CITE

    15 USC Sec. 78d-3                                           01/08/2008

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2B - SECURITIES EXCHANGES

HEAD

    Sec. 78d-3. Appearance and practice before the Commission

STATUTE

    (a) Authority to censure
      The Commission may censure any person, or deny, temporarily or
    permanently, to any person the privilege of appearing or practicing
    before the Commission in any way, if that person is found by the
    Commission, after notice and opportunity for hearing in the matter -
        (1) not to possess the requisite qualifications to represent
      others;
        (2) to be lacking in character or integrity, or to have engaged
      in unethical or improper professional conduct; or
        (3) to have willfully violated, or willfully aided and abetted
      the violation of, any provision of the securities laws or the
      rules and regulations issued thereunder.
    (b) Definition
      With respect to any registered public accounting firm or
    associated person, for purposes of this section, the term "improper
    professional conduct" means -
        (1) intentional or knowing conduct, including reckless conduct,
      that results in a violation of applicable professional standards;
      and
        (2) negligent conduct in the form of -
          (A) a single instance of highly unreasonable conduct that
        results in a violation of applicable professional standards in
        circumstances in which the registered public accounting firm or
        associated person knows, or should know, that heightened
        scrutiny is warranted; or
          (B) repeated instances of unreasonable conduct, each
        resulting in a violation of applicable professional standards,
        that indicate a lack of competence to practice before the
        Commission.

SOURCE

    (June 6, 1934, ch. 404, title I, Sec. 4C, as added Pub. L. 107-204,
    title VI, Sec. 602, July 30, 2002, 116 Stat. 794.)