[Federal Register Volume 61, Number 61 (Thursday, March 28, 1996)]
[Notices]
[Pages 13906-13907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7538]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37009; File No. S7-8-96]
Study and Report on Protections for Senior Citizens and Qualified
Retirement Plans
AGENCY: Securities and Exchange Commission.
ACTION: Request for comments.
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SUMMARY: The Private Securities Litigation Reform Act of 1995 directs
the Securities and Exchange Commission (the ``Commission'') to
determine whether investors that are senior citizens or qualified
retirement plans require greater protection against securities fraud
than is currently provided under the federal securities laws; and
whether investors that are senior citizens or qualified retirement
plans have been adversely impacted by abusive or unnecessary securities
fraud litigation, and whether the current provisions of the federal
securities laws are sufficient to protect them from such litigation.
The Commission is soliciting comment on these questions and on the more
general question of the role of senior citizens and qualified
retirement plans in our securities markets.
DATES: Comments must be received no later than April 30, 1996.
ADDRESSES: Persons wishing to respond should file three copies of their
written comments with Jonathan G. Katz, Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Comments may also be submitted electronically at the following E-mail
address: rule-commentssec.gov. All written comments should refer to
File No. S7-8-96; this file number should be included on the subject
line if E-mail is used. The comments will be available for public
inspection and copying in the Commission's Public Reference Room, 450
Fifth Street, N.W., Washington, D.C. 20549. Electronically submitted
comments will be posted on the Commission's Internet web site (http://
www.sec.gov).
FOR FURTHER INFORMATION CONTACT: John W. Avery, Office of the General
Counsel, at (202) 942-0816; or Ann M. Gerg, Office of the General
Counsel, at (202) 942-0857.
SUPPLEMENTARY INFORMATION:
I. Introduction
On December 22, 1995, Congress overrode the President's veto and
enacted the Private Securities Litigation Reform Act of 1995 (the
``Act''). Section 106 of the Act requires the Commission to:
(1) Determine whether investors that are senior citizens or
qualified retirement plans require greater protection against
securities fraud than is provided in the Act and the amendments made by
the Act; and
(2) Determine whether investors that are senior citizens or
qualified retirement plans have been adversely impacted by abusive or
unnecessary securities fraud litigation, and whether the provisions in
the Act or amendments made by the Act are sufficient to protect their
investments from such litigation.
If the Commission determines that greater protections are
necessary, it must submit a report to the Congress by June 19, 1996.
For purposes of section 106 of the Act, the term ``senior citizen''
means an individual who is 62 years of age or older, and the term
``qualified retirement plan'' has the same meaning as in section
4974(c) of the Internal Revenue Code of 1986.
II. Background
Senior citizens and qualified retirement plans are substantial
participants in our financial markets and play a vital role in capital
formation. As the population ages, the importance of seniors and
qualified retirement plans to our markets will increase. Many employers
are moving away from traditional pension plans in which the plan
participants have little, if any, investment discretion, to defined
contribution plans in which the participants have significant
investment discretion. Thus, seniors and qualified retirements plans
may be more vulnerable to securities fraud and to the effects of
abusive securities fraud litigation.
The Commission believes that it would be valuable to examine
generally
[[Page 13907]]
the role of senior citizens and qualified retirement plans as investors
and their importance to our markets and to capital formation, and to
consider whether the federal securities laws provide adequate
protections to senior citizens and qualified retirement plans against
securities fraud and abusive securities litigation. The Commission also
believes that it would be appropriate to consider the special needs of
senior citizens and qualified retirement plans and whether changes to
the federal securities laws or to the commission's rules or regulations
are necessary or desirable to address those needs.
III. Solicitation of Public Comment
The Commission seeks comment on the issues and questions described
above and, more particularly, on the following questions with respect
to investors that are senior citizens or qualified retirement plans:
1. What is the rule and importance of senior citizens and qualified
retirement plans as investors in our financial markets, and how is that
role and importance changing?
2. What are their special needs as investors, and what changes to
the federal securities laws or to the Commission's rules or regulations
may be necessary or desirable to address those needs?
3. Do they require greater protection against securities fraud than
is provided in the Act and the amendments made by the Act, or than is
provided under the federal securities laws?
4. Have they been adversely impacted by abusive or unnecessary
securities fraud litigation? Are the provisions in the Act or
amendments made by the Act sufficient to protect their investments from
such litigation, or, more generally, are the provisions of the federal
securities laws sufficient to protect their investments from such
litigation?
5. What changes to the federal securities laws or to the
Commission's rules or regulations may be necessary or desirable to
thoroughly protect senior citizens and qualified retirement plans
against securities fraud and abusive or unnecessary securities fraud
litigation?
Commenters are requested to direct their comments to the special
needs and circumstances of senior citizens and qualified retirement
plans. Comments should not simply voice support for, or criticism of,
the Act generally.
By the Commission.
Dated: March 21, 1996.
Jonathan G. Katz,
Secretary.
[FR Doc. 96-7538 Filed 3-27-96; 8:45 am]
BILLING CODE 8010-01-M
