Securities Investor Protection Act Amendments of 1978
Public Law 95-283 · H.R. 8331 · 95th Congress · began in the House
Signed by Jimmy Carter (D) on May 21, 1978 · Finance and Financial Sector
Sponsor: Rep. Robert Eckhardt (D-TX-8)
Cosponsors: None
Passage votes
- HouseMethod not stated
- SenateMethod not stated
Data notes
The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.
Summary
The Congressional Research Service’s plain-language summary of what the law does.
(House receded from its disagreement to certain Senate amendment with an amendment)
Securities Investor Protection Act Amendments - Amends the Securities Investor Protection Act to exclude from membership in the Securities Investor Protection Corporation (SIPC): (1) those persons whose principal business, in SIPC's determination, is conducted outside the United States and its territories and possessions; and (2) those persons whose business as a broker or dealer consists exclusively of (a) the distribution of shares of registered open end investment companies or unit investment trusts, (b) the sale of variable annuities, (c) the business of insurance, or (d) the business of rendering investment advisory services to one or more registered investment companies or insurance separate accounts.
Grants additional power to adopt, amend, or repeal rules and bylaws of the SIPC to its Board of Directors.
Revises the procedure for the promulgation of rules by the Securities Exchange Commission as filed by the Corporation.
Authorizes the SIPC to maintain confirmed lines of credit outside of the balance of its Fund, but allows disbursement of amounts received from such lines of credit as though they were a part of the Fund.
Makes changes in the borrowing authority of the SIPC and in the definition of "gross revenues.
Authorizes self-regulatory organizations to take such actions in liquidation proceedings instituted by brokers or dealers in securities as they deem appropriate to protect the interests of customers of such broker or dealer.
Authorizes a court of competent jurisdiction to issue a protective decree if it finds the debtor to be bankrupt within the meaning of the Bankruptcy Act or not able to comply with financial responsibility rules or regulations.
Makes provisions for the appointment and compensation of disinterested third parties as attorneys and trustees for the parties to such actions. Defines the term "disinterested" for the purposes of this Act.
Revises the provisions relating to the purposes of liquidation proceedings, and enumerates the powers and duties of the trustee in such proceedings. Makes special provision with respect to customer-related property and the purchase of securities by the trustee.
States that, in order to provide for prompt payment and satisfaction of net equities of customers of the debtor, SIPC shall advance to the trustee such monies as may be required to pay or otherwise satisfy claims for the amount by which the net equity of each customer exceeds his ratable share of customer property but only to the extent that the amount of such excess shall not exceed $100,000 for such customer, except in specified circumstances.
Provides for a direct payment procedure in lieu of a liquidation proceeding where the SIPC determines that any member has failed or may fail to meet its obligations to its customers and that the aggregate of such obligations to its customers is less than $250,000.
Designates each self- regulatory organization (national securities exchange or registered securities organization) as collection agent for SIPC.
Makes it unlawful for any person to defraud or attempt to defraud the SIPC.
Amends the Securities Exchange Act to define "financial responsibility rules" to mean the rules and regulations of the Securities and Exchange Commission or the rules and regulations prescribed by any self-regulatory organization relating to financial responsibility and related practices which are designated by the Commission, by rule or regulation, to be financial responsibility rules.
Amends the Securities Act of 1933 to increase from $500,000 to $1,500,000 the maximum aggregate dollar amount of securities which may be offered to the public by the Securities and Exchange Commission without full compliance with the registration requirements of the Act.
Amends the Securities Exchange Act of 1934 to extend to November 1, 1978, the provisions of such Act which allow members of the exchange to effect transactions on the exchange for their own accounts, the accounts of associated persons, and accounts over which they or their associates exercise investment discretion.
Committees
The committees the bill was sent to, and what each did with it.
Data notes
A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.
Timeline
From introduction to signing, newest first: the committees, the floor and the president. 22 actions.
- May 21, 1978Became lawBecame law · Signed by President.
- PresidentPresident · Public Law 95-283.
- May 15, 1978PresidentPresident · Measure presented to President.
- PresidentPresident · Measure enrolled in Senate.
- May 12, 1978PresidentPresident · Measure enrolled in House.
- May 10, 1978Resolving differencesResolving differences · Senate agreed to House amendment to certain Senate amendment.
- May 9, 1978Resolving differencesResolving differences · House receded from its disagreement to certain Senate amendment with an amendment.
- Resolving differencesResolving differences · House agreed to Senate amendment to House amendment to certain Senate amendment.
- May 4, 1978Resolving differencesResolving differences · Senate insisted on certain of its amendment.
- Resolving differencesResolving differences · Senate agreed to House amendmendment to certain Senate amendment with an amendment.
- May 2, 1978Resolving differencesResolving differences · Conference scheduled in House (Pursuant to H.Res. 1158).
- Resolving differencesResolving differences · House disagreed to certain Senate amendment.
- Resolving differencesResolving differences · House insisted on certain amendment.
- Resolving differencesResolving differences · House agreed to Senate amendments with an amendment (See H.Res. 1158).
- Apr 26, 1978FloorFloor · Measure passed Senate, amended.
- Apr 25, 1978CommitteeCommittee · Reported by Senate Banking, Housing, and Urban Affairs Committee
- Nov 3, 1977CommitteeCommittee · Referred to Senate Banking, Housing, and Urban Affairs Committee
- Nov 1, 1977FloorFloor · Measure passed House, amended.
- FloorFloor · Measure called up under motion to suspend rules and pass in House.
- Oct 26, 1977CommitteeCommittee · Reported by House Energy and Commerce Committee
- Jul 14, 1977CommitteeCommittee · Referred to House Energy and Commerce Committee
- IntroducedIntroduced · Introduced in the House
Data notes
Shows the introduction, each committee and subcommittee step the source dates (referral, hearings, markup, report, discharge), and the floor, conference, presidential and became-law steps. Calendar placements, messages between the chambers, amendments and committee report numbers are not shown for laws before the 108th Congress. Two entries the source lists twice are shown once.
Official record
The bill’s full text and every action, including introduction and committee steps, are on Congress.gov. Data through Oct 7, 2026.