Emergency clout for SEC advances

The House of Representatives last week approved legislation giving the Securities and Exchange Commission new authority to respond to emergency situations. The Senate has yet to act on the issue.

The legislation, the Emergency Securities Response Act, stems from the Sept. 11 terrorist attacks. The bill would allow the SEC to extend emergency orders for up to 30 business days, and in some cases 90 calendar days. SEC emergency orders now are limited to 10 business days. The SEC’s emergency relief scope would be widened to include all federal securities laws.