Sec. 108. Prohibited acts
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/bill/118/hr/7476/ih/section-108·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section: The term acting in a professional capacity includes acting as— a member (as defined in section 3(a)(3)(A) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(3)(A) )) of a national securities exchange; a member (as defined in section 3(a)(3)(B) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(3)(B) )) of a registered securities association; or an associated person of a member (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )) described in subparagraph
(A)or (B). The term assignment has the meaning given the term in section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a– 2(a)). The term commerce has the meaning given the term in section 4 of the Federal Trade Commission Act ( 15 U.S.C. 44 ). The term covered exchange means— the Shanghai Stock Exchange (or any subsidiary of that exchange); the Shenzhen Stock Exchange (or any subsidiary of that exchange); the Beijing Stock Exchange (or any subsidiary of that exchange); or any other national exchange, or subsidiary of such an exchange, that is subject to the influence or control of the Party Committee of the China Securities Regulatory Commission, other than the Stock Exchange of Hong Kong. The term covered security means a security that— as of the date on which a covered transaction is executed with respect to the security, is listed on a covered exchange; is derivative of a security described in subparagraph (A); or is designed to provide investment exposure to a security described in subparagraph (A). The term covered transaction means a purchase, sale, or assignment. The term engage in , with respect to a transaction, means to order, approve, or otherwise perform any act in furtherance of that transaction. The terms purchase , sale , and security have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). The term U.S. person has the meaning given the term in section 120.62 of title 22, Code of Federal Regulations, or any successor regulation. The term willfully , with respect to an action, means that the action is taken voluntarily and intentionally in violation of a known legal duty. Except for the purposes of complying with paragraph (2), beginning on the date of enactment of this Act, it shall be unlawful for any U.S. person to make use of the mails or any means or instrumentality of commerce to engage in a covered transaction with respect to a covered security. Not later than 180 days after the date of enactment of this Act, each U.S. person shall divest of all covered securities held by the U.S. person. A U.S. person that violates, attempts to violate, conspires to violate, or causes a violation of this section shall be subject to any of the following penalties: A civil penalty in an amount not to exceed the greater of— $350,000; or an amount that is twice the amount of the covered transaction that is the basis of the violation with respect to which the penalty is imposed. With respect to a U.S. person that willfully violates, willfully attempts to violate, willfully conspires to violate, or willfully aids or abets in the commission of a violation of this section, a criminal penalty as follows: If that U.S. person is an individual not acting in a professional capacity, a fine of not more than $1,000,000, a term of imprisonment of not more than 5 years, or both. If that U.S. person is an individual acting in a professional capacity, a fine of not more than $5,000,000, a term of imprisonment of not more than 20 years, or both. If that U.S. person is an organization, including any entity described in clause (ii), a fine of not more than $25,000,000. An entity described in this clause is any of the following: An investment company, as defined in section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 ). A bank, broker, dealer, exchange, insurance company, investment banker, underwriter, savings and loan association, business development company, commodity pool, commodity pool operator, commodity trading advisor, major swap participant, swap dealer, or swap execution facility, as those terms are defined in section 2(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(a) ). An investment adviser, as defined in section 202(a) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2(a) ). A market intermediary, as defined in section 3(c)(2)(B)(i) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c)(2)(B)(i) ). A fund described in section 3(c)(10)(B) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c)(10)(B) ). A qualified pension, profit-sharing, or stock bonus plan described in section 401 of the Internal Revenue Code of 1986. An individual retirement account, as defined in section 408(a) of the Internal Revenue Code of 1986. A tax credit employee stock ownership plan, as defined in section 409(a) of the Internal Revenue Code of 1986.
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- 15 USC 80a
- 15 USC 80a–3
- 15 USC 80a–2(a)
- 15 USC 80b–2(a)
- 15 USC 80a–3(c)(2)(B)(i)
- 15 USC 80a–3(c)(10)(B)
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Sec. 108
Prohibited acts
Cite15 USC 80a
Cite15 USC 80a–3
Cite15 USC 80a–2(a)
Cite15 USC 80b–2(a)
Cite15 USC 80a–3(c)(2)(B)(i)
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