§ 78ggg. SEC functions

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1970

   Securities In rest or Protection Act of 1970

   Pub. L. 91–598 § 11 · 84 Stat. 1620

   Enacted · 15 U.S.C. § 78ggg

   Pub. L. 91–598, § 11, formerly § 7, Dec. 30, 1970, 84 Stat. 1652, 1653

   Source evidence

   Code source credit
   Pub. L. 91–598, § 11, formerly § 7, Dec. 30, 1970, 84 Stat. 1652, 1653

   Enacted provision · exact public law section
   SEC. 11. MISCELLANEOUS PROVISIONS. (a) Public Inspection of Reports.— Any notice, report, or other document filed with SIPC pursuant to this Act shall be available for public inspection unless SIPC or the Commission shall determine that disclosure thereof is not in the public interest. Nothing herein shall act to deny documents or information to the Congress of the United States or the committees of either House having jurisdiction over financial institutions, securities regulation, or related matters under the rules of each body. Nor shall the Commission be denied any document or information which the Commission, in its judgment, needs. (b) Application of Act to Foreign Members.— Except as otherwise provided by rule or regulation of the Commission, if the head office of a member is located, and the member’s principal business is conducted, outside the United States, the provisions of this Act shall apply 1° member only in respect of the business of such member conducted in the United States. (c) Liability of Members of SIPC.— Except for such assessments as may be made upon such member pursuant to the provisions of section 4, no member of SIPC shall have any liability under this Act as a member of SIPC for, or in connection with, any act or omission of any other broker or dealer whether in connection with the conduct of the business or affairs of such broker or dealer or otherwise and, without limiting the generality of the foregoing, no member shall have any liability for or in respect of any indebtedness or other liability of SIPC. (d) Liability of SIPC and Directors.— Neither SIPC nor any of its Directors shall have any liability to any person for any action taken or omitted in good faith under or in connection with any matter contemplated by this Act. (e) Advertising.— SIPC shall by bylaw or rule prescribe the manner in which a member of SIPC may display any sign or signs (or include in any advertisement a statement) relating to the protection to customers and their accounts, or any other protections, afforded under this Act. No member may display any such sign, or include in an advertisement any such statement, except in accordance with such bylaws and rules. (f) SIPC Exempt From Taxation.— SIPC, its property, its franchise, capital, reserves, surplus, and its income, shall be exempt from all taxation now or hereafter imposed by the United States or by any State or local taxing authority, except that any real property and any tangible personal property (other than cash and securities) of SIPC shall be subject to State and local taxation to the same extent according to its value as other real and tangible personal property is taxed. Assessments made upon a member of SIPC shall constitute ordinary and necessary expenses in carrying on the business of such member for the purpose of section 162(a) of the Internal Revenue 68A Stat. 45; 76 Stat. 976. 26 USC 162. Code of 1954. The contribution and transfer to SIPC of funds or securities held by any trust established by a national securities exchange prior to January 1, 1970, for the purpose of providing assistance to customers of members of such exchange, shall not result in any taxable gain to such trust or give rise to any taxable income to any member of SIPC under any provision of the Internal Revenue Code of 1954, nor shall such contribution or transfer, or any reduction in assessments made pursuant to this Act, in any way affect the status, as ordinary and necessary expenses under section 162(a) of the Internal Revenue Code 68A Stat. 3. 26 USC 1 et seq of 1954, of any contributions made to such trust by such exchange at any time, prior to such transfer. Upon dissolution of SIPC, none of its net assets shall inure to the benefit of any of its members. (g) Section 20(a) of 1934 Act Not To Apply.— The provisions of subsection (a) of section 20 of the 1934 Act shall not apply to any liability under or in connection with this Act. (h) SEC Study of Unsafe or Unsound Practices.— Not later than twelve months after the date of enactment of this Act, the Commission shall compile a list of unsafe or unsound practices by members of Report to Congress. SIPC in conducting their business and report to the Congress (1) the steps being taken under the authority of existing law to eliminate those practices and (2) recommendations concerning additional legislation which may be needed to eliminate those unsafe or unsound practices.

2. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 · 92 Stat. 249

   Substituted · 15 U.S.C. § 78ggg(a)

   Pub. L. 95–283 substituted “pursuant to section 78ccc(e)(3) and section 78iii(f) of this title” for “or regulations pursuant to section 78ccc(e) and 78iii(f) of this title”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 95–283 substituted “pursuant to section 78ccc(e)(3) and section 78iii(f) of this title” for “or regulations pursuant to section 78ccc(e) and 78iii(f) of this title”.

1 of 2 references resolved to an enrolled provision · 1 partial