The federal court of appeals for the District of Columbia ruled that the Securities and Exchange Commission impermissibly applied sanctions available for the first time under the Dodd-Frank Wall Street Reform and Consumer Protection Act retroactively to conduct of defendants that occurred prior to enactment of the new law. In an appeal brought by two former investment advisers, Donald Koch and Koch Asset Management LLC (a company owned and controlled by MrKoch), Mr. Koch challenged certain sanctions imposed on him by the SEC. The agency had ruled that the respondents engaged in prohibited marking the close activity in connection with shares of three banks from September through December 2009. As a result, the SEC barred Mr. Koch from working with any stockbroker, dealer or investment adviser going forward (potential sanctions that were available pre-Dodd-Frank), as well as with any municipal adviser or nationally recognized statistical rating agency (potential sanctions that were made available for the first time as part of Dodd-Frank). The court upheld all findings of the SEC against both respondents. However, the court ruled that the agency could not impose sanctions on Mr. Koch that were only available after the enactment of Dodd-Frank in 2010 for conduct that occurred in 2009 prior to the enactment of the new law. According to the court, quoting from another decision, “[a] statement that a statute will become effective on a certain date does not even arguably suggest that it has any application to conduct that occurred on an earlier date.”