(b) SECURITIES EXCHANGE ACT OF 1934.—The Se-
curities Exchange Act of 1934 is amended— 
(1) in section 21(d)(3) (15 U.S.C. 78u(d)(3)), 
by adding at the end the following: 
‘‘(E) DETERMINATION OF NUMBER OF VIOLA-
TIONS.—For purposes of determining the number of 
violations for which to impose penalties under sub-
paragraph (A)(i), separate acts of noncompliance are 
a single violation when the acts are the result of— 
‘‘(i) a common or a substantially overlap-
ping originating cause; 
‘‘(ii) the same misstatement or omission; 
or 
‘‘(iii) a continuing failure to comply.’’; 
(2) in section 21B(a) (15 U.S.C. 78u–2(b)), by 
adding at the end the following: 
‘‘(3) DETERMINATION OF NUMBER OF VIOLA-
TIONS, ACTS, OR OMISSIONS.—For purposes of de-
termining the number of violations, acts, or omis-
sions for which to impose penalties under this sub-
section, separate acts of noncompliance are a single 
violation, act, or omission when the acts are the re-
sult of— 
‘‘(A) a common or a substantially overlap-
ping originating cause; 
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‘‘(B) the same misstatement or omission; 
or 
‘‘(C) a continuing failure to comply.’’; and 
(3) in section 32 (15 U.S.C. 78ff), by adding at 
the end the following: 
‘‘(d) DETERMINATION
OF
NUMBER
OF
VIOLA-
TIONS.—For purposes of determining the number of viola-
tions for which to impose penalties under subsection (c), 
separate acts of noncompliance are a single violation when 
the acts are the result of— 
‘‘(1) a common or a substantially overlapping 
originating cause; 
‘‘(2) the same misstatement or omission; or 
‘‘(3) a continuing failure to comply.’’. 
(c) INVESTMENT COMPANY ACT OF 1940.—The In-
vestment Company Act of 1940 is amended— 
(1) in section 9(d) (15 U.S.C. 80a–9(d)), by 
adding at the end the following: 
‘‘(5) DETERMINATION OF NUMBER OF VIOLA-
TIONS, ACTS, OR OMISSIONS.—For purposes of de-
termining the number of violations, acts, or omis-
sions for which to impose penalties under paragraph 
(1), separate acts of noncompliance are a single vio-
lation, act, or omission when the acts are the result 
of— 
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‘‘(A) a common or a substantially overlap-
ping originating cause; 
‘‘(B) the same misstatement or omission; 
or 
‘‘(C) a continuing failure to comply.’’; and 
(2) in section 42(e) (15 U.S.C. 80a–41(e)), by 
adding at the end the following: 
‘‘(5) DETERMINATION OF NUMBER OF VIOLA-
TIONS.—For purposes of determining the number of 
violations for which to impose penalties under para-
graph (1), separate acts of noncompliance are a sin-
gle violation when the acts are the result of— 
‘‘(A) a common or a substantially overlap-
ping originating cause; 
‘‘(B) the same misstatement or omission; 
or 
‘‘(C) a continuing failure to comply.’’. 
(d) INVESTMENT ADVISORS ACT OF 1940.—The In-
vestment Advisers Act of 1940 is amended— 
(1) in section 203(i) (15 U.S.C. 80b–3(i)), by 
adding at the end the following: 
‘‘(5) DETERMINATION OF NUMBER OF VIOLA-
TIONS, ACTS, OR OMISSIONS.—For purposes of de-
termining the number of violations, acts, or omis-
sions for which to impose penalties under paragraph 
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(1), separate acts of noncompliance are a single vio-
lation, act, or omission when the acts are the result 
of— 
‘‘(A) a common or a substantially overlap-
ping originating cause; 
‘‘(B) the same misstatement or omission; 
or 
‘‘(C) a continuing failure to comply.’’; and 
(2) in section 209(e) (15 U.S.C. 80b–9(e)), by 
adding at the end the following: 
‘‘(5) DETERMINATION OF NUMBER OF VIOLA-
TIONS.—For purposes of determining the number of 
violations for which to impose penalties under para-
graph (1), separate acts of noncompliance are a sin-
gle violation when the acts are the result of— 
‘‘(A) a common or a substantially overlap-
ping originating cause; 
‘‘(B) the same misstatement or omission; 
or 
‘‘(C) a continuing failure to comply.’’. 
Æ 
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