US Code Title 15 Section 78

CITE

    15 USC Sec. 78iii                                           01/08/2008

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2B091 - SECURITIES INVESTOR PROTECTION

HEAD

    Sec. 78iii. Functions of self-regulatory organizations

STATUTE

    (a) Collection 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, 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 78ddd of this title only to the
    extent that payments of such assessment are 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.
    (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 78eee(a)(1) and section 78eee(a)(2) of this title.
    (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 78q(d) of this title, shall designate one of such self-
      regulatory organizations or itself as responsible for the
      examination of such member for compliance with applicable
      financial responsibility rules.
    (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
      The Commission may, by such rules as it determines necessary or
    appropriate in the public interest and to carry out the purposes of
    this chapter, 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.

SOURCE

    (Pub. L. 91-598, Sec. 13, formerly Sec. 9, Dec. 30, 1970, 84 Stat.
    1654; amended Pub. L. 94-29, Sec. 26, June 4, 1975, 89 Stat. 163;
    renumbered Sec. 13 and amended Pub. L. 95-283, Secs. 9, 12, May 21,
    1978, 92 Stat. 260, 269.)

REFERENCES IN TEXT

      This chapter, referred to in subsec. (f), was in the original
    "this Act", meaning Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636.
    For complete classification of this Act to the Code, see Tables.

AMENDMENTS

      1978 - Subsec. (a). Pub. L. 95-283, Sec. 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.
      Subsec. (b). Pub. L. 95-283, Sec. 12(b), inserted reference to
    section 78eee(a)(2) of this title.
      Subsec. (c). Pub. L. 95-283, Sec. 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).
      Subsec. (f). Pub. L. 95-283, Sec. 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.
      1975 - 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.
                     EFFECTIVE DATE OF 1975 AMENDMENT
      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.