116TH CONGRESS 

1ST SESSION H. R. 4344 

AN ACT 

To amend the Securities Exchange Act of 1934 to allow 

the Securities and Exchange Commission to seek and 

Federal courts to grant disgorgement of unjust enrichment, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Investor Protection 

3 and Capital Markets Fairness Act’’. 

4 SEC. 2. ADDITIONAL RELIEF. 

5 (a) IN GENERAL.—Section 21(d) of the Securities 

6 Exchange Act of 1934 (15 U.S.C. 78u(d)) is amended by 

7 adding at the end the following: 

8 ‘‘(7) ADDITIONAL RELIEF.— 

9 ‘‘(A) IN GENERAL.—In any action or pro10 ceeding brought or instituted by the Commis11 sion under any provision of the securities laws, 

12 the Commission may seek, and any Federal 

13 court may grant the following additional relief: 

14 ‘‘(i) Disgorgement in the amount of 

15 any unjust enrichment obtained as a result 

16 of the act or practice with respect to which 

17 the Commission is bringing such an action 

18 or proceeding. 

19 ‘‘(ii) Injunctions, including officer and 

20 director bars. 

21 ‘‘(B) RULE OF CONSTRUCTION.—Addi22 tional relief sought under this paragraph may 

23 not be construed to be a civil fine, penalty, or 

24 forfeiture subject to chapter 163 of part VI of 

25 title 28, United States Code. 
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1 ‘‘(C) STATUTE OF LIMITATIONS.—A Fed2 eral court may not issue relief under this para3 graph if the action or proceeding brought or in4 stituted by the Commission was commenced 

5 more than 14 years after the alleged violation.’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply with respect to any actions or pro8 ceedings pending or commenced on or after the date of 

9 the enactment of this section. 

10 (c) REPORT.— 

11 (1) IN GENERAL.—Not later than 10 years 

12 after the date of the enactment of this Act, the Se13 curities Exchange Commission shall submit to Con14 gress data about each enforcement action brought by 

15 the Commission in the 10 years following the date 

16 of the enactment of this Act. 

17 (2) CONTENTS.—In submitting data pursuant 

18 to paragraph (1), the Commission shall— 

19 (A) with regard to each enforcement ac20 tion— 

21 (i) categorize the type of enforcement 

22 action; 

23 (ii) categorize the type of issuer in24 volved in the enforcement action; 
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1 (iii) identify the approximate duration 

2 of the misconduct that gave rise to the en3 forcement action; and 

4 (iv) identify the approximate duration 

5 of the investigation; and 

6 (B) identify the 10 enforcement actions 

7 with the longest durations of misconduct that 

8 gave rise to enforcement actions. 

9 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 

10 The budgetary effects of this Act, for the purpose of 

11 complying with the Statutory Pay-As-You-Go Act of 2010, 

12 shall be determined by reference to the latest statement 

13 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

14 Act, submitted for printing in the Congressional Record 

15 by the Chairman of the House Budget Committee, pro16 vided that such statement has been submitted prior to the 

17 vote on passage. 

Passed the House of Representatives November 18, 

2019. 

Attest: 

Clerk. 

116TH CONGRESS 

1ST SESSION H. R. 4344 

AN ACT 

To amend the Securities Exchange Act of 1934 to 

unjust enrichment, and for other purposes. seek and Federal courts to grant disgorgement of allow the Securities and Exchange Commission to