Sarbanes-Oxley Act
Section 3
Commission Rules and Enforcement
a. Regulatory Action. The Commission shall promulgate such rules and
regulations, as may be necessary or appropriate in the public interest or
for the protection of investors, and in furtherance of this Act.
b. Enforcement.
1. In general. A violation by any person of this Act, any
rule or regulation of the Commission issued under this Act, or any rule
of the Board shall be treated for all purposes in the same manner as a violation
of the Securities Exchange Act of 1934 or the rules and regulations issued
thereunder, consistent with the provisions of this Act, and any such person
shall be subject to the same penalties, and to the same extent, as for a
violation of that Act or such rules or regulations.
2. Investigations, injunctions, and prosecution of offenses.
Section 21 of the Securities
Exchange Act of 1934 is amended --
A. in subsection (a)(1), by inserting "the rules
of the Public Company Accounting Oversight Board, of which such person is
a registered public accounting firm or a person associated with such a firm,"
after "is a participant,";
B. in subsection (d)(1), by inserting "the rules
of the Public Company Accounting Oversight Board, of which such person is
a registered public accounting firm or a person associated with such a firm,"
after "is a participant,";
C. in subsection (e), by inserting "the rules of
the Public Company Accounting Oversight Board, of which such person is a
registered public accounting firm or a person associated with such a firm,"
after "is a participant,"; and
D. in subsection (f), by inserting "or the Public
Company Accounting Oversight Board" after "self-regulatory organization"
each place that term appears.
3. Cease-and-desist proceedings.
Section 21C(c)(2) of the
Securities Exchange Act of 1934 is amended by inserting "registered public
accounting firm (as defined in
section 2 of
the Sarbanes-Oxley Act of 2002)," after "government securities dealer,".
4. Enforcement by federal banking agencies.
Section 12(i) of the Securities
Exchange Act of 1934 is amended by --
A. striking "sections 12," each place it appears
and inserting "sections 10A(m), 12,"; and
B. striking "and 16," each place it appears and inserting
"and 16 of this Act, and sections 302, 303, 304, 306, 401(b), 404, 406,
and 407 of the Sarbanes-Oxley Act of 2002,"
c. Effect on Commission Authority. Nothing in this Act or the rules of the
Board shall be construed to impair or limit --
1. the authority of the Commission to regulate
the accounting profession, accounting firms, or persons associated with
such firms for purposes of enforcement of the securities laws;
2. the authority of the Commission to set standards
for accounting or auditing practices or auditor independence, derived from
other provisions of the securities laws or the rules or regulations thereunder,
for purposes of the preparation and issuance of any audit report, or otherwise
under applicable law; or
3. the ability of the Commission to take, on the initiative
of the Commission, legal, administrative, or disciplinary action against
any registered public accounting firm or any associated person thereof.
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