Sec. 4. PROHIBITION OF INSIDER TRADING
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## SEC. 4 PROHIBITION OF INSIDER TRADING ###
(a)Affirmation of Nonexemption **[**[15 U.S.C. 78j note](/us/usc/t15/s78j)**]** Members of Congress and employees of Congress are not exempt from the insider trading prohibitions arising under the securities laws, including section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. ###
(b)Duty ####
(1)Purpose **[**[15 U.S.C. 78u-1 note](/us/usc/t15/s78u-1)**]** The purpose of the amendment made by this subsection is to affirm a duty arising from a relationship of trust and confidence owed by each Member of Congress and each employee of Congress. ####
(2)Amendment Section 21A of the Securities Exchange Act of 1934 (15 U.S.C. 78u-1) is amended by adding at the end the following: > > ### “(g) Duty of Members and Employees of Congress > > > #### “(1) In general > > Subject to the rule of construction under section 10 of the STOCK Act and solely for purposes of the insider trading prohibitions arising under this Act, including section 10(b) and Rule 10b-5 thereunder, each Member of Congress or employee of Congress owes a duty arising from a relationship of trust and confidence to the Congress, the United States Government, and the citizens of the United States with respect to material, nonpublic information derived from such person’s position as a Member of Congress or employee of Congress or gained from the performance of such person’s official responsibilities. > > > #### “(2) Definitions > > In this subsection— > > > ##### “(A) > > the term ‘Member of Congress’ means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico; and > > > ##### “(B) > > the term ‘employee of Congress’ means— > > > ###### “(i) > > any individual (other than a Member of Congress), whose compensation is disbursed by the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives; and > > > ###### “(ii) > > any other officer or employee of the legislative branch (as defined in section 109(11) of the Ethics in Government Act of 1978 (5 U.S.C. App. 109(11))). > > > #### “(3) Rule of construction > > Nothing in this subsection shall be construed to impair or limit the construction of the existing antifraud provisions of the securities laws or the authority of the Commission under those provisions.” > .
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