Section 928F – Formerly Associated Persons

 

SEC. 929F. FORMERLY ASSOCIATED PERSONS.

(a) Member or Employee of the Municipal Securities Rulemaking Board.--Section 15B(c)(8) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-4(c)(8)) is amended by striking "any member or employee'' and inserting "any person who is, or at the time of the alleged violation or abuse was, a member or employee''.
(b) Person Associated With a Government Securities Broker or Dealer.--Section 15C(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-5(c)) is amended--

(1) in paragraph (1)(C), by striking "any person associated, or seeking to become associated,'' and inserting "any person who is, or at the time of the alleged misconduct was, associated or seeking to become associated''; and
(2) in paragraph (2)--

(A) in subparagraph (A), by inserting ", seeking to become associated, or, at the time of the alleged misconduct, associated or seeking to become associated'' after ``any person associated''; and
(B) in subparagraph (B), by inserting ", seeking to become associated, or, at the time of the alleged misconduct, associated or seeking to become associated'' after ``any person associated''.
(c) Person Associated With a Member of a National Securities Exchange or Registered Securities Association.--Section 21(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(a)(1)) is amended, in the
first sentence, by inserting ", or, as to any act or practice, or omission to act, while associated with a member, formerly associated'' after "member or a person associated''.
(d) Participant of a Registered Clearing Agency.--Section 21(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(a)(1)) is amended, in the first sentence, by inserting "or, as to any act or practice, or
omission to act, while a participant, was a participant,'' after "in which such person is a participant,''.
(e) Officer or Director of a Self-regulatory Organization.--Section 19(h)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(h)(4)) is amended--

(1) by striking "any officer or director'' and inserting "any person who is, or at the time of the alleged misconduct was, an officer or director''; and
(2) by striking "such officer or director'' and inserting "such person''.

(f) Officer or Director of an Investment Company.--Section 36(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-35(a)) is amended--

(1) by striking "a person serving or acting'' and inserting "a person who is, or at the time of the alleged misconduct was, serving or acting''; and
(2) by striking "such person so serves or acts'' and inserting "such person so serves or acts, or at the time of the alleged misconduct, so served or acted''.

(g) Person Associated With a Public Accounting Firm.--

(1) Sarbanes-oxley act of 2002 amendment.--Section 2(a)(9) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(9)) is amended by adding at the end the following: "(C) <<NOTE: Applicability.>> Investigative and enforcement authority.--For purposes of sections 3(c), 101(c), 105, and 107(c) and the rules of the Board and Commission issued thereunder, except to the extent specifically excepted by such rules, the terms defined in subparagraph (A) shall include any person associated, seeking to become associated, or formerly associated with a public accounting firm, except that--

"(i) the authority to conduct an investigation of such person under section 105(b) shall apply only with respect to any act or practice, or omission to act, by the person while such person was associated or seeking to become associated with a registered public accounting firm; and
"(ii) the authority to commence a disciplinary proceeding under section 105(c)(1), or impose sanctions under section 105(c)(4), against such person shall apply only with respect to--

"(I) conduct occurring while such person was associated or seeking to become associated with a registered public accounting firm; or "(II) non-cooperation, as described in section 105(b)(3), with respect to a demand in a Board investigation for testimony, documents, or other information relating to a period when such person was associated or seeking to become associated with a registered public accounting firm.''.
(2) Securities exchange act of 1934 amendment.--Section 21(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(a)(1)) is amended by striking ``or a person associated with
such a firm'' and inserting ``, a person associated with such a firm, or, as to any act, practice, or omission to act, while associated with such firm, a person formerly associated with
such a firm''.

(h) Supervisory Personnel of an Audit Firm.--Section 105(c)(6) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(c)(6)) is amended--

(1) in subparagraph (A), by striking ``the supervisory personnel'' and inserting ``any person who is, or at the time of the alleged failure reasonably to supervise was, a supervisory person''; and
(2) in subparagraph (B)--

(A) by striking ``No associated person'' and inserting ``No current or former supervisory person''; and
(B) by striking ``any other person'' and inserting ``any associated person''.

(i) Member of the Public Company Accounting Oversight Board.-- Section 107(d)(3) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7217(d)(3)) is amended by striking ``any member'' and inserting "any person who is, or at the time of the alleged misconduct was, a member''.