DISQUALIFICATION OF CONVICTED FELONS.

SEC. 305. DISQUALIFICATION OF CONVICTED FELONS. (a) Amendment.—Section 203(e) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(e)) is amended— (1) by redesignating paragraphs (3) through (7) as paragraphs (4) through (8), respectively; and (2) by inserting after paragraph (2) the following new paragraph: “(3) has been convicted during the 10-year period preceding the date of filing of any application for registration, or at any time thereafter, of— “(A) any crime that is punishable by imprisonment for 1 or more years, and that is not described in paragraph (2); or “(B) a substantially equivalent crime by a foreign court of competent jurisdiction.”. (b) Conforming Amendments.—Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3) is amended— (1) in subsection (e)(6) (as redesignated by subsection (a) of this section), by striking “this paragraph (5)” and inserting “this paragraph”; (2) in subsection (f)— (A) by striking “paragraph (1), (4), (5), or (7) of subsection (e) of this section” and inserting “paragraph (1), (5), (6), or (8) of subsection (e)”; (B) by striking “paragraph (3)” and inserting “paragraph (4)”; and (C) by striking “said subsection” each place that term appears and inserting “subsection”; and (3) in subsection (i)(1)(D), by striking “ssection 203(e)(5) of this titles” and inserting “ssubsection (e)(6)s”.