According to the Insights Commentary, the U.S. Congress recently passed the National Defense Authorization Act (“NDAA”) for Fiscal Year 2021, which includes important changes to the Securities and Exchange Commission’s (“SEC”) ability to seek disgorgement. Although President Trump vetoed the bill, the House of Representatives and Senate voted to override the veto on December 28, 2020, and January 1, 2021, respectively.
- What was the context leading to the new provisions of disgorgement?
- For disgorgement, what is the statute of limitations for fraud-based violations according to the new legislation?
- What challenges does the additional time allowed by the statute of limitations pose for the SEC?
- What are the three takeaways from the new provisions?
Staff. (2021) Defense Bill to Expand SEC Powers and Authority. Jones Day Publications, Jan. 4 (Retrievable online at https://www.jonesday.com/en/insights/2020/12/defense-bill-to-expand-sec-powers-and-authority)