PUBLIC LAW 100-704—NOV. 19, 1988
102 STAT. 4679
"CD PAYMENT OF PENALTY TO TREASUBY.—A penalty imposed
under this section shall (subject to subsection (e)) be payable into the Treasury of the United States. "(2) COLLECTION OF PENALTIES.—If a person upon whom such a penalty is imposed shall fail to pay such penalty within the time prescribed in the court's order, the Commission may refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court. "(3) REMEDY NOT EXCLUSIVE.—The actions authorized by this section may be brought in addition to any other actions that the Commission or the Attorney General are entitled to bring. "(4) JURISDICTION AND VENUE.—For purposes of section 27 of this title, actions under this section shall be actions to enforce a liability or a duty created by this title. "(5) STATUTE OF LIMITATIONS.—No action may be brought under this section more than 5 years after the date of the purchase or ^ e. This section shall not be construed to bsur or limit in any manner any action by the Commission or the Attorney General under any other provision of this title, nor shall it bar or limit in any manner any action to recover penalties, or to seek any other order r^arding penalties, imposed in an action commenced within 5 years of such transaction. "(e) AUTHORITY To AWARD BOUNTIES TO INFORMANTS.—Notwith-
standing the provisions of subsection (d)(D. there shall be paid from amounts imposed as a penalty under this section and recovered by the Commission or the Attorney (General, such sums, not to exceed 10 percent of such amounts, as the Commission deems appropriate, to the person or persons who provide information leading to the imposition of such penalty. Any determinations under this subsection, including whether, to whom, or in what amount to make payments, shall be in the sole discretion of the Commission, except that no such payment shall be made to any member, officer, or employee of any appropriate regulatoiy agency, the Department of Justice, or a self-r^ulatory organization. Any such determination shall be final and not subject to judicial review. "(f) DEFINITION.—For purposes of this section, 'profit gained' or 'loss avoided' is the difference between the purchase or sale price of t^e security and the value of that security as measured by the trading price of the security a reasonable period after public dissemination of the nonpublic information.", (b) AMENDMENTS CONCERNING SUPERVISION.— (1) BROKERS AND DEALERS.—Section 15 of
the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended by adding at the end thereof the following new subsection: "(f) Every registered broker or dealer shall establish, maintain. Classified and enforce written policies and procedures reasonably designed, information. taking into consideration the nature of such broker's or dealer's business, to prevent the misuse in violation of this title, or the rules or regulations thereunder, of material, nonpublic information by such broker or dealer or any person associated with such broker or dealer. The Commission, as it deems necessary or appropriate in the public interest or for the protection of investors, shall adopt rules or regulations to require specific policies or procedures reasonably designed to prevent misuse in violation of this title (or the rules or regulations thereunder) of material, nonpublic information.".
19-194 O—91-Part 5
22: QL 3
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