House Cte Extends SEC Emergency Order Law

October 11, 2001( - The House Financial Services Committee approved, on a voice vote, legislation extending the power of the Securities and Exchange Commission (SEC) in the face of emergencies.

The Emergency Securities Response Act, introduced this week by House Financial Services Committee Chairman Michael Oxley (R-Ohio) permits the issue emergency orders for up to 30 business days, and in some cases for up to 90 days.

SEC emergency orders are currently limited to 10 business days. Emergency powers, which were used for the first time when the SEC eased regulations governing corporate share repurchase programs, following the terrorist attacks in September.

It also eased the regulations ordering mutual fund boards to conduct in-person board meetings.

The bill also broadens emergency relief to include all federal securities laws, rather than one section of the laws.