Page:United States Statutes at Large Volume 109 Part 1.djvu/772

 109 STAT. 756 PUBLIC LAW 104-67—DEC. 22, 1995 "(D) any statement of the assumptions underlying or relating to any statement described in subparagraph (A), (B),or(C); "(E) any report issued by an outside reviewer retained by an issuer, to the extent that the report assesses a forward-looking statement made by the issuer; or "(F) a statement containing a projection or estimate of such other items as may be specified by rule or regulation of the Commission. "(2) INVESTMENT COMPANY.— The term 'investment company* has the same meaning as in section 3(a) of the Investment Company Act of 1940. "(3) GOING PRIVATE TRANSACTION. —The term 'going private transaction' has the meaning given that term under the rules or regulations of the Commission issued pursuant to section 13(e). "(4) PERSON ACTING ON BEHALF OF AN ISSUER. —The term 'person acting on behalf of an issuer' means any officer, director, or employee of such issuer. "(5) OTHER TERMS.— The terms 'blank check company', 'rollup transaction', 'partnership', 'limited liability company', 'executive officer of an entity' and 'direct participation investment program', have the meanings given those terms by rule or regulation of the Commission.". SEC. 103. ELIMINATION OF CERTAIN ABUSIVE PRACTICES. (a) PROHIBITION OF REFERRAL FEES.— Section 15(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(c)) is amended by adding at the end the following new paragraph: "(8) PROHIBITION OF REFERRAL FEES.— No broker or dealer, or person associated with a broker or dealer, may solicit or accept, directly or indirectly, remuneration for assisting an attorney in obtaining the representation of any person in any private action arising under this title or under the Securities Act of 1933.". (b) PROHIBITION OF ATTORNEYS' FEES PAID FROM COMMISSION DISGORGEMENT FUNDS.— (1) SECURITIES ACT OF 1933. —Section 20 of the Securities Act of 1933 (15 U.S.C. 77t) is amended by adding at the end the following new subsection: " (f) PROHIBITION OF ATTORNEYS' FEES PAID FROM COMMISSION DISGORGEMENT FUNDS.— Except as otherwise ordered by the court upon motion by the Commission, or, in the case of an administrative action, as otherwise ordered by the Commission, funds disgorged as the result of an action brought by the Commission in Federal court, or as a result of any Commission administrative action, shall not be distributed as payment for attorneys' fees or expenses incurred by private parties seeking distribution of the disgorged funds.". (2) SECURITIES EXCHANGE ACT OF 1934. —Section 21(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)) is amended by adding at the end the following new paragraph: " (4) PROHIBITION OF ATTORNEYS' FEES PAID FROM COMMIS- SION DISGORGEMENT FUNDS.—Except as otherwise ordered by the court upon motion by the Commission, or, in the case of an administrative action, as otherwise ordered by the Commission, funds disgorged as the result of an action brought

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