Georgia SB 284 Expands Securities Commissioner Restitution Powers

April 13, 2026

Georgia Securities Enforcement Update: Senate Bill 284 Expands Commissioner’s Restitution Authority

Timothy Fitzmaurice, Lex Diktas Mayo Alston & Bird + Follow Contact LinkedIn Facebook X Send Embed Senate Bill 284 would expand the Georgia Securities Commissioner’s authority by allowing restitution to be ordered directly through administrative proceedings. Our Securities Litigation Group outlines what this expanded authority could mean for enforcement and compliance.

• SB 284 authorizes the Commissioner to order restitution in administrative proceedings, without requiring court action
• This expands enforcement tools beyond cease-and-desist orders, licensing actions, and civil penalties
• The bill maintains existing civil penalty caps unchanged while modifying how restitution may be pursued The Georgia General Assembly has passed Senate Bill 284, which significantly expands the Georgia Securities Commissioner’s enforcement powers under the Georgia Uniform Securities Act of 2008 and now awaits Governor Brian Kemp’s signature.

Key Provisions of SB 284

SB 284 introduces a new enforcement tool. The Commissioner may now order violators to return investors’ principal investment amounts, along with any fees or other monies collected for securities purchases, when an entity or individual violates Georgia’s existing prohibitions on securities fraud, including:

• Employing deceptive schemes to defraud, making false or misleading statements about material facts, or engaging in other fraudulent conduct involving securities transactions.
• Engaging in fraudulent conduct as a paid investment adviser.
• Filing false or misleading records under the Georgia Uniform Securities Act. Those who materially aid in these violations may also be subject to restitution orders from the Commissioner.

Prior Enforcement Limitations

Prior to SB 284, the Commissioner’s administrative enforcement authority was largely limited to three remedies: (1) issuing cease-and-desist orders; (2) denying, suspending, revoking, or conditioning exemptions for broker-dealers and investment advisers; and (3) imposing civil penalties. While the Commissioner previously had authority to seek rescission, restitution, or disgorgement through court proceedings, this required initiating litigation and obtaining a court order.

SB 284 now empowers the Commissioner to order restitution directly through administrative proceedings, bypassing the need for court action and thereby potentially accelerating recovery for investors. The civil penalty caps remain unchanged at up to $50,000 for a single violation or up to $500,000 for more than one violation.

Conclusion

SB 284 represents a meaningful expansion of the Georgia Securities Commissioner’s enforcement toolkit. The bill awaits Governor Kemp’s signature and, if signed, will become effective upon approval.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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