Page:United States Statutes at Large Volume 104 Part 1.djvu/974

 104 STAT. 940 PUBLIC LAW 101-429—OCT. 15, 1990 "(2) APPLICABILITY.— T his subsection shall apply only to a respondent that acts, or, at the time of the alleged misconduct acted, as a broker, dealer, investment adviser, investment company, municipal securities dealer, government securities broker, government securities dealer, or transfer agent, or is, or was at the time of the alleged misconduct, an Eissociated person of, or a person seeking to become associated with, any of the foregoing. "(d) REVIEW OF TEMPORARY ORDERS. — "(1) COMMISSION REVIEW.—At any time after the respondent has been served with a temporary cease-and-desist order pursuant to subsection (c), the respondent may apply to the Commission to have the order set aside, limited, or suspended. If the respondent has been feerved with a temporary cease-and-desist order entered without a prior Commission hearing, the respondent may, within 10 days after the date on which the order was served, request a hearing on such application and the Commission shall hold a hearing and render a decision on such application at the earliest possible time. "(2) JUDICIAL REVIEW. —Within— "(A) 10 days after the date the respondent was served with a temporary cease-and-desist order entered with a prior Commission hearing, or "(B) 10 days after the Commission renders a decision on an application and hearing under paragraph (1), with rfespect to any temporary ceeise-and-desist order entered without a prior Commission hearing, the respondent may apply to the United States district court for the district in which the respondent resides or has its principal place of business, or for the District of Columbia, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease-and-desist order entered without a prior Commission hearing may not apply to the court except after hearing and decision by the Commission on the respondent's application under paragraph (1) of this subsection. "(3) No AUTOMATIC STAY OF TEMPORARY ORDER. —The commencement of proceedings under paragraph (2) of this subsection shall not, unless specifically ordered by the court, operate as a stay of the Commission's order. "(4) EXCLUSIVE REVIEW.— Section 25 of this title shall not apply to a temporary order entered pursuant to this section. "(e) AUTHORITY TO ENTER AN ORDER REQUIRING AN ACCOUNTING AND DISGORGEMENT. —In any cease-and-desist proceeding under subsection (a), the Commission may enter an order requiring accounting and disgorgement, including reasonable interest. The Commission is authorized to adopt rules, regulations, and orders concerning payments to investors, rates of interest, periods of accrual, and such other matters as it deems appropriate to implement this subsection.". SEC. 204. PROCEDURAL RULES FOR CEASE-AND-DESIST PROCEEDINGS. Section 23 of the Securities Exchange Act of 1934 (15 U.S.C. 78w) is amended by adding at the end thereof the following new subsection: Regulations. "(d) CEASE-AND-DESIST PROCEDURES.— Within 1 year after the date of enactment of this subsection, the Commission shall establish

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