124 STAT. 1865 PUBLIC LAW 111–203—JULY 21, 2010 (2) UNDER THE SECURITIES EXCHANGE ACT OF 1934.—Section 27 of the Securities Exchange Act of 1934 (15 U.S.C. 78aa) is amended— (A) by striking ‘‘The district’’ and inserting the fol- lowing: ‘‘(a) IN GENERAL.—The district’’; and (B) by adding at the end the following new subsection: ‘‘(b) EXTRATERRITORIAL JURISDICTION.—The district courts of the United States and the United States courts of any Territory shall have jurisdiction of an action or proceeding brought or instituted by the Commission or the United States alleging a viola- tion of the antifraud provisions of this title involving— ‘‘(1) conduct within the United States that constitutes significant steps in furtherance of the violation, even if the securities transaction occurs outside the United States and involves only foreign investors; or ‘‘(2) conduct occurring outside the United States that has a foreseeable substantial effect within the United States.’’. (3) UNDER THE INVESTMENT ADVISERS ACT OF 1940.—Section 214 of the Investment Advisers Act of 1940 (15 U.S.C. 80b– 14) is amended— (A) by striking ‘‘The district’’ and inserting the fol- lowing: ‘‘(a) IN GENERAL.—The district’’; and (B) by adding at the end the following new subsection: ‘‘(b) EXTRATERRITORIAL JURISDICTION.—The district courts of the United States and the United States courts of any Territory shall have jurisdiction of an action or proceeding brought or instituted by the Commission or the United States alleging a viola- tion of section 206 involving— ‘‘(1) conduct within the United States that constitutes significant steps in furtherance of the violation, even if the violation is committed by a foreign adviser and involves only foreign investors; or ‘‘(2) conduct occurring outside the United States that has a foreseeable substantial effect within the United States.’’. (c) CONTROL PERSON LIABILITY UNDER THE SECURITIES EXCHANGE ACT OF 1934.—Section 20(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78t(a)) is amended by inserting after ‘‘con- trolled person is liable’’ the following: ‘‘(including to the Commission in any action brought under paragraph (1) or (3) of section 21(d))’’. SEC. 929Q. REVISION TO RECORDKEEPING RULE. (a) INVESTMENT COMPANY ACT OF 1940 AMENDMENTS.—Section 31 of the Investment Company Act of 1940 (15 U.S.C. 80a–30) is amended— (1) in subsection (a)(1), by adding at the end the following: ‘‘Each person having custody or use of the securities, deposits, or credits of a registered investment company shall maintain and preserve all records that relate to the custody or use by such person of the securities, deposits, or credits of the registered investment company for such period or periods as the Commission, by rule or regulation, may prescribe, as nec- essary or appropriate in the public interest or for the protection of investors.’’; and (2) in subsection (b), by adding at the end the following: ‘‘(4) RECORDS OF PERSONS WITH CUSTODY OR USE.—
