[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1097 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1097

  To amend the Securities Exchange Act of 1934 to prohibit trading on 
                      material inside information.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 2015

  Mr. Lynch introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Securities Exchange Act of 1934 to prohibit trading on 
                      material inside information.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ban Insider Trading Act of 2015''.

SEC. 2. PROHIBITING TRADING ON MATERIAL INSIDE INFORMATION.

    (a) In General.--Section 10 of the Securities Exchange Act of 1934 
(15 U.S.C. 78j) is amended by inserting after subsection (c) the 
following:
    ``(d) Trading on Material Inside Information.--
            ``(1) In general.--To purchase or sell any security, or any 
        securities-based swap agreement, based on information that the 
        person knows or, considering factors including financial 
        sophistication, net worth, knowledge of and experience in 
        financial matters, position in a company, and amount of assets 
        under management, should know is material information and 
        inside information.
            ``(2) Rules of construction.--Nothing in this subsection 
        may be construed--
                    ``(A) to affect liability under subsection (b); or
                    ``(B) to require for an action under paragraph (1) 
                a personal benefit to any party.
            ``(3) Definitions.--In this subsection:
                    ``(A) Inside information.--The term `inside 
                information' means information that is--
                            ``(i) nonpublic; and
                            ``(ii) obtained--
                                    ``(I) illegally;
                                    ``(II) directly or indirectly from 
                                an issuer with an expectation of 
                                confidentiality or that such 
                                information will only be used for a 
                                legitimate business purposes; or
                                    ``(III) in violation of a fiduciary 
                                duty.
                    ``(B) Material information.--The term `material 
                information' means information that relates, directly 
                or indirectly, to an issuer or a security, and that, if 
                it were made public, would be likely to have a 
                significant effect on the price of a security.''.
    (b) Liability for Disclosing Material Inside Information.--Section 
20(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78t(e)) is 
amended--
            (1) by striking ``(e)'' and all that follows through 
        ``For'' and inserting the following:
    ``(e) Prosecution of Persons Who Aid and Abet Violations.--
            ``(1) In general.--For''; and
            (2) by adding at the end the following:
            ``(2) Prosecution of persons who facilitate violations of 
        section 10(d).--A person shall be deemed to have violated 
        section 10(d) if the person intentionally discloses without a 
        legitimate business purpose to another person information that 
        the discloser knows or, considering factors including financial 
        sophistication, net worth, knowledge of and experience in 
        financial matters, position in a company, and amount of assets 
        under management, should know is material information and 
        inside information, as such terms are defined, respectively, in 
        section 10(d)(3).''.
    (c) Technical Amendment.--Section 10 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78j) is amended in the matter preceding subsection 
(a) by striking ``exchange--'' and inserting ``exchange:''.
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