag5cy to be an em]g5cy     
action1 if su* c]tification is publi%$ 9
 ! ,f$]al ,regi/]4  4  ,,ii ,,sec       
,transp>5cy  #bja4 ,semiannual te/imony 
to ,congress reg>d+ activities ( !      
,securities & ,ex*ange ,commission      
,section #d ( ! ,securities ,ex*ange    
,act ( #aicd 7#ae ,u4,s4,c4 #gh;d7 is   
am5d$ by add+ at ! end ! foll[+3  7k7   
,semiannual te/imony to ,congress ,!    
,*airman ( ! ,commission %all1 n less   
?an once e #f mon?s aft] ! date ( !     
enactm5t ( ?is subsection1 te/ify be=e !
 ,committee on ,f9ancial ,s]vices ( !   
,h\se ( ,repres5tatives & ! ,committee  
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate on ! activities ( ! ,commission4 
,at lea/ once annually1 ! ,commission]s 
%all jo9 ! ,*airman ) respect to te/ify+
 pursuant to ! prec$+ s5t5ce4  4  ,,iii 
,,sec ,cyb]security  #cja4 ,,gao audit (
 in=mation te*nology infra/ructure &    
h&l+ ( data ,! ,comptroll] ,g5]al ( !   
,unit$ ,/ates %all1 n lat] ?an #a ye>   
aft] ! date ( ! enactm5t ( ?is ,act--   

7#a7 p]=m an indep5d5t audit ( !        
in=mation te*nology 7,,x7 infra/ructure 
( ! ,securities & ,ex*ange ,commission &
 ! ,commission's h&l+ ( data1 includ+-- 
7,a7 a comp>ison ( ! ,commission's ,,x  
sp5d+ to o!r ,f$]al f9ancial regulators1
 includ+-- 7i7 ! total am\nt sp5t on ,,x
 equipm5t & s]vices2 &  7ii7 ! am\nt (  
,,x sp5d+ 9 proportion to ea*           
regulator's total sp5d+2  7,b7 exam9+ ! 
quality & effectiv5ess ( ! ,commission's
 ,,x contract+2  7,c7 det]m9+ if !      
,commission's data & cyb]security sy/ems
 & proc$ures are suffici5t2 &  7,d7     
exam9+ any rec5t ,commission ,,x or data
 ev5ts1 su* z brea*es or hacks1 t may h 
compromis$ ! ,commission's ,,x          
infra/ructure or expos$ a vuln]ability2 
&  7#b7 provide to ! ,commission1 !     
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives1 & ! ,committee 
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate a report conta9+-- 7,a7 all f9d+s
 & det]m9ations made 9 conduct+ ! audit2
 &  7,b7 recomm5dations = /eps t c be   

tak5 to improve ! ,commission's ,,x     
infra/ructure4  ,,iv ,review !          
,expansion ( ,gov]nm5t  #dja4           
,consid]ation ( cumulative effect (     
regulations requir$  7a7 ,rules "u !    
,securities ,act ( #aicc ,section #b7;b7
 ( ! ,securities ,act ( #aicc 7#ae      
,u4,s4,c4 #gg;b7b77 is am5d$ by ins]t+ 1
 :5 consid]$ individually or            
cumulatively ) o!r relat$ rules or      
regulations or o!r relat$ & rec5t       
propos$ rules or regulations1 be=e w    
promote4  7b7 ,rules "u ! ,securities   
,ex*ange ,act ( #aicd ,section          
#bc7;a77#b7 ( ! ,securities ,ex*ange    
,act ( #aicd 7#ae ,u4,s4,c4 #ghw7a77#b77
 is am5d$ by ins]t+ 1 :5 consid]$       
individually or cumulatively ) o!r      
relat$ rules or regulations or o!r      
relat$ & rec5t propos$ rules or         
regulations1 aft] :i* w\ld4  7c7 ,rules 
"u ! ,inve/m5t ,company ,act ( #aidj    
,section #b7;c7 ( ! ,inve/m5t ,company  
,act ( #aidj 7#ae ,u4,s4,c4             
#hj;a-#b7;c77 is am5d$ by ins]t+ 1 :5   

consid]$ individually or cumulatively ) 
o!r relat$ rules or regulations or o!r  
relat$ & rec5t propos$ rules or         
regulations1 be=e w promote4  7d7 ,rules
 "u ! ,inve/m5t ,advis]s ,act ( #aidj   
,section #bjb7;c7 ( ! ,inve/m5t ,advis]s
 ,act ( #aidj 7#ae ,u4,s4,c4            
#hj;b-#b7;c77 is am5d$ by ins]t+ 1 :5   
consid]$ individually or cumulatively ) 
o!r relat$ rules or regulations or o!r  
relat$ & rec5t propos$ rules or         
regulations1 be=e w promote4  ,v        
,/reaml9+ ,public ,company ,acc\nt+     
,ov]sight  #eja4 ,transf] ( ,public     
,company ,acc\nt+ ,ov]sight ,bo>d to    
,securities & ,ex*ange ,commission  7a7 
,global am5dm5ts ,except z o!rwise      
provid$ "u ?is title1 title ,i ( !      
,s>banes-,oxley ,act ( #bjjb 7#ae       
,u4,s4,c4 #gbaa et seq47 is am5d$-- 7#a7
 9 ! title head+1 by /rik+ ,public      
,company ,acc\nt+ ,ov]sight ,bo>d &     
ins]t+ ,(fice ( ,public ,acc\nt+        
,ov]sight2  7#b7 by /rik+ ! ,bo>d ea*   
place x appe>s & ins]t+ ! ,commission2  

7#c7 by /rik+ ,! ,bo>d ea* place x      
appe>s & ins]t+ ,! ,commission2 &  7#d7 
by /rik+ ! ,bo>d's ea* place x appe>s & 
ins]t+ ! ,commission's4  7b7 ,repeals   
,sections #ajd1 #aje1 & #ajg ( !        
,s>banes-,oxley ,act ( #bjjb 7#ae       
,u4,s4,c4 #gbad2 #ae ,u4,s4,c4 #gbae2   
#ae ,u4,s4,c4 #gbag7 are repeal$4  7c7  
,ref]5ces ,beg9n+ on ! date t is #b ye>s
 aft] ! date ( ! enactm5t ( ?is ,act1   
any ref]5ce to ! ,public ,company       
,acc\nt+ ,ov]sight ,bo>d 9 any law1     
regulation1 map1 docum5t1 record1 or o!r
 pap] ( ! ,unit$ ,/ates %all be deem$ to
 be a ref]5ce to ! ,(fice ( ,public     
,acc\nt+ ,ov]sight ( ! ,(fice ( ! ,*ief 
,acc\ntant ( ! ,securities & ,ex*ange   
,commission4  7d7 ,t]m9ation ( exi/+    
,bo>d ,! ,public ,company ,acc\nt+      
,ov]sight ,bo>d %all t]m9ate on ! date t
 is #b ye>s aft] ! date ( ! enactm5t (  
?is ,act4  #ejb4 ,e/abli%m5t2           
adm9i/rative provisions  7a7 ,9 g5]al   
,section #aja ( ! ,s>banes-,oxley ,act (
 #bjjb 7#ae ,u4,s4,c4 #gbaa7 is am5d$-- 

7#a7 by am5d+ subsection 7a7 to read z  
foll[s3  7a7 ,e/abli%m5t ( ,(fice ,!re  
is e/abli%$ 9 ! ,(fice ( ! ,*ief        
,acc\ntant ( ! ,commission an ,(fice (  
,public ,acc\nt+ ,ov]sight1 to ov]see ! 
audit ( companies t are subject to !    
securities laws1 & relat$ matt]s1 9 ord]
 to protect ! int]e/s ( inve/ors & fur!r
 ! public int]e/ 9 ! prep>ation (       
in=mative1 accurate1 & indep5d5t audit  
reports4  2  7#b7 by am5d+ subsection   
7b7 to read z foll[s3  7b7 ,director ,! 
,*ief ,acc\ntant ( ! ,(fice ( ! ,*ief   
,acc\ntant ( ! ,commission %all s]ve z !
 ,director ( ! ,(fice ( ,public ,acc\nt+
 ,ov]sight4  2  7#c7 9 subsection 7c7-- 
7,a7 9 ! head+1 by /rik+ ! ,bo>d &      
ins]t+ ! ,commission2  7,b7 by /rik+ 1  
subject to action by ! ,commission "u   
section #ajg1 & once a det]m9ation is   
made by ! ,commission "u subsection 7d7 
( ?is section2  7,c7 9 p>agraph 7#c71 by
 /rik+ section #ajd & ins]t+ subsection 
7e72  7,d7 9 p>agraph 7#d71 by /rik+    
section #aje & ins]t+ subsection 7f72   

7,e7 9 p>agraph 7#e7-- 7i7 by /rik+ !   
,bo>d 7or ! ,commission1 by rule or     
ord]7 & ins]t+ ! ,commission2 &  7ii7 by
 ins]t+ & aft] ! semicolon2  7,f7 9     
p>agraph 7#f7-- 7i7 by /rik+ ! rules ( !
 ,bo>d & ins]t+ ! rules ( ! ,commission2
 &  7ii7 by /rik+ 2 & & ins]t+ a p]iod2 
&  7,g7 by /rik+ p>agraph 7#g72  7#d7 9 
subsection 7d7-- 7,a7 by /rik+ ,! memb]s
 ( ! ,bo>d & ins]t+ ,! ,*ief ,acc\ntant 
( ! ,commission2  7,b7 by /rik+ #bgj    
days aft] ! date ( enactm5t ( ?is ,act &
 ins]t+ #a ye> aft] ! date ( ! enactm5t 
( ! ,,sec ,re=m & ,re/ructur+ ,act2 &   
7,c7 by /rik+ ! la/ s5t5ce2  7#e7 by    
/rik+ subsections 7e71 7f71 7g71 & 7h72 
&  7#f7 by ins]t+ aft] subsection 7d7 ! 
foll[+3  7e7 ,inspections ( regi/]$     
public acc\nt+ firms ,! ,(fice %all     
conduct a cont9u+ program ( inspections 
to assess ! degree ( compliance ( ea*   
regi/]$ public acc\nt+ firm & associat$ 
p]sons ( t firm ) ?is ,act1 ! rules ( ! 
,commission1 or pr(essional /&>ds1 9    
connection ) its p]=mance ( audits1     

issuance ( audit reports1 & relat$      
matt]s involv+ issu]s4  7f7             
,inve/igations & discipl9>y proce$+s ,! 
,commission %all e/abli%1 by rule1 fair 
proc$ures = ! inve/igation & discipl9+ (
 regi/]$ public acc\nt+ firms &         
associat$ p]sons ( su* firms4  4  7b7   
,publication ( rules ,! ,commission     
%all1 promptly aft] ! creation ( !      
,(fice1 cause to be publi%$ 9 ! ,f$]al  
,regi/] a notice t all rules ( ! ,public
 ,company ,acc\nt+ ,ov]sight ,bo>d %all 
rema9 9 effect z ,commission rules ^u ! 
t]m9ation ( ! ,public ,company ,acc\nt+ 
,ov]sight ,bo>d4  #ejc4 ,regi/ration ) !
 ,(fice ,section #ajb ( !               
,s>banes-,oxley ,act ( #bjjb 7#ae       
,u4,s4,c4 #gbab7 is am5d$-- 7#a7 9 !    
section head+ by /rik+ ! ,bo>d & ins]t+ 
! ,(fice2  7#b7 9 subsection            
7b77#b77;,h71 by /rik+ ! ,bo>d or2  7#c7
 9 subsection 7c7-- 7,a7 by /rik+       
,applications4-- & all t foll[s ?r\gh ,!
 ,bo>d & ins]t+ ,applications4--,!      
,bo>d2 &  7,b7 by /rik+ p>agraph 7#b72  

7#d7 9 subsection 7d71 by /rik+ ! ,bo>d 
or2 &  7#e7 9 subsection 7e71 by /rik+ !
 ,bo>d or4  #ejd4 ,audit+1 quality      
control1 /&>ds1 & rules ,section #ajc ( 
! ,s>banes-,oxley ,act ( #bjjb 7#ae     
,u4,s4,c4 #gbac7 is am5d$-- 7#a7 9 !    
head+1 by /rik+ & indep5d5ce /&>ds &    
ins]t+ /&>ds12  7#b7 9 subsection       
7a77#c7-- 7,a7 9 subp>agraph 7,a77i71 by
 /rik+ 1 subject to ! t]ms ( section    
#ajg12  7,b7 by /rik+ subp>agraph 7,b72 
&  7,c7 by r$esignat+ subp>agraph 7,c7 z
 subp>agraph 7,b72  7#c7 9 subsection   
7c7 9 ! head+ ( p>agraph 7#b71 by /rik+ 
,bo>d & ins]t+ ,(fice2 &  7#d7 9        
subsection 7d71 by /rik+ ,! ,bo>d %all  
include 9 ! annual report requir$ by    
section #aja7;h7 & ins]t+ ,! ,commission
 %all include 9 ! ,commission's annual  
p]=mance report to ,congress4  #eje4    
,=eign public acc\nt+ firms ,section    
#ajf ( ! ,s>banes-,oxley ,act ( #bjjb   
7#ae ,u4,s4,c4 #gbaf7 is am5d$-- 7#a7 9 
! head+ ( subsection 7a77#b71 by /rik+  
,bo>d & ins]t+ ,(fice2  7#b7 by /rik+ or

 ! ,bo>d ea* place su* t]m appe>s2  7#c7
 9 subsection 7a71 by /rik+ ! ,bo>d &2 &
  7#d7 9 subsection 7c7-- 7,a7 by /rik+ 
& ! ,bo>d1 subject to ! approval ( !    
,commission1 may12 &  7,b7 by /rik+ 7or 
,bo>d74  #ejf4 ,fund+ ,section #aji ( ! 
,s>banes-,oxley ,act ( #bjjb 7#ae       
,u4,s4,c4 #gbai7 is am5d$-- 7#a7 by     
am5d+ subsection 7b7 to read z foll[s3  
7b7 ,annual budgets  7#a7 ,/&>d sett+   
body ,! /&>d sett+ body ref]r$ to 9     
subsection 7a7 %all e/abli% a budget =  
ea* fiscal ye>1 :i* %all be-- 7,a7      
review$ & approv$ accord+ to _!         
respective int]nal proc$ures n less ?an 
#a mon? prior to ! comm5cem5t ( ! fiscal
 ye> to :i* ! budget p]ta9s2 &  7,b7    
subject to approval by ! ,commission4   
7#b7 ,! ,(fice ,! ,commission %all      
e/abli% ! budget = ! ,(fice = ea* fiscal
 ye>4  2  7#b7 9 subsection 7c7-- 7,a7  
by am5d+ p>agraph 7#a7 to read z foll[s3
  7#a7 ,recov]able budget exp5ses  7,a7 
,/&>d sett+ body ,! budget ( ! /&>d     
sett+ body ref]r$ to 9 subsection 7a7 = 

ea* fiscal ye> %all be payable f annual 
acc\nt+ support fees1 9 accordance )    
subsections 7d7 & 7e74 ,acc\nt+ support 
fees & o!r receipts ( su* /&>d-sett+    
body %all n be consid]$ public monies ( 
! ,unit$ ,/ates4  7,b7 ,! ,(fice ,!     
budget ( ! ,(fice 7r$uc$ by any         
regi/ration or annual fees receiv$ "u   
section #ajb7;f7 = ! ye> prec$+ ! ye> = 
:i* ! budget is be+ comput$7 = ea*      
fiscal ye> may be payable f annual      
acc\nt+ support fees1 9 accordance )    
subsections 7d7 & 7e74 ,acc\nt+ support 
fees & o!r receipts ( ! ,(fice %all n be
 consid]$ public monies ( ! ,unit$      
,/ates4  2  7,b7 9 p>agraph 7#b71 by    
/rik+ %all & ins]t+ may2  7#c7 9        
subsection 7d7-- 7,a7 9 ! head+1 by     
/rik+ ! ,bo>d & ins]t+ ! ,(fice2  7,b7 9
 p>agraph 7#a71 by /rik+ ,! ,bo>d %all  
e/abli%1 ) ! approval ( ! ,commission1 &
 ins]t+ ,! ,commission may e/abli%2     
7,c7 9 p>agraph 7#b71 by /rik+ %all &   
ins]t+ may2 &  7,d7 by /rik+ p>agraph   
7#c72  7#d7 9 subsection 7j7-- 7,a7 by  

/rik+ ei!r ! ,bo>d12 &  7,b7 by /rik+ 1 
or bo?12 &  7#e7 by /rik+ subsection    
7k74  #ejg4 ,def9itions ,section #aaj ( 
! ,s>banes-,oxley ,act ( #bjjb 7#ae     
,u4,s4,c4 #gbbj7 is am5d$-- 7#a7 9      
p>agraph 7#a71 by /rik+ ! ,bo>d or2     
7#b7 by r$esignat+ p>agraphs 7#e7 & 7#f7
 z p>agraphs 7#f7 & 7#g72  7#c7 by      
ins]t+ aft] p>agraph 7#d7 ! foll[+3     
7#e7 ,(fice ,! t]m ,(fice means ! ,(fice
 ( ,public ,acc\nt+ ,ov]sight ( ! ,(fice
 ( ! ,*ief ,acc\ntant ( ! ,commission4  
2 &  7#d7 9 subp>agraph 7,b7 ( p>agraph 
7#f71 z s r$esignat$1 by /rik+ ! ,bo>d  
or4  #ejh4 ,te*nical & con=m+ am5dm5ts  
7a7 ,def9itions ,section #b7;a7 ( !     
,s>banes-,oxley ,act ( #bjjb 7#ae       
,u4,s4,c4 #gbja7;a77 is am5d$-- 7#a7 9  
p>agraph 7#b71 by /rik+ ! ,bo>d or !    
,commission 7or1 = ! p]iod prec$+ !     
adoption ( applicable rules ( ! ,bo>d "u
 section #ajc1 9 accordance )           
!n-applicable g5]ally accept$ audit+ &  
relat$ /&>ds = su* purposes7 & ins]t+ ! 
,commission2  7#b7 by /rik+ p>agraphs   

7#e7 & 7#ac72  7#c7 by r$esignat+       
p>agraphs 7#f7 ?r\gh 7#ab7 & 7#ad7 ?r\gh
 7#ag7 z p>agraphs 7#e7 ?r\gh 7#ae71    
respectively2  7#d7 9 p>agraph 7#h71 z s
 r$esignat$-- 7,a7 9 subp>agraph 7,b71  
by /rik+ ,bo>d ea* place su* t]m appe>s 
& ins]t+ ,commission2 &  7,b7 9         
subp>agraph 7,c7-- 7i7 by /rik+ 1       
#aja7;c71 #aje1 & #ajg7;c7 & ! rules ( !
 ,bo>d & ,commission issu$ !reund] &    
ins]t+ & #aja7;c7 & ! rules ( !         
,commission !reund]2 &  7ii7 9 clause   
7ii77,,ii71 by /rik+ ,bo>d & ins]t+     
,commission2  7#e7 9 subp>agraph 7,b7 ( 
p>agraph 7#i71 z s r$esignat$-- 7,a7 by 
/rik+ ! ,bo>d or2  7,b7 9 clause 7ii71  
by /rik+ ,bo>d & ins]t+ ,commission2    
7#f7 9 subp>agraph 7,b7 ( p>agraph      
7#aj71 z s r$esignat$1 by /rik+ ,bo>d & 
ins]t+ ,commission2 &  7#g7 9 p>agraph  
7#aa71 z s r$esignat$1 by /rik+ ,bo>d & 
ins]t+ ,commission4  7b7 ,commission    
rules & en=cem5t ,section #c ( !        
,s>banes-,oxley ,act ( #bjjb 7#ae       
,u4,s4,c4 #gbjb7 is am5d$-- 7#a7 9      

subsection 7b71 by /rik+ or any rule ( !
 ,bo>d2 &  7#b7 9 subsection 7c71 by    
/rik+ or ! rules ( ! ,bo>d4  7c7        
,exemption au?ority ,section #bja7;b7 ( 
! ,s>banes-,oxley ,act ( #bjjb 7#ae     
,u4,s4,c4 #gbca7;b77 is am5d$-- 7#a7 by 
/rik+ ,! ,bo>d may & ins]t+ ,!          
,commission may2 &  7#b7 by /rik+ 9 !   
same mann] z = rules ( ! ,bo>d "u       
section #ajg4  7d7 ,int]nal control     
evaluation & report+ ,section #djd7;b7 (
 ! ,s>banes-,oxley ,act ( #bjjb 7#ae    
,u4,s4,c4 #gbfb7;b77 is am5d$ by /rik+  
,bo>d & ins]t+ ,commission4  7e7        
,self-,regulatory organization ,section 
#fjc7y77#c7 ( ! ,consum] ,cr$it         
,protection ,act 7#ae ,u4,s4,c4         
#afha;a7y77#c77 is am5d$ by /rik+ any   
entity e/abli%$ "u title ,i ( !         
,s>banes-,oxley ,act ( #bjjb14  7f7     
,cl]ical am5dm5t ,! table ( cont5ts 9   
section #a7;b7 ( ! ,s>banes-,oxley ,act 
( #bjjb is am5d$-- 7#a7 by /rik+ ! item 
relat+ to title ,i & ins]t+ ! foll[+ new
 item3  ,,title ,i--,,(fice ,,( ,,public

 ,,acc\nt+ ,,ov]sight  2  7#b7 9 ! item 
relat+ to section #ajb1 by /rik+ ! ,bo>d
 & ins]t+ ! ,(fice2  7#c7 9 ! item      
relat+ to section #ajc1 by /rik+ &      
indep5d5ce /&>ds & ins]t+ /&>ds12 &     
7#d7 by /rik+ ! items relat+ to sections
 #ajd1 #aje1 & #ajg4  #eji4 ,rule (     
con/ruction ) respect to coop]ative     
arrangem5ts ,no?+ 9 ?is title1 or !     
am5dm5ts made by ?is title1 %all be     
con/ru$ to invalidate or o!rwise affect 
a coop]ative arrangem5t or agreem5t     
betwe5 ! ,public ,company ,acc\nt+      
,ov]sight ,bo>d & a =eign auditor       
ov]sight au?ority 7z def9$ 9 section    
#b7;a7 ( ! ,s>banes-,oxley ,act ( #bjjb 
7#ae ,u4,s4,c4 #gbja7;a777 9 effect on !
 date t is #b ye>s aft] ! date ( !      
enactm5t ( ?is ,act4  #eaj4 ,regulations
 ,! ,securities & ,ex*ange ,commission  
may issue su* regulations z may be      
necess>y to c>ry out ?is title4  #eaa4  
,effective date ,! am5dm5ts made by ?is 
title %all take effect on ! date t is #b
 ye>s aft] ! date ( ! enactm5t ( ?is    

,act4  ,,vi ,/udy ,reg>d+ ,major ,rules 
,issu$ by ! ,securities & ,ex*ange      
,commission  #fja4 ,,gao /udy reg>d+    
major rules ,section #d ( ! ,securities 
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;d71 z am5d$ by section #bja1 is     
fur!r am5d$ by add+ at ! end ! foll[+3  
7l7 ,,gao /udy reg>d+ major rules  7#a7 
,/udy requir$  7,a7 ,9 g5]al ,subject to
 subp>agraph 7,c71 n lat] ?an #a ye>    
aft] ! date ( ! enactm5t ( ?is          
subsection1 & e #c ye>s !reaft]1 !      
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all c>ry out a /udy on ea* ( ! major   
rules issu$ by ! ,commission s9ce ! la/ 
su* review4  7,b7 ,elem5ts ,! /udy      
requir$ "u subp>agraph 7,a7 %all        
include1 ) respect to ea* major rule    
describ$ 9 su* subp>agraph-- 7i7 a co/  
b5efit analysis ( su* major rule2  7ii7 
a comp>ison betwe5 ! co/ b5efit analysis
 "u clause 7i7 & ! co/ b5efit analysis =
 ! same major rule c>ri$ out by !       
,commission2  7iii7 a comp>ison betwe5 !
 project$ co/s ( ! major rule & ! actual

 co/s ( ! major rule2 &  7iv7 an        
evaluation ( :e!r ea* major rule-- 7,i7 
facilitates capital =mation2  7,,ii7    
promotes fair1 effici5t m>kets2 &       
7,,iii7 protects inve/ors4  7,c7        
,special rule ,if a /udy requir$ "u     
subp>agraph 7,a7 w\ld apply to m ?an #aj
 major rules1 ! ,comptroll] ,g5]al %all 
review only ! #aj major rules t are !   
mo/ significant1 z det]m9$ by !         
,comptroll] ,g5]al4  7#b7 ,report ,n    
lat] ?an #a ye> aft] complet+ a /udy "u 
p>agraph 7#a71 ! ,comptroll] ,g5]al %all
 submit to ! ,committee on ,f9ancial    
,s]vices ( ! ,h\se ( ,repres5tatives & !
 ,committee on ,bank+1 ,h\s+1 & ,urban  
,affairs ( ! ,s5ate a report t          
includes-- 7,a7 ! results ( su* /udy2 & 
7,b7 ) respect to any major rule review$
 9 su* /udy t has n yet be5 fully       
implem5t$ by ! ,commission1 a /atem5t t 
! ,comptroll] ,g5]al is unable to fully 
analyze ! co/s ( ! major rule at ! "t ! 
report is submitt$4  7#c7 ,major rule   
def9$ ,9 ?is subsection1 ! t]m major    

rule has ! mean+ giv5 ! t]m 9 section   
#hjd ( title #e1 ,unit$ ,/ates ,code4  4
  ,,vii ,m9imum public comm5t p]iod     
#gja4 ,m9imum public comm5t p]iod       
,section #d ( ! ,securities ,ex*ange    
,act ( #aicd 7#ae ,u4,s4,c4 #gh;d71 z   
am5d$ by section #fja1 is fur!r am5d$ by
 add+ at ! end ! foll[+3  7m7 ,m9imum   
public comm5t p]iod  7#a7 ,9 g5]al ,)   
respect to a propos$ rulemak+ = :i* a   
public comm5t p]iod is requir$ "u       
section #eec ( title #e1 ,unit$ ,/ates  
,code1 ! ,commission %all provide a     
public comm5t p]iod (-- 7,a7 at lea/ #fj
 days2 or  7,b7 if ! ,commission        
det]m9es ! propos$ rule addresses imm95t
 inve/or h>m1 at lea/ #cj days4  7#b7   
,calculation ( p]iods ,= purposes (     
calculat+ ! numb] ( days 9 a p]iod "u   
p>agraph 7#a7 ) respect to a propos$    
rulemak+-- 7,a7 a ,f$]al holiday %all n 
be c\nt$2 &  7,b7 ! p]iod %all beg9 on !
 date ! propos$ rule is publi%$ 9 !     
,f$]al ,regi/]4  4  ,,viii ,securities  
,en=cem5t ,cl>ity  #hja4 ,det]m9ation ( 

! numb] ( violations  7a7 ,securities   
,act ( #aicc ,! ,securities ,act ( #aicc
 is am5d$-- 7#a7 9 section #h;,a7g7 7#ae
 ,u4,s4,c4 #gg;h-#a7;g771 by add+ at !  
end ! foll[+3  7#d7 ,det]m9ation ( numb]
 ( violations ,= purposes ( det]m9+ !   
numb] ( violations = :i* to impose      
p5alties "u p>agraph 7#a71 sep>ate acts 
( noncompliance are a s+le violation :5 
! acts are ! result (-- 7,a7 a common or
 a sub/antially ov]lapp+ orig9at+ cause2
  7,b7 ! same mis/atem5t or omission2 or
  7,c7 a cont9u+ failure to comply4  2 &
  7#b7 9 section #bj7;d7 7#ae ,u4,s4,c4 
#ggt7d771 by add+ at ! end ! foll[+3    
7#e7 ,det]m9ation ( numb] ( violations  
,= purposes ( det]m9+ ! numb] (         
violations = :i* to impose p5alties "u  
p>agraph 7#a71 sep>ate acts (           
noncompliance are a s+le violation :5 ! 
acts are ! result (-- 7,a7 a common or a
 sub/antially ov]lapp+ orig9at+ cause2  
7,b7 ! same mis/atem5t or omission2 or  
7,c7 a cont9u+ failure to comply4  4    
7b7 ,securities ,ex*ange ,act ( #aicd ,!

 ,securities ,ex*ange ,act ( #aicd is   
am5d$-- 7#a7 9 section #ba7;d77#c7 7#ae 
,u4,s4,c4 #ghu7d77#c771 by add+ at ! end
 ! foll[+3  7,e7 ,det]m9ation ( numb] ( 
violations ,= purposes ( det]m9+ ! numb]
 ( violations = :i* to impose p5alties  
"u subp>agraph 7,a77i71 sep>ate acts (  
noncompliance are a s+le violation :5 ! 
acts are ! result (-- 7i7 a common or a 
sub/antially ov]lapp+ orig9at+ cause2   
7ii7 ! same mis/atem5t or omission2 or  
7iii7 a cont9u+ failure to comply4  2   
7#b7 9 section #ba;,b7a7 7#ae ,u4,s4,c4 
#ghu-#b7;b771 by add+ at ! end ! foll[+3
  7#c7 ,det]m9ation ( numb] (           
violations1 acts1 or omissions ,=       
purposes ( det]m9+ ! numb] ( violations1
 acts1 or omissions = :i* to impose     
p5alties "u ?is subsection1 sep>ate acts
 ( noncompliance are a s+le violation1  
act1 or omission :5 ! acts are ! result 
(-- 7,a7 a common or a sub/antially     
ov]lapp+ orig9at+ cause2  7,b7 ! same   
mis/atem5t or omission2 or  7,c7 a      
cont9u+ failure to comply4  2 &  7#c7 9 

section #cb 7#ae ,u4,s4,c4 #gh;ff71 by  
add+ at ! end ! foll[+3  7d7            
,det]m9ation ( numb] ( violations ,=    
purposes ( det]m9+ ! numb] ( violations 
= :i* to impose p5alties "u subsection  
7c71 sep>ate acts ( noncompliance are a 
s+le violation :5 ! acts are ! result   
(-- 7#a7 a common or a sub/antially     
ov]lapp+ orig9at+ cause2  7#b7 ! same   
mis/atem5t or omission2 or  7#c7 a      
cont9u+ failure to comply4  4  7c7      
,inve/m5t ,company ,act ( #aidj ,!      
,inve/m5t ,company ,act ( #aidj is      
am5d$-- 7#a7 9 section #i7;d7 7#ae      
,u4,s4,c4 #hj;a-#i7;d771 by add+ at !   
end ! foll[+3  7#e7 ,det]m9ation ( numb]
 ( violations1 acts1 or omissions ,=    
purposes ( det]m9+ ! numb] ( violations1
 acts1 or omissions = :i* to impose     
p5alties "u p>agraph 7#a71 sep>ate acts 
( noncompliance are a s+le violation1   
act1 or omission :5 ! acts are ! result 
(-- 7,a7 a common or a sub/antially     
ov]lapp+ orig9at+ cause2  7,b7 ! same   
mis/atem5t or omission2 or  7,c7 a      

cont9u+ failure to comply4  2 &  7#b7 9 
section #db7;e7 7#ae ,u4,s4,c4          
#hj;a-#da7;e771 by add+ at ! end !      
foll[+3  7#e7 ,det]m9ation ( numb] (    
violations ,= purposes ( det]m9+ ! numb]
 ( violations = :i* to impose p5alties  
"u p>agraph 7#a71 sep>ate acts (        
noncompliance are a s+le violation :5 ! 
acts are ! result (-- 7,a7 a common or a
 sub/antially ov]lapp+ orig9at+ cause2  
7,b7 ! same mis/atem5t or omission2 or  
7,c7 a cont9u+ failure to comply4  4    
7d7 ,inve/m5t ,advisors ,act ( #aidj ,! 
,inve/m5t ,advis]s ,act ( #aidj is      
am5d$-- 7#a7 9 section #bjc7;i7 7#ae    
,u4,s4,c4 #hj;b-#c7;i771 by add+ at !   
end ! foll[+3  7#e7 ,det]m9ation ( numb]
 ( violations1 acts1 or omissions ,=    
purposes ( det]m9+ ! numb] ( violations1
 acts1 or omissions = :i* to impose     
p5alties "u p>agraph 7#a71 sep>ate acts 
( noncompliance are a s+le violation1   
act1 or omission :5 ! acts are ! result 
(-- 7,a7 a common or a sub/antially     
ov]lapp+ orig9at+ cause2  7,b7 ! same   

mis/atem5t or omission2 or  7,c7 a      
cont9u+ failure to comply4  2 &  7#b7 9 
section #bji7;e7 7#ae ,u4,s4,c4         
#hj;b-#i7;e771 by add+ at ! end !       
foll[+3  7#e7 ,det]m9ation ( numb] (    
violations ,= purposes ( det]m9+ ! numb]
 ( violations = :i* to impose p5alties  
"u p>agraph 7#a71 sep>ate acts (        
noncompliance are a s+le violation :5 ! 
acts are ! result (-- 7,a7 a common or a
 sub/antially ov]lapp+ orig9at+ cause2  
7,b7 ! same mis/atem5t or omission2 or  
7,c7 a cont9u+ failure to comply4  4    
,,ix ,,sec ,mod]nization  #ija4         
,commission organization  7a7 ,review ( 
! organization ( ! ,commission  7#a7    
,review requir$ ,n lat] ?an #ahj days   
aft] ! date ( enactm5t ( ?is ,act1 !    
,*airman ( ! ,securities & ,ex*ange     
,commission %all conduct a review ( !   
organizational /ructure ( ! ,commission1
 includ+ ! (fices & (ficials t report   
directly to ! ,*airman4  7#b7           
,reorganization ,n lat] ?an #ij days    
aft] complet+ ! review requir$ "u       

p>agraph 7#a71 ! ,*airman %all1 to !    
ext5t practicable & consi/5t )          
applicable law1 r$uce ! numb] ( (fices &
 (ficials report+ directly to ! ,*airman
 by reassign+ su* (fices & (ficials )9 !
 organizational /ructure ( !            
,commission4  7#c7 ,report ,n lat] ?an  
#cj days aft] complet+ ! reorganization 
requir$ "u p>agraph 7#b71 ! ,*airman    
%all submit to ! ,committee on ,f9ancial
 ,s]vices ( ! ,h\se ( ,repres5tatives & 
! ,committee on ,bank+1 ,h\s+1 & ,urban 
,affairs ( ! ,s5ate a report conta9+--  
7,a7 a description ( ! (fices & (ficials
 t report$ directly to ! ,*airman on !  
date ( enactm5t ( ?is ,act2  7,b7 an    
id5tification ( ! (fices & (ficials ^:  
report+ relation%ips are requir$ by     
/atute2  7,c7 a description ( ! *anges  
made pursuant to p>agraph 7#b72  7,d7 an
 id5tification ( any (fices or (ficials 
t cont9ue to report directly to !       
,*airman & ! reasons su* report+        
relation%ips 7 reta9$2 &  7,e7 any      
legislative recomm5dations = fur!r r$uc+

 ! numb] ( (fices & (ficials report+    
directly to ! ,*airman4  7#d7           
,pres]vation ( ,commission au?ority ,?is
 subsection %all n prohibit !           
,commission f reorganiz+ ! (fices       
describ$ 9 ?is subsection 9 ! future1 if
 ! ,commission det]m9es su*             
reorganization is necess>y or           
appropriate 9 ! public int]e/ or = !    
protection ( inve/ors4  7b7 ,regional   
(fice consolidation ,! ,securities &    
,ex*ange ,commission %all1 if !         
,commission det]m9es x appropriate1     
consolidate ! regional (fices ( !       
,commission4  ,septemb] #c1             
#bjbf,report$ ) an am5dm5t1 committ$ to 
! ,committee ( ! ,:ole ,h\se on ! ,/ate 
( ! ,union1 & ord]$ to be pr9t$