§ 78iii. Functions of self-regulatory organizations

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 § 13 · 84 Stat. 1620

   Enacted · 15 U.S.C. § 78iii

   Pub. L. 91–598, § 13, formerly § 9, Dec. 30, 1970, 84 Stat. 1654

   Target inherited from the preceding amendment note.

   Source evidence

   Code source credit
   Pub. L. 91–598, § 13, formerly § 9, Dec. 30, 1970, 84 Stat. 1654

   Enacted provision · exact public law section
   SEC. 9. FUNCTIONS OF SELF-REGULATORY ORGANIZATIONS. (a) Collecting Agent.— Each self-regulatory organization shall act as collection agent for SIPC to collect the assessments payable by all members of SIPC for whom such self-regulatory organization is the examining authority, and members of SIPC who are not members of any self-regulatory organization shall make payment direct to SIPC. An examining authority shall be obligated to remit to SIPC assessments made under section 4 only to the extent that payments of such assessments are received by such examining authority. (b) Immunity.— No self-regulatory organization shall have any liability to any person for any action taken or omitted in good faith pursuant to section 5(a)(1). (c) Inspections.— The self-regulatory organization of which a member of SIPC is a member shall inspect or examine such member for compliance with applicable financial responsibility rules, except that if a member of SIPC is a member of more than one self-regulatory organization, SIPC shall designate one of such self-regulatory organizations to inspect or examine such member of SIPC for compliance with applicable financial responsibility rules. Such self-regulatory organization shall be selected by SIPC on the basis of regulatory procedures employed, availability of stall, convenience of location, and such other factors as SIPC may consider appropriate for the protection of customers of its members. (d) Reports.— There shall be filed with SIPC by the self-regulatory organizations such reports of inspections or examinations of the members of SIPC (or copies thereof) as may be designated by SIPC by bylaw or rule. (e) Consultation.— SIPC shall consult and cooperate with the self-regulatory organizations toward the end: (1) that there may be developed and carried into effect procedures reasonably designed to detect approaching financial difficulty upon the part, of any member of SIPC; (2) that, as nearly as may be practicable, examinations to ascertain whether members of SIPC are in compliance with applicable financial responsibility rules will be conducted by the self- regulatory organizations under appropriate standards (both as to method and scope) and reports of such examinations will, where appropriate, be standard in form; and (3) that, as frequently as may be practicable under the circumstances, each member of SIPC will file financial information with, and be examined by, the self-regulatory organization which is the examining authority for such member. (f) Financial Condition of Members.— Notwithstanding the limitations contained in sections 15A and 19 of the 1934 Act and without limiting its powers, under those or other sections of the 1934 Act, the Commission may by such rules or regulations as it determines to be necessary or appropriate in the public interest and to effectuate the purposes of this Act— (1) require any self-regulatory organization to adopt any specified” alteration of or supplement, to its rules, practices, and procedures with respect to the frequency and scope of inspections and examinations relating to the financial condition of members of such self-regulatory organization and the selection and qualification of examiners; (2) require any self-regulatory organization to furnish SIPC and the Commission with reports and records or copies thereof relating to the financial condition of members of such self-regulatory organization; and (3) require any self-regulatory organization to inspect or examine any members of such self-regulatory organization in relation to the financial condition of such members. In the case of a broker or dealer who is a member of more than one self-regulatory organization the Commission, to the extent practicable, shall avoid requiring duplication of examinations, inspections, and. reports.

2. 1975

   Securities Acts Amendments of 1975

   Pub. L. 94–29 § 26 · 89 Stat. 97

   Amended · 15 U.S.C. § 78iii(c)

   Pub. L. 94–29 directed the Commission to designate the self-regulatory organization to be responsible for enforcing applicable rules with respect to any firm which is a member of more than one self-regulatory organization

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 94–29 directed the Commission to designate the self-regulatory organization to be responsible for enforcing applicable rules with respect to any firm which is a member of more than one self-regulatory organization.

   Enacted provision · exact public law section
   Sec. 26. Section 9(c) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78iii(c)) is amended to read as follows: “(c) Inspections.— The self-regulatory organization of which a member of SIPC is a member shall inspect or examine such member for compliance with applicable financial responsibility rules, except that if a member of SIPC is a member of more than one self-regulatory organization, the Commission, pursuant to section 17(d) of the Ante, p. 137. 1934 Act, shall designate one of such self-regulatory organizations as responsible for the examination of such member for compliance with applicable financial responsibility rules.”.

   Effective date note
   Amendment by Pub. L. 94–29 effective June 4, 1975, see section 31(a) of Pub. L. 94–29, set out as a note under section 78b of this title.

3. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 12(a) · 92 Stat. 249

   1. Substituted · 15 U.S.C. § 78iii(a)

      Pub. L. 95–283, § 12(a), in heading substituted “Collection” for “Collecting”, and in text inserted provisions relating to designation of a self-regulatory organization other than the examining authority to act as collection agent and provisions relating to designation of a registered clearing agency as collection agent

   2. Substituted · 15 U.S.C. § 78iii(a)

      Pub. L. 95–283, § 12(a), in heading substituted provisions relating to remittances by the collection agent to SIPC, for provisions relating to remittances by an examining authority to SIPC

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 95–283, § 12(a), in heading substituted “Collection” for “Collecting”, and in text inserted provisions relating to designation of a self-regulatory organization other than the examining authority to act as collection agent and provisions relating to designation of a registered clearing agency as collection agent, and substituted provisions relating to remittances by the collection agent to SIPC, for provisions relating to remittances by an examining authority to SIPC.

   Enacted provision · exact public law section
   (a) of such Act (15 U.S.C. 78iii(a)), as redesignated by this Act, is amended to read as follows: “(a) Collection Agent.— Each self-regulatory organization shall act as collection agent for SI PC to collect the assessments payable, by all members of SI PC for whom such self-regulatory organization is the examining authority, unless SIPC designates a self-regulatory organization other than the examining authority to act as collection agent for any member of SIPC who is a member of or participant in more than one self-regulatory organization. If the only self-regulatory organization of which a member of SIPC is a member or in which it is a participant is a registered clearing agency that is not the examining authority for the member, SIPC may, nevertheless, designate such registered clearing agency as collection agent for the member or may require that payments be made directly to SIPC. The collection agent shall be obligated to remit to SIPC assessments made under section 4 only to the extent that payments of such assessment are 15 USC 78ddd. received by such collection agent. Members of SIPC who are not members of or participants in a self-regulatory organization shall make payments directly to SIPC.”.

4. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 12(b) · 92 Stat. 249

   Inserted · 15 U.S.C. § 78iii(b)

   Pub. L. 95–283, § 12(b), inserted reference to section 78eee(a)(2) of this title

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 95–283, § 12(b), inserted reference to section 78eee(a)(2) of this title.

   Enacted provision · exact public law section
   (b) Section 13(b) of such Act (15 U.S.C. 78iii(b)), as redesignated by this Act, is amended by inserting “and section 5(a)(2)” immediately after “section 5(a)(1)”.

5. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 12(c) · 92 Stat. 249

   1. Inserted · 15 U.S.C. § 78iii(c)

      Pub. L. 95–283, § 12(c), revised existing format and provisions into introductory text and cl. (2) and, as so revised, in introductory text inserted provisions respecting participation by a member of SIPC in a self-regulatory organization and in cl. (2) inserted provisions respecting such participation and authorization for the Commission to designate itself as responsible for the statutory examination

   2. Added · 15 U.S.C. § 78iii(c)

      Pub. L. 95–283, § 12(c), revised existing format and provisions into introductory text and cl. (2) and, as so revised, in introductory text added cl. (1)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 95–283, § 12(c), revised existing format and provisions into introductory text and cl. (2) and, as so revised, in introductory text inserted provisions respecting participation by a member of SIPC in a self-regulatory organization and in cl. (2) inserted provisions respecting such participation and authorization for the Commission to designate itself as responsible for the statutory examination, and added cl. (1).

   Enacted provision · exact public law section
   (c) Section 13(c) of such Act (15 U.S.C. 78iii(c)), as redesignated by this Act, is amended to read as follows: “(c) Inspections.— The self-regulatory organization of which a member of SIPC is a member or in which it is a participant shall inspect or examine such member for compliance with applicable financial responsibility rules, except that— “(1) if the self-regulatory organization is a registered clearing agency, the Commission may designate itself as responsible for the examination of such member for compliance with applicable financial responsibility rules; and “(2) if a member of SIPC is a member of or participant in more than one self-regulatory organization, the Commission, pursuant to section 17 (d) of the 1934 Act, shall designate one of such 15 USC 78q. self-regulatory organizations or itself as responsible for the examination of such member for compliance with applicable financial responsibility rules.”.

6. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 12(d) · 92 Stat. 249

   Substituted · 15 U.S.C. § 78iii(f)

   Pub. L. 95–283, § 12(d), substituted provisions authorizing the Commission to set out rules requiring self-regulatory organizations to furnish SIPC with reports and records of members or participants in such self-regulatory organizations, for provisions authorizing the Commission to set out rules, and regulations requiring self-regulatory organizations to adopt rules, practices, and procedures respecting inspections and examinations of members and examiners, to furnish SIPC and the Commission with reports and records of members, and to inspect or examine members

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 95–283, § 12(d), substituted provisions authorizing the Commission to set out rules requiring self-regulatory organizations to furnish SIPC with reports and records of members or participants in such self-regulatory organizations, for provisions authorizing the Commission to set out rules, and regulations requiring self-regulatory organizations to adopt rules, practices, and procedures respecting inspections and examinations of members and examiners, to furnish SIPC and the Commission with reports and records of members, and to inspect or examine members.

   Enacted provision · exact public law section
   (d) Section 13(f) of such Act (15 U.S.C. 78iii(f)), as redesignated by this Act, is amended to read as follows: “(f) Financial Condition of Members.— The Commission may, by Rules. Reports. such rules as it determines necessary or appropriate in the public interest and to carry out the purposes of this Act, require any self-regulatory organization to furnish SIPC with reports and records (or copies thereof) relating to the financial condition of members of or participants in such self-regulatory organization.”.

8 of 8 references resolved to an enrolled provision