Official Summary

10/15/2009--Introduced.Investor Protection Act of 2009 - Amends the Securities Exchange Act of 1934 to establish the Investor Advisory Committee to advise and consult with the Securities and Exchange Commission (SEC) on: (1) regulatory priorities and issues regarding new products, trading

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Official Summary

10/15/2009--Introduced.Investor Protection Act of 2009 - Amends the Securities Exchange Act of 1934 to establish the Investor Advisory Committee to advise and consult with the Securities and Exchange Commission (SEC) on:
(1) regulatory priorities and issues regarding new products, trading strategies, fee structures, and the effectiveness of disclosures;
(2) initiatives to protect investor interest; and
(3) initiatives to promote investor confidence in the integrity of the marketplace. Amends the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940 and Investment Company Act of 1940 to authorize the SEC to engage in temporary or experimental programs in the public interest or for protection of investors. Amends the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940 to:
(1) direct the SEC to establish a standard of conduct for brokers, dealers, and investment advisers;
(2) authorize the SEC to restrict mandatory pre-dispute arbitration affecting customers or clients; and
(3) modify SEC authority to limit disclosure of information. Amends the Investment Company Act of 1940 to:
(1) authorize the SEC to require investor disclosures before purchase of investment company shares;
(2) revise recordkeeping rules;
(3) instruct the SEC to impose fees to recover its cost of inspections and examinations of registered investment advisers;
(4) redefine "interested person"; and
(5) authorize the SEC to limit the extent to which a registered open-end investment company may execute transactions in illiquid property. Amends the Securities Exchange Act of 1934 to:
(1) authorize the SEC to impose a shorter disclosure reporting period upon certain beneficial owners of securities;
(2) set forth monetary incentives for whistleblowers;
(3) authorize additional appropriations for FY2010-FY2015;
(4) declare unlawful a securities lending transaction that is in contravention of SEC rules and regulations;
(5) set forth additional requirements regarding lost and stolen securities and fingerprinting; and
(6) modify the rules for composition of the Municipal Securities Rulemaking Board. Amends the Securities Act of 1933 and the Investment Company Act of 1940 to subject to prosecution and penalties persons who aid and abet violations of such Acts. Sets forth additional enforcement provisions for violations of securities laws. Directs the SEC to hire an independent consultant to study and report to Congress on the need for comprehensive reform of the SEC, self-regulatory organizations, and other entities relevant to securities regulation and investor protection. Directs the SEC, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board to provide oral testimony annually to the Committee on Financial Services of the House of Representatives on efforts to reduce the complexity in financial reporting and provide more accurate and clear financial information to investors. Amends the Securities Investor Protection Act of 1970 (SIPA) to increase:
(1) the minimum assessment paid by Securities Investor Protection Corporation (SIPC) members;
(2) the borrowing limit on U.S. Treasury loans;
(3) the standard maximum cash advance for each customer (including an inflation adjustment); and
(4) penalties for violations. Amends SIPA with respect to:
(1) SIPC trusteeship in liquidation proceedings;
(2) insider ineligibility for SIPC advances;
(3) misrepresentation of SIPC membership or protection;
(4) limitations on customer status;
(5) futures held in a portfolio margin securities account; and
(6) a risk-based assessment system for premiums. Amends the Sarbanes-Oxley Act of 2002 with respect to:
(1) including brokers and dealers within its purview;
(2) establishment and administration of the Public Company Accounting Oversight Board;
(3) auditing and independence standards;
(4) inspections of registered public accounting firms; and
(5) information sharing with a foreign auditor oversight authority. Amends federal criminal law to extend whistleblower protection against retaliation by a subsidiary of an issuer.

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