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Panel backs HB 559 to create securities‑fraud compensation fund financed by fines and fees
Summary
HB 559 would let the Securities Commission establish a market accountability compensation fund, funded by industry fines and fees, to provide relief to securities‑fraud victims with emphasis on senior investors; committee adopted an amendment and passed the bill as amended.
Representative Underwood told the State Government committee HB 559 is "the first of its kind in the state of Alabama," describing a framework for the Securities Commission to establish a market accountability compensation fund to assist victims of securities fraud and offset some recovery costs. He said the fund would be composed of fines and fees collected through the Commission's regulation of the industry and would not use general fund dollars.
The sponsor emphasized attention to senior investors as a key focus of the fund. The committee considered and adopted an amendment (noted as replacing lines 220–221), then moved, seconded and passed HB 559 as amended by voice vote. Representative Sales then turned the chair to Representative B to continue the agenda.
Representative Underwood described the bill as a measure to increase investor confidence in the state by providing a route for monetary relief to victims of fraud.
