---
kind: "section"
citation: "15 U.S.C. § 80a–9"
title: "15"
title_heading: "Commerce and Trade"
number: "80a–9"
heading: "Ineligibility of certain affiliated persons and underwriters"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/80a-9"
units:
  - "Chapter 2D — Investment Companies and Advisers"
  - "Subchapter I — Investment Companies"
---

# §80a–9. Ineligibility of certain affiliated persons and underwriters

- (a) **Persons deemed ineligible for service with investment companies, etc.; investment adviser—** It shall be unlawful for any of the following [persons](/usc/15/80a–2.md?p=a-28) to serve or act in the capacity of employee, officer, [director](/usc/15/80a–2.md?p=a-12), member of an [advisory board](/usc/15/80a–2.md?p=a-1), [investment adviser](/usc/15/80b–2.md?p=a-11), or depositor of any registered investment [company](/usc/15/80a–2.md?p=a-8), or principal underwriter for any registered open-end [company](/usc/15/80a–2.md?p=a-8), registered unit investment trust, or registered [face-amount certificate](/usc/15/80a–2.md?p=a-15) [company](/usc/15/80a–2.md?p=a-8):
  - (1) any [person](/usc/15/80a–2.md?p=a-28) who within 10 years has been [convicted](/usc/15/80a–2.md?p=a-10) of any felony or misdemeanor involving the purchase or sale of any [security](/usc/15/80a–2.md?p=a-36) or arising out of such [person](/usc/15/80a–2.md?p=a-28)’s conduct as an underwriter, [broker](/usc/15/80a–2.md?p=a-6), [dealer](/usc/15/80a–2.md?p=a-11), [investment adviser](/usc/15/80b–2.md?p=a-11), municipal [securities](/usc/15/80a–2.md?p=a-36) [dealer](/usc/15/80a–2.md?p=a-11), [government securities](/usc/15/80a–2.md?p=a-16) [broker](/usc/15/80a–2.md?p=a-6), [government securities](/usc/15/80a–2.md?p=a-16) [dealer](/usc/15/80a–2.md?p=a-11), [bank](/usc/15/80a–2.md?p=a-5), transfer agent, [credit rating agency](/usc/15/80a–2.md?p=a-53), or entity or [person](/usc/15/80a–2.md?p=a-28) required to be registered under the Commodity Exchange Act [[7 U.S.C. 1](/usc/7/1.md) et seq.], or as an affiliated [person](/usc/15/80a–2.md?p=a-28), salesman, or employee of any investment [company](/usc/15/80a–2.md?p=a-8), [bank](/usc/15/80a–2.md?p=a-5), [insurance company](/usc/15/80a–2.md?p=a-17), or entity or [person](/usc/15/80a–2.md?p=a-28) required to be registered under the Commodity Exchange Act;
  - (2) any [person](/usc/15/80a–2.md?p=a-28) who, by reason of any misconduct, is permanently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction from acting as an underwriter, [broker](/usc/15/80a–2.md?p=a-6), [dealer](/usc/15/80a–2.md?p=a-11), [investment adviser](/usc/15/80b–2.md?p=a-11), municipal [securities](/usc/15/80a–2.md?p=a-36) [dealer](/usc/15/80a–2.md?p=a-11), [government securities](/usc/15/80a–2.md?p=a-16) [broker](/usc/15/80a–2.md?p=a-6), [government securities](/usc/15/80a–2.md?p=a-16) [dealer](/usc/15/80a–2.md?p=a-11), [bank](/usc/15/80a–2.md?p=a-5), transfer agent, [credit rating agency](/usc/15/80a–2.md?p=a-53), or entity or [person](/usc/15/80a–2.md?p=a-28) required to be registered under the Commodity Exchange Act [[7 U.S.C. 1](/usc/7/1.md) et seq.], or as an affiliated [person](/usc/15/80a–2.md?p=a-28), salesman, or employee of any investment [company](/usc/15/80a–2.md?p=a-8), [bank](/usc/15/80a–2.md?p=a-5), [insurance company](/usc/15/80a–2.md?p=a-17), or entity or [person](/usc/15/80a–2.md?p=a-28) required to be registered under the Commodity Exchange Act, or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any [security](/usc/15/80a–2.md?p=a-36); or
  - (3) a [company](/usc/15/80a–2.md?p=a-8) any affiliated [person](/usc/15/80a–2.md?p=a-28) of which is ineligible, by reason of paragraph (1) or (2) of this subsection, to serve or act in the foregoing capacities.

  For the purposes of paragraphs (1) to (3) of this subsection, the term “[investment adviser](/usc/15/80b–2.md?p=a-11)” shall include an [investment adviser](/usc/15/80b–2.md?p=a-11) as defined in subchapter II of this chapter.

- (b) **Certain persons serving investment companies; administrative action of Commission—** The [Commission](/usc/15/80a–2.md?p=a-7) may, after notice and opportunity for hearing, by order prohibit, conditionally or unconditionally, either permanently or for such period of time as it in its discretion shall deem appropriate in the public interest, any [person](/usc/15/80a–2.md?p=a-28) from serving or acting as an employee, officer, [director](/usc/15/80a–2.md?p=a-12), member of an [advisory board](/usc/15/80a–2.md?p=a-1), [investment adviser](/usc/15/80b–2.md?p=a-11) or depositor of, or principal underwriter for, a registered investment [company](/usc/15/80a–2.md?p=a-8) or affiliated [person](/usc/15/80a–2.md?p=a-28) of such [investment adviser](/usc/15/80b–2.md?p=a-11), depositor, or principal underwriter, if such [person](/usc/15/80a–2.md?p=a-28)—
  - (1) has willfully made or caused to be made in any registration statement, application or report filed with the [Commission](/usc/15/80a–2.md?p=a-7) under this subchapter any statement which was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact, or has omitted to [state](/usc/15/80a–2.md?p=a-39) in any such registration statement, application, or report any material fact which was required to be stated therein;
  - (2) has willfully violated any provision of the Securities Act of 1933 [[15 U.S.C. 77a](/usc/15/77a.md) et seq.], or of the [Securities](/usc/15/80a–2.md?p=a-36) Exchange Act of 1934 [[15 U.S.C. 78a](/usc/15/78a.md) et seq.], or of subchapter II of this chapter, or of this subchapter, or of the Commodity Exchange Act [[7 U.S.C. 1](/usc/7/1.md) et seq.], or of any rule or regulation under any of such statutes;
  - (3) has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other [person](/usc/15/80a–2.md?p=a-28) of the Securities Act of 1933 [[15 U.S.C. 77a](/usc/15/77a.md) et seq.], or of the [Securities](/usc/15/80a–2.md?p=a-36) Exchange Act of 1934 [[15 U.S.C. 78a](/usc/15/78a.md) et seq.], or of subchapter II of this chapter, or of this subchapter, or of the Commodity Exchange Act [[7 U.S.C. 1](/usc/7/1.md) et seq.], or of any rule or regulation under any of such statutes;
  - (4) has been found by a [foreign financial regulatory authority](/usc/15/80a–2.md?p=a-50) to have—
    - (A) made or caused to be made in any application for registration or report required to be filed with a [foreign securities authority](/usc/15/80a–2.md?p=a-49), or in any proceeding before a [foreign securities authority](/usc/15/80a–2.md?p=a-49) with respect to registration, any statement that was at the time and in light of the circumstances under which it was made false or misleading with respect to any material fact, or has omitted to [state](/usc/15/80a–2.md?p=a-39) in any application or report to a [foreign securities authority](/usc/15/80a–2.md?p=a-49) any material fact that is required to be stated therein;
    - (B) violated any foreign statute or regulation regarding transactions in [securities](/usc/15/80a–2.md?p=a-36) or contracts of sale of a commodity for future delivery traded on or subject to the rules of a contract market or any board of trade; or
    - (C) aided, abetted, counseled, commanded, induced, or procured the violation by any other [person](/usc/15/80a–2.md?p=a-28) of any foreign statute or regulation regarding transactions in [securities](/usc/15/80a–2.md?p=a-36) or contracts of sale of a commodity for future delivery traded on or subject to the rules of a contract market or any board of trade;
  - (5) within 10 years has been [convicted](/usc/15/80a–2.md?p=a-10) by a foreign court of competent jurisdiction of a crime, however denominated by the laws of the relevant foreign government, that is substantially equivalent to an offense set forth in [paragraph (1)](#a-1) of subsection (a); or
  - (6) by reason of any misconduct, is temporarily or permanently enjoined by any foreign court of competent jurisdiction from acting in any of the capacities, set forth in [paragraph (2)](#a-2) of subsection (a), or a substantially equivalent foreign capacity, or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any [security](/usc/15/80a–2.md?p=a-36).
- (c) **Application of ineligible person for exemption—** Any [person](/usc/15/80a–2.md?p=a-28) who is ineligible, by reason of [subsection (a)](#a), to serve or act in the capacities enumerated in such subsection, may file with the [Commission](/usc/15/80a–2.md?p=a-7) an application for an exemption from the provisions of such subsection. The [Commission](/usc/15/80a–2.md?p=a-7) shall by order grant such application, either unconditionally or on an appropriate temporary or other conditional basis, if it is established that the prohibitions of such [subsection (a)](#a) as applied to such [person](/usc/15/80a–2.md?p=a-28), are unduly or disproportionately severe or that the conduct of such [person](/usc/15/80a–2.md?p=a-28) has been such as not to make it against the public interest or protection of investors to grant such application.
- (d) **Money penalties in administrative proceedings—**
  - (1) **Authority of Commission—**
    - (A) **In general—** In any proceeding instituted pursuant to [subsection (b)](#b) against any [person](/usc/15/80a–2.md?p=a-28), the [Commission](/usc/15/80a–2.md?p=a-7) may impose a civil penalty if it finds, on the record after notice and opportunity for hearing, that such penalty is in the public interest, and that such [person](/usc/15/80a–2.md?p=a-28)—
      - (i) has willfully violated any provision of the Securities Act of 1933 [[15 U.S.C. 77a](/usc/15/77a.md) et seq.], the [Securities](/usc/15/80a–2.md?p=a-36) Exchange Act of 1934 [[15 U.S.C. 78a](/usc/15/78a.md) et seq.], subchapter II of this chapter, or this subchapter, or the rules or regulations thereunder;
      - (ii) has willfully aided, abetted, counseled, commanded, induced, or procured such a violation by any other [person](/usc/15/80a–2.md?p=a-28); or
      - (iii) has willfully made or caused to be made in any registration statement, application, or report required to be filed with the [Commission](/usc/15/80a–2.md?p=a-7) under this subchapter, any statement which was, at the time and in the light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to [state](/usc/15/80a–2.md?p=a-39) in any such registration statement, application, or report any material fact which was required to be stated therein;[^1]
    - (B) **Cease-and-desist proceedings—** In any proceeding instituted pursuant to [subsection (f)](#f) against any [person](/usc/15/80a–2.md?p=a-28), the [Commission](/usc/15/80a–2.md?p=a-7) may impose a civil penalty if the [Commission](/usc/15/80a–2.md?p=a-7) finds, on the record, after notice and opportunity for hearing, that such [person](/usc/15/80a–2.md?p=a-28)—
      - (i) is violating or has violated any provision of this subchapter, or any rule or regulation issued under this subchapter; or
      - (ii) is or was a cause of the violation of any provision of this subchapter, or any rule or regulation issued under this subchapter.
  - (2) **Maximum amount of penalty—**
    - (A) **First tier—** The maximum amount of penalty for each act or omission described in [paragraph (1)](#d-1) shall be $5,000 for a natural [person](/usc/15/80a–2.md?p=a-28) or $50,000 for any other [person](/usc/15/80a–2.md?p=a-28).
    - (B) **Second tier—** Notwithstanding [subparagraph (A)](#d-2-A), the maximum amount of penalty for each such act or omission shall be $50,000 for a natural [person](/usc/15/80a–2.md?p=a-28) or $250,000 for any other [person](/usc/15/80a–2.md?p=a-28) if the act or omission described in [paragraph (1)](#d-1) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement.
    - (C) **Third tier—** Notwithstanding subparagraphs [(A)](#d-2-A) and [(B)](#d-2-B), the maximum amount of penalty for each such act or omission shall be $100,000 for a natural [person](/usc/15/80a–2.md?p=a-28) or $500,000 for any other [person](/usc/15/80a–2.md?p=a-28) if—
      - (i) the act or omission described in [paragraph (1)](#d-1) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
      - (ii) such act or omission directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other [persons](/usc/15/80a–2.md?p=a-28) or resulted in substantial pecuniary gain to the [person](/usc/15/80a–2.md?p=a-28) who committed the act or omission.
  - (3) **Determination of public interest—** In considering under this section whether a penalty is in the public interest, the [Commission](/usc/15/80a–2.md?p=a-7) may consider—
    - (A) whether the act or omission for which such penalty is assessed involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement;
    - (B) the harm to other [persons](/usc/15/80a–2.md?p=a-28) resulting either directly or indirectly from such act or omission;
    - (C) the extent to which any [person](/usc/15/80a–2.md?p=a-28) was unjustly enriched, taking into account any restitution made to [persons](/usc/15/80a–2.md?p=a-28) injured by such behavior;
    - (D) whether such [person](/usc/15/80a–2.md?p=a-28) previously has been found by the [Commission](/usc/15/80a–2.md?p=a-7), another appropriate regulatory agency, or a self-regulatory organization to have violated the Federal [securities](/usc/15/80a–2.md?p=a-36) laws, [State](/usc/15/80a–2.md?p=a-39) [securities](/usc/15/80a–2.md?p=a-36) laws, or the rules of a self-regulatory organization, has been enjoined by a court of competent jurisdiction from violations of such laws or rules, or has been [convicted](/usc/15/80a–2.md?p=a-10) by a court of competent jurisdiction of violations of such laws or of any felony or misdemeanor described in [section 80b–3(e)(2) of this title](/usc/15/80b–3.md?p=e-2);
    - (E) the need to deter such [person](/usc/15/80a–2.md?p=a-28) and other [persons](/usc/15/80a–2.md?p=a-28) from committing such acts or omissions; and
    - (F) such other matters as justice may require.
  - (4) **Evidence concerning ability to pay—** In any proceeding in which the [Commission](/usc/15/80a–2.md?p=a-7) may impose a penalty under this section, a respondent may present evidence of the respondent’s ability to pay such penalty. The [Commission](/usc/15/80a–2.md?p=a-7) may, in its discretion, consider such evidence in determining whether such penalty is in the public interest. Such evidence may relate to the extent of such [person](/usc/15/80a–2.md?p=a-28)’s ability to continue in business and the collectability of a penalty, taking into account any other claims of the United States or third parties upon such [person](/usc/15/80a–2.md?p=a-28)’s assets and the amount of such [person](/usc/15/80a–2.md?p=a-28)’s assets.
- (e) **Authority to enter order requiring accounting and disgorgement—** In any proceeding in which the [Commission](/usc/15/80a–2.md?p=a-7) may impose a penalty under this section, the [Commission](/usc/15/80a–2.md?p=a-7) may enter an order requiring accounting and disgorgement, including reasonable interest. The [Commission](/usc/15/80a–2.md?p=a-7) is authorized to adopt rules, regulations, and orders concerning payments to investors, rates of interest, periods of accrual, and such other matters as it deems appropriate to implement this subsection.
- (f) **Cease-and-desist proceedings—**
  - (1) **Authority of Commission—** If the [Commission](/usc/15/80a–2.md?p=a-7) finds, after notice and opportunity for hearing, that any [person](/usc/15/80a–2.md?p=a-28) is violating, has violated, or is about to violate any provision of this subchapter, or any rule or regulation thereunder, the [Commission](/usc/15/80a–2.md?p=a-7) may publish its findings and enter an order requiring such [person](/usc/15/80a–2.md?p=a-28), and any other [person](/usc/15/80a–2.md?p=a-28) that is, was, or would be a cause of the violation, due to an act or omission the [person](/usc/15/80a–2.md?p=a-28) knew or should have known would contribute to such violation, to cease and desist from committing or causing such violation and any future violation of the same provision, rule, or regulation. Such order may, in addition to requiring a [person](/usc/15/80a–2.md?p=a-28) to cease and desist from committing or causing a violation, require such [person](/usc/15/80a–2.md?p=a-28) to comply, or to take steps to effect compliance, with such provision, rule, or regulation, upon such terms and conditions and within such time as the [Commission](/usc/15/80a–2.md?p=a-7) may specify in such order. Any such order may, as the [Commission](/usc/15/80a–2.md?p=a-7) deems appropriate, require future compliance or steps to effect future compliance, either permanently or for such period of time as the [Commission](/usc/15/80a–2.md?p=a-7) may specify, with such provision, rule, or regulation with respect to any [security](/usc/15/80a–2.md?p=a-36), any [issuer](/usc/15/80a–2.md?p=a-22), or any other [person](/usc/15/80a–2.md?p=a-28).
  - (2) **Hearing—** The notice instituting proceedings pursuant to [paragraph (1)](#f-1) shall fix a hearing date not earlier than 30 days nor later than 60 days after service of the notice unless an earlier or a later date is set by the [Commission](/usc/15/80a–2.md?p=a-7) with the consent of any respondent so served.
  - (3) **Temporary order—**
    - (A) **In general—** Whenever the [Commission](/usc/15/80a–2.md?p=a-7) determines that the alleged violation or threatened violation specified in the notice instituting proceedings pursuant to [paragraph (1)](#f-1), or the continuation thereof, is likely to result in significant dissipation or conversion of assets, significant harm to investors, or substantial harm to the public interest, including, but not limited to, losses to the [Securities](/usc/15/80a–2.md?p=a-36) Investor Protection Corporation, prior to the completion of the proceeding, the [Commission](/usc/15/80a–2.md?p=a-7) may enter a temporary order requiring the respondent to cease and desist from the violation or threatened violation and to take such action to prevent the violation or threatened violation and to prevent dissipation or conversion of assets, significant harm to investors, or substantial harm to the public interest as the [Commission](/usc/15/80a–2.md?p=a-7) deems appropriate pending completion of such proceedings. Such an order shall be entered only after notice and opportunity for a hearing, unless the [Commission](/usc/15/80a–2.md?p=a-7), notwithstanding [section 80a–39(a) of this title](/usc/15/80a–39.md?p=a), determines that notice and hearing prior to entry would be impracticable or contrary to the public interest. A temporary order shall become effective upon service upon the respondent and, unless set aside, limited, or suspended by the [Commission](/usc/15/80a–2.md?p=a-7) or a court of competent jurisdiction, shall remain effective and enforceable pending the completion of the proceedings.
    - (B) **Applicability—** This paragraph shall apply only to a respondent that acts, or, at the time of the alleged misconduct acted, as a [broker](/usc/15/80a–2.md?p=a-6), [dealer](/usc/15/80a–2.md?p=a-11), [investment adviser](/usc/15/80b–2.md?p=a-11), investment [company](/usc/15/80a–2.md?p=a-8), municipal [securities](/usc/15/80a–2.md?p=a-36) [dealer](/usc/15/80a–2.md?p=a-11), [government securities](/usc/15/80a–2.md?p=a-16) [broker](/usc/15/80a–2.md?p=a-6), [government securities](/usc/15/80a–2.md?p=a-16) [dealer](/usc/15/80a–2.md?p=a-11), or transfer agent, or is, or was at the time of the alleged misconduct, an associated [person](/usc/15/80a–2.md?p=a-28) of, or a [person](/usc/15/80a–2.md?p=a-28) seeking to become associated with, any of the foregoing.
  - (4) **Review of temporary orders—**
    - (A) **Commission review—** At any time after the respondent has been served with a temporary cease-and-desist order pursuant to [paragraph (3)](#f-3), the respondent may apply to the [Commission](/usc/15/80a–2.md?p=a-7) to have the order set aside, limited, or suspended. If the respondent has been served with a temporary cease-and-desist order entered without a prior [Commission](/usc/15/80a–2.md?p=a-7) hearing, the respondent may, within 10 days after the date on which the order was served, request a hearing on such application and the [Commission](/usc/15/80a–2.md?p=a-7) shall hold a hearing and render a decision on such application at the earliest possible time.
    - (B) **Judicial review—** Within—
      - (i) 10 days after the date the respondent was served with a temporary cease-and-desist order entered with a prior [Commission](/usc/15/80a–2.md?p=a-7) hearing, or
      - (ii) 10 days after the [Commission](/usc/15/80a–2.md?p=a-7) renders a decision on an application and hearing under [subparagraph (A)](#f-4-A), with respect to any temporary cease-and-desist order entered without a prior [Commission](/usc/15/80a–2.md?p=a-7) hearing,

      the respondent may apply to the United States district court for the district in which the respondent resides or has its principal place of business, or for the District of Columbia, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease-and-desist order entered without a prior [Commission](/usc/15/80a–2.md?p=a-7) hearing may not apply to the court except after hearing and decision by the [Commission](/usc/15/80a–2.md?p=a-7) on the respondent’s application under subparagraph (A) of this paragraph.

    - (C) **No automatic stay of temporary order—** The commencement of proceedings under subparagraph (B) of this paragraph shall not, unless specifically ordered by the court, operate as a stay of the [Commission](/usc/15/80a–2.md?p=a-7)’s order.
    - (D) **Exclusive review—** [Section 80a–42 of this title](/usc/15/80a–42.md) shall not apply to a temporary order entered pursuant to this section.
  - (5) **Authority to enter order requiring accounting and disgorgement—** In any cease-and-desist proceeding under [subsection (f)(1)](#f-1), the [Commission](/usc/15/80a–2.md?p=a-7) may enter an order requiring accounting and disgorgement, including reasonable interest. The [Commission](/usc/15/80a–2.md?p=a-7) is authorized to adopt rules, regulations, and orders concerning payments to investors, rates of interest, periods of accrual, and such other matters as it deems appropriate to implement this subsection.
- (g) **Corporate or other trustees performing functions of investment advisers—** For the purposes of this section, the term “[investment adviser](/usc/15/80b–2.md?p=a-11)” includes a corporate or other trustee performing the functions of an [investment adviser](/usc/15/80b–2.md?p=a-11).

## Footnotes

[^1]: So in original. The semicolon probably should be a period.

## Source credit

(Aug. 22, 1940, ch. 686, title I, § 9, 54 Stat. 805; Pub. L. 91–547, § 4, Dec. 14, 1970, 84 Stat. 1415; Pub. L. 94–29, § 28(6), June 4, 1975, 89 Stat. 166; Pub. L. 99–571, title I, § 102(l), Oct. 28, 1986, 100 Stat. 3220; Pub. L. 100–181, title VI, § 609, Dec. 4, 1987, 101 Stat. 1261; Pub. L. 101–429, title III, § 301, Oct. 15, 1990, 104 Stat. 941; Pub. L. 101–550, title II, § 205(a), Nov. 15, 1990, 104 Stat. 2718; Pub. L. 106–102, title II, § 222, Nov. 12, 1999, 113 Stat. 1401; Pub. L. 109–291, § 4(b)(2)(B), Sept. 29, 2006, 120 Stat. 1337; Pub. L. 111–203, title IX, §§ 929P(a)(3), 985(d)(2), July 21, 2010, 124 Stat. 1863, 1934.)

## Notes

### Editorial Notes

### References in Text

The Commodity Exchange Act, referred to in subsecs. (a)(1), (2) and (b)(2), (3), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.

The Securities Act of 1933, referred to in subsecs. (b)(2), (3) and (d)(1)(A)(i), is act May 27, 1933, ch. 38, title I, 48 Stat. 74, which is classified generally to subchapter I (§ 77a et seq.) of chapter 2A of this title. For complete classification of this Act to the Code, see section 77a of this title and Tables.

The Securities Exchange Act of 1934, referred to in subsecs. (b)(2), (3) and (d)(1)(A)(i), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified generally to 2B (§ 78a et seq.) of this title. For complete classification of this Act to the Code, see section 78a of this title and Tables.

### Amendments

2010—Subsec. (b)(4)(B). Pub. L. 111–203, § 985(d)(2), inserted “or” at end.

Subsec. (d)(1). Pub. L. 111–203, § 929P(a)(3), designated existing provisions as subpar. (A) and inserted heading, inserted “that such penalty is in the public interest, and” after “opportunity for hearing,” in introductory provisions, redesignated former subpars. (A) to (C) as cls. (i) to (iii), respectively, and realigned margins, struck out concluding provisions which read “and that such penalty is in the public interest.”, and added subpar. (B).

2006—Subsec. (a). Pub. L. 109–291 inserted “credit rating agency,” after “transfer agent,” in pars. (1) and (2).

1999—Subsec. (a)(1), (2). Pub. L. 106–102 substituted “securities dealer, bank, transfer agent,” for “securities dealer, transfer agent,”.

1990—Subsec. (b)(4) to (6). Pub. L. 101–550 added pars. (4) to (6).

Subsecs. (d) to (f). Pub. L. 101–429, § 301(1), (2), added subsecs. (d) to (f) and redesignated former subsec. (d) as (g).

Subsec. (g). Pub. L. 101–429, § 301(3), which directed the striking out of “subsections (a) through (c) of” after “the purposes of”, was executed by striking out “subsection (a) through (c) of” as the probable intent of Congress.

Pub. L. 101–429, § 301(1), redesignated subsec. (d) as (g).

1987—Subsec. (a)(1), (2). Pub. L. 100–181 amended pars. (1) and (2) generally. Prior to amendment, pars. (1) and (2) read as follows:

“(1) any person who within 10 years has been convicted of any felony or misdemeanor involving the purchase or sale of any security or arising out of such person’s conduct as an underwriter, broker, dealer, investment adviser, municipal securities dealer, government securities broker, government securities dealer, or entity or person required to be registered under the Commodity Exchange Act, or as an affiliated person, salesman, or employee of any investment company, bank, insurance company, or entity or person required to be registered under the Commodity Exchange Act;

“(2) any person who, by reason of any misconduct, is permanently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction from acting as an underwriter, broker, dealer, investment adviser, municipal securities dealer, government securities broker, government securities dealer, or entity or person required to be registered under the Commodity Exchange Act, or as an affiliated person, salesman, or employee of any investment company, bank, insurance company, or entity or person required to be registered under the Commodity Exchange Act, or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any security; or”.

1986—Subsec. (a)(1), (2). Pub. L. 99–571, § 102(l)(1), inserted pars. (1) and (2) and struck out former pars. (1) and (2) which read as follows:

“(1) any person who within ten years has been convicted of any felony or misdemeanor involving the purchase or sale of any security or arising out of such person’s conduct as an underwriter, broker, dealer, or investment adviser, or as an affiliated person, salesman, or employee of any investment company, bank, or insurance company;

“(2) any person who, by reason of any misconduct, is permanently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction from acting as an underwriter, broker, dealer, or investment adviser, or as an affiliated person, salesman, or employee of any investment company, bank, or insurance company, or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any security; or”.

Subsec. (b)(2), (3). Pub. L. 99–571, § 102(l)(2), (3), inserted reference to Commodity Exchange Act.

1975—Subsec. (d). Pub. L. 94–29 added subsec. (d).

1970—Subsec. (a). Pub. L. 91–547, § 4(a), inserted “employee,” before “officer” in introductory text.

Subsecs. (b), (c). Pub. L. 91–547, § 4(b), added subsec. (b) and redesignated former subsec. (b) as (c).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

### Effective Date of 1999 Amendment

Amendment by Pub. L. 106–102 effective 18 months after Nov. 12, 1999, see section 225 of Pub. L. 106–102, set out as a note under section 77c of this title.

### Effective Date of 1990 Amendment

Amendment by Pub. L. 101–429 effective Oct. 15, 1990, with provisions relating to civil penalties and accounting and disgorgement, see section 1(c)(1), (2) of Pub. L. 101–429, set out in a note under section 77g of this title.

### Effective Date of 1986 Amendment

Amendment by Pub. L. 99–571 effective 270 days after Oct. 28, 1986, see section 401 of Pub. L. 99–571, set out as an Effective Date note under section 78o–5 of this title.

### Effective Date of 1975 Amendment

Amendment by Pub. L. 94–29 effective June 4, 1975, see section 31(a) of Pub. L. 94–29, set out as a note under section 78b of this title.

### Effective Date of 1970 Amendment

Amendment by Pub. L. 91–547 effective Dec. 14, 1970, see section 30 of Pub. L. 91–547, set out as a note under section 80a–52 of this title.

### Executive Documents

### Transfer of Functions

For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.