Congresswoman Waters Introduces Bad Actor Disqualification Act

On July 27, 2017, Ranking Member of the House Committee on Financial Services, Congresswoman Maxine Waters, introduced the Bad Actor Disqualification Act of 2017. This draft legislation directs the SEC to implement more rigorous and public processes for granting waivers that restore certain benefits to bad actors. These benefits include reduced oversight, reduced disclosure requirements and limited liability. The current draft of the bill specifically requires:

• that the waiver process be conducted and voted on at the Commission level, rather than staff level;
• that the SEC consider whether granting a waiver would protect investors, be in the public's interest and promote market integrity;