Page:United States Statutes at Large Volume 100 Part 4.djvu/483

 PUBLIC LAW 99-571—OCT. 28, 1986

100 STAT. 3219

"(D) Nothing in subparagraph (A), (B), or (C) of this paragraph shall be construed to permit a registered securities association to deny membership to or condition the membership of, or bar any person from becoming associated with or condition the association of any person with, a broker or dealer that engages exclusively in transactions in exempted securities."; (B) by redesignating paragraph (4) as paragraph (5); and (C) by inserting after paragraph (3) the following new '^"' paragraph: "(4)(A) A registered securities association may deny membership to, or condition the membership of, a government securities broker or government securities dealer if such government securities broker or government securities dealer (i) does not meet standards of financial responsibility under rules adopted pursuant to section 15C(b)(l)(A) of this title, or (ii) has engaged and there is a reasonable likelihood that it will again engage in any conduct or practice which would subject such government securities broker or government securities dealer to sanctions under section 15C(c) of this title. A registered securities association may establish procedures including examination of the books and records of government securities brokers and government securities dealers to verify compliance with the provisions of this title and the rules thereunder. "(B) A registered securities association may bar any person from becoming associated with a member or condition the association of a person with a member (i) if such person has engaged in any conduct or practice and there is a reasonable likelihood that such person will again engage in any conduct or practice which would subject such person to sanctions under section 15C(c) of this title, or (ii) if such person does not agree to supply such association with such information with respect to its relationship and dealings with the member as may be specified in the rules of the association and to permit examination of its books and records to verify the accuracy thereof.".

Ante, p. 3208.

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(h) FILING OF AND ACCESS TO DOCUMENTS.—Section 17(c) of the Act

(15 U.S.C. 78q(c)) is amended by adding at the end thereof the following new paragraph: "(4) The Commission or the appropriate regulatory agency may specify that documents required to be filed pursuant to this subsection with the Commission or such agency, respectively, may be retained by the originating clearing agency, transfer agent, or municipal securities dealer, or filed with another appropriate regulatory agency. The Commission or the appropriate regulatory agency (as the case may be) making such a specification shall continue to have access to the document on request.". (i) LOST AND STOLEN SECURITIES.—Section 17(f) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(f)) is amended— (1) in paragraph (1) by inserting "government securities broker, government securities dealer," after "municipal securities dealer,"; ^" (2) in paragraph (1)(A), by inserting "and, in the case of government securities, to the Secretary of the Treasury" after "Commission" the second time it appears; and (3) in paragraph (3)— (A) by inserting "(A)" after "(3)"; and (B) by adding the following new subparagraph: "(B) In order to carry out the authority under paragraph (1) of this subsection, the Commission or its designee and the Secretary of the

Contracts.

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