Defining Dealer Act
Sponsored By: Representative Donalds, Byron [R-FL-19]
Introduced
Summary
Redefines who counts as a 'dealer' under the Securities Exchange Act and sets a short transition process to clear certain past and pending orders and judgments.
Show full summary
- Market participants would be a "dealer" only if they both buy securities from customers into their own account to resell elsewhere and sell to customers securities they bought for their own account elsewhere. The definition excludes security-based swaps except those with or for persons who are not eligible contract participants.
- Orders or judgments entered between enactment and the rule's effective date that would not meet the new definition must be vacated by the court or the Securities and Exchange Commission no later than 5 years after enactment. A "covered action" is an order or judgment, including a consent order.
- The new definition would take effect 30 days after enactment. Judgments entered before enactment that would not have been entered under the amendment must be vacated as soon as practicable.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New dealer rules for securities firms
This bill would change who counts as a securities "dealer" under the Securities Exchange Act of 1934. It would define a dealer as a person who both (1) buys securities from customers into their own account to resell elsewhere and (2) sells to customers securities they previously bought for their own account. The change would exclude most security-based swaps, except those with or for persons that are not eligible contract participants. The new definition would take effect 30 days after enactment. The bill would also require courts and the SEC to vacate certain orders or judgments (including consent orders) that would not have been entered under the new dealer definition. For covered actions entered between enactment and the new rule's effective date, vacatur must occur not later than 5 years after enactment. For covered actions entered before enactment, vacatur must occur as soon as practicable.
Sponsors & CoSponsors
Sponsor
Donalds, Byron [R-FL-19]
FL • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov