ELIMINATION OF CERTAIN ABUSIVE PRACTICES.

SEC. 103. ELIMINATION OF CERTAIN ABUSIVE PRACTICES. (a) Prohibition of Referral Fees.—Section 15(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(c)) is amended by adding at the end the following new paragraph: “(8) Prohibition of referral fees.—No broker or dealer, or person associated with a broker or dealer, may solicit or accept, directly or indirectly, remuneration for assisting an attorney in obtaining the representation of any person in any private action arising under this title or under the Securities Act of 1933.”. (b) Prohibition of Attorneys’ Fees Paid From Commission Disgorgement Funds.— (1) Securities act of 1933.—Section 20 of the Securities Act of 1933 (15 U.S.C. 77t) is amended by adding at the end the following new subsection: “(f) Prohibition of Attorneys’ Fees Paid From Commission Disgorgement Funds.—Except as otherwise ordered by the court upon motion by the Commission, or, in the case of an administrative action, as otherwise ordered by the Commission, funds disgorged as the result of an action brought by the Commission in Federal court, or as a result of any Commission administrative action, shall not be distributed as payment for attorneys’ fees or expenses incurred by private parties seeking distribution of the disgorged funds.”. (2) Securities exchange act of 1934.—Section 21(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)) is amended by adding at the end the following new paragraph: “(4) Prohibition of attorneys’ fees paid from commission disgorgement funds.—Except as otherwise ordered by the court upon motion by the Commission, or, in the case of an administrative action, as otherwise ordered by the Commission, funds disgorged as the result of an action brought 109 STAT. 757 by the Commission in Federal court, or as a result of any Commission administrative action, shall not be distributed as payment for attorneys’ fees or expenses incurred by private parties seeking distribution of the disgorged funds.”.