Page:United States Statutes at Large Volume 104 Part 1.djvu/1004

 104 STAT. 970 PUBLIC LAW 101-432—OCT. 16, 1990 15 USC 78o-5. (I,) CONFORMING AMENDMENT.— Section 15C0)) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-4(b)) is amended— (1) by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively; and (2) by inserting after paragraph (1) the following new paragraph: "(2) RISK ASSESSMENT FOR HOLDING COMPANY SYSTEMS. — Records. "(A) OBLIGATIONS TO OBTAIN, MAINTAIN, AND REPORT INFORMA- TION. —Every person who is registered as a government securities broker or government securities dealer under this section shall obtain such information and make and keep such records as the Secretary by rule prescribes concerning the registered person's policies, procedures, or systems for monitoring and controlling financial and operational risks to it resulting from the activities of any of its associated persons, other than a natural person. Such records shall describe, in the aggregate, each of the financial and securities activities conducted by, and customary sources of capital and funding of, those of its associated persons whose business activities are reasonably likely to have a material impact on the financial or operational condition of such registered person, including its capital, its liquidity, or its ability to conduct or finance its operations. The Secretary, by rule, may require summary reports of such information to be filed with the registered person s appropriate regulatory agency no more frequently than quarterly. " (B) AUTHORITY TO REQUIRE ADDITIONAL INFORMATION. —If, as a result of adverse market conditions or based on reports provided pursuant to subparagraph (A) of this paragraph or other available information, the appropriate regulatory agency reasonably concludes that it has concerns regarding the financial or operational condition of any government securities broker or government securities dealer registered under this section, such agency may require the registered person to make reports concerning the financial and securities activities of any of such person's associated persons, other than a natural person, whose business activities are reasonably likely to have a material impact on the financial or operational condition of such registered person. The appropriate regulatory agency, in requiring reports pursuant to this subparagraph, shall specify the information required, the period for which it is required, the I time and date on which the information must be furnished, and whether the information is to be furnished directly to the appropriate regulatory agency or to a self-regulatory organization with primary responsibility for examining the registered person's financial and operational condition. " (C) SPECIAL PROVISIONS WITH RESPECT TO ASSOCIATED PERSONS SUBJECT TO FEDERAL BANKING AGENCY REGULATION.— "(i) COOPERATION IN IMPLEMENTATION. — In developing and implementing reporting requirements pursuant to subparagraph (A) of this paragraph with respect to associated persons subject to examination by or reporting requirements of a Federal banking agency, the Secretary shall ^ consult with and consider the views of each such Federal banking agency. If a Federal banking agency comments in writing on a proposed rule of the Secretary under this paragraph that has been published for comment, the Secretary shall respond in writing to such written comment

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