Washington, D.C., September 23, 2019 – SIFMA today released the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, expressing opposition to a legislative proposal that would overturn the 2017 Kokesh v. SEC Supreme Court decision related to disgorgement.

“SIFMA strongly opposes increasing the statute of limitations period on disgorgement from five years to 14 years, particularly given the SEC has historically used disgorgement to punish respondents, rather than recover monies for investors, as the Supreme Court found in an unanimous opinion written by Justice Sotomayor in the 2017 Kokesh case. The Court appropriately curtailed the SEC’s use of disgorgement to a 5-year limitations period in recognition of its historical overreach in wielding it against respondents and Congress should not upend the reasoned and sound judgment of the Court. The proposed bill is unnecessary for the SEC to accomplish its securities enforcement goals. It fails to better remediate harmed investors, runs contrary to the interests of fair and equitable justice and promotes harmful uncertainty throughout the market.”

SIFMA sent a letter further expanding upon the views which can be found here.

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.