I 111th CONGRESS 2d Session H. R. 5042 IN THE HOUSE OF REPRESENTATIVES April 15, 2010 Ms. Waters (for herself and Mr. Frank of Massachusetts) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend section 20 of the Securities Exchange Act of 1934 to allow for a private civil action against a person that provides substantial assistance in violation of such Act.

1.

Short title

This Act may be cited as the Liability for Aiding and Abetting Securities Violations Act of 2010.

2.

Private civil actions for aiding and abetting

Section 20(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78t(e)) is amended— (1)in the subsection heading, by striking Prosecution of and inserting Actions against; (2)by striking For purposes and inserting the following: (1)

Actions brought by Commission

For purposes ; (3)in paragraph (1), as so designated, by inserting or recklessly after knowingly; and (4)by adding at the end the following: (2)

Private civil actions

For purposes of any private civil action implied under this title, any person that knowingly or recklessly provides substantial assistance to another person in violation of this title, or of any rule or regulation issued under this title, shall be deemed to be in violation of this title to the same extent as the person to whom such assistance is provided. .