House Financial Services Committee Considers Legislation that Would Make SEC Waivers More Difficult for Parties Settling with the Commission
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Key takeaways:
- The House Financial Services Committee is considering draft legislation entitled the Bad Actor Disqualification Act of 2019, which, if adopted, would create new procedures and establish new standards for the U.S. Securities and Exchange Commission to grant waivers from the automatic disqualification provisions under the federal securities laws.
- Were the draft legislation to become law, it could have significant implications for financial institutions and registered entities that utilize Rule 506 of Regulation D regularly because they may not be able to obtain waivers from the Bad Actor disqualification.