# 114-hr-5852: To amend the Securities Investor Protection Act of 1970 to confirm that a customer's net equity claim is based on the customer's last statement and that certain recoveries are prohibited, to provide the Securities and Exchange Commission with oversight of the Securities Investor Protection Corporation, and for other purposes.

114-hr-5852, To amend the Securities Investor Protection Act of 1970 to confirm that a customer's net equity claim is based on the customer's last statement and that certain recoveries are prohibited, to provide the Securities and Exchange Commission with oversight of the Securities Investor Protection Corporation, and for other purposes., is a 114th Congress bill sponsored by Rep. Luetkemeyer, Blaine [R-MO-3] (R-MO); status Referred to the House Committee on Financial Services. (as of 2025-11-18).

- Canonical: https://policyrisk.com/legislation/114-hr-5852
- As of: 2025-11-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 114-hr-5852
- Congress: 114
- Title: To amend the Securities Investor Protection Act of 1970 to confirm that a customer's net equity claim is based on the customer's last statement and that certain recoveries are prohibited, to provide the Securities and Exchange Commission with oversight of the Securities Investor Protection Corporation, and for other purposes.
- Status: Referred to the House Committee on Financial Services.
- Introduced: 2016-07-14
- Sponsor: Rep. Luetkemeyer, Blaine [R-MO-3] (R-MO)
- Cosponsors: 3
- Policy area: Finance and Financial Sector
- Touches household money: no
- Last recorded action: 2025-11-18

## Summary

This bill amends the Securities Investor Protection Act of 1970 to revise provisions related to determining a customer's "net equity" (the dollar amount of the customer's accounts) for purposes of a claim. In general, such a determination shall be based on: (1) the information contained in the customer's final statement, and (2) certain additional written confirmations received after the final statement but prior to the filing date. However, the bill establishes exceptions to this requirement: (1) when the debtor's records indicate a higher net value, or (2) in specified cases involving the customer's awareness of fraudulent activity by the debtor. The bill also establishes specified methodologies for allocating a customer's property in a liquidation proceeding. Under current law, a "customer" of a debtor is a person that has a claim on account of certain securities received, acquired, or held by the debtor. The bill expands the definition of "customer" to include a person: (1) that had cash or securities that were converted or otherwise misappropriated by the debtor, irrespective of whether the debtor held or otherwise had custody, possession, or control of such cash or securities; or (2) that is deemed a customer of the debtor by the Securities and Exchange Commission (SEC). The SEC may direct the Securities Investor Protection Corporation (SIPC) to take necessary or appropriate action for the protection of investors. If the balance of the SIPC Fund decreases by more than a specified amount during a fiscal year, the SIPC must establish and carry out a fund replenishment plan. The SEC may transfer amounts from a specified fund established under the Sarbanes-Oxley Act of 2002 if the SEC determines that payments from the SIPC Fund are required because a debtor committed fraud.

## Cosponsors (3)

- Rep. Sessions, Pete [R-TX-17] (R-TX), 2016-07-14T00:00:00.000Z
- Rep. Maloney, Carolyn B. [D-NY-12] (D-NY), 2016-07-14T00:00:00.000Z
- Rep. Graves, Garret [R-LA-6] (R-LA), 2016-12-12T00:00:00.000Z

## Related bills

- 114-hr-2722: Breast Cancer Awareness Commemorative Coin Act
- 114-hr-1475: Korean War Veterans Memorial Wall of Remembrance Act
- 114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Doby in recognition of his achievements and contributions to American major league…
- 114-hr-4773: Protecting Workplace Advancement and Opportunity Act
- 114-hr-4768: Separation of Powers Restoration Act of 2016
- 114-hr-4514: Combating BDS Act of 2016

## Sources
- [114-hr-5852 on Congress.gov](https://www.congress.gov/bill/114th-congress/house-bill/5852)

## Related
- [114-hr-2722: Breast Cancer Awareness Commemorative Coin Act](https://policyrisk.com/legislation/114-hr-2722)
- [114-hr-1475: Korean War Veterans Memorial Wall of Remembrance Act](https://policyrisk.com/legislation/114-hr-1475)
- [114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Dob…](https://policyrisk.com/legislation/114-hr-5621)
- [114-hr-4773: Protecting Workplace Advancement and Opportunity Act](https://policyrisk.com/legislation/114-hr-4773)
- [114-hr-4768: Separation of Powers Restoration Act of 2016](https://policyrisk.com/legislation/114-hr-4768)
- [114-hr-4514: Combating BDS Act of 2016](https://policyrisk.com/legislation/114-hr-4514)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/114-hr-5852 (as of 2025-11-18).