Representative Gary Ackerman introduces H.R. 1987 – While we have not yet seen the actual bill, it is our understanding that this is a reintroduction of the bill Congressman Ackerman introduced last year, in that it would stop the clawback for direct investors and gives SIPC coverage to some indirect investors. Some changes include a new definition of net equity that includes the time value of money; new negligence language focused solely on negligent registered professional investment advisers; and trustee oversight that includes review of trustee compensation by the bankruptcy judge and annual auditing of the trustee under certain circumstances. Stay tuned here for more to come.
