I 

111TH CONGRESS 

1ST SESSION H. R. 2623 

To amend the Federal securities laws to clarify and expand the definition 

of certain persons under those laws. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2009 

Mr. MCCARTHY of California introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To amend the Federal securities laws to clarify and expand 

the definition of certain persons under those laws. 

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

3 SECTION 1. FORMERLY ASSOCIATED PERSONS. 

4 (a) MEMBER OR EMPLOYEE OF THE MUNICIPAL SE5 CURITIES RULEMAKING BOARD.—Section 15B(c)(8) of 

6 the Securities Exchange Act of 1934 (15 U.S.C. 78o– 

7 4(c)(8)) is amended by striking ‘‘any member or em8 ployee’’ and inserting ‘‘any person who is, or at the time 

9 of the alleged misconduct was, a member or employee’’. 


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•HR 2623 IH

1 (b) PERSON ASSOCIATED WITH A GOVERNMENT SE2 CURITIES BROKER OR DEALER.—Section 15C of the Se3 curities Exchange Act of 1934 (15 U.S.C. 78o–5) is 

4 amended— 

5 (1) in subsection (c)(1)(C), by striking ‘‘or 

6 seeking to become associated,’’ and inserting ‘‘seek7 ing to become associated, or, at the time of the al8 leged misconduct, associated or seeking to become 

9 associated’’; 

10 (2) in subsection (c)(2)(A), by inserting ‘‘, seek11 ing to become associated, or, at the time of the al12 leged misconduct, associated or seeking to become 

13 associated’’ after ‘‘any person associated’’; and 

14 (3) in subsection (c)(2)(B), by inserting ‘‘, 

15 seeking to become associated, or, at the time of the 

16 alleged misconduct, associated or seeking to become 

17 associated’’ after ‘‘any person associated’’. 

18 (c) PERSON ASSOCIATED WITH A MEMBER OF A NA19 TIONAL SECURITIES EXCHANGE OR REGISTERED SECURI20 TIES ASSOCIATION.—Section 21(a)(1) of the Securities 

21 Exchange Act of 1934 (15 U.S.C. 78u(a)(1)) is amended 

22 by inserting ‘‘, or, as to any act or practice, or omission 

23 to act, while associated with a member, formerly associ24 ated’’ after ‘‘member or a person associated’’. 


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•HR 2623 IH

1 (d) PARTICIPANT OF A REGISTERED CLEARING

2 AGENCY.—Section 21(a)(1) of the Securities Exchange 

3 Act of 1934 (15 U.S.C. 78u(a)(1)) is amended by insert4 ing ‘‘or, as to any act or practice, or omission to act, while 

5 a participant, was a participant,’’ after ‘‘in which such 

6 person is a participant,’’. 

7 (e) OFFICER OR DIRECTOR OF A SELF-REGULATORY

8 ORGANIZATION.—Section 19(h)(4) of the Securities Ex9 change Act of 1934 (15 U.S.C. 78s(h)(4)) is amended— 

10 (1) by striking ‘‘any officer or director’’ and in11 serting ‘‘any person who is, or at the time of the al12 leged misconduct was, an officer or director’’; and 

13 (2) by striking ‘‘such officer or director’’ and 

14 inserting ‘‘such person’’. 

15 (f) OFFICER OR DIRECTOR OF AN INVESTMENT COM16 PANY.—Section 36(a) of the Investment Company Act of 

17 1940 (15 U.S.C. 80a–35(a)) is amended— 

18 (1) by striking ‘‘a person serving or acting’’ and 

19 inserting ‘‘a person who is, or at the time of the al20 leged misconduct was, serving or acting’’; and 

21 (2) by striking ‘‘such person so serves or acts’’ 

22 and inserting ‘‘such person so serves or acts, or at 

23 the time of the alleged misconduct, so served or 

24 acted’’. 

Æ 


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