Page:United States Statutes at Large Volume 52.djvu/1114

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 677-JUNE 25, 1938 written notice of withdrawal in such form as the Commission may by rules and regulations prescribe. Upon the withdrawal of a national securities association from registration, the registration of any association affiliated therewith shall automatically terminate. "(g) If any registered securities association (whether national or Review of discipli- affiliated) shall take any disciplinary action against any member regiytered securities thereof, or shall deny admission to any broker or dealer seeking mem- member.' against bership therein, such action shall be subject to review by the Com- mission, on its own motion, or upon application by any person aggrieved thereby filed within sixty days after such action has been taken or within such longer period as the Commission may determine. Application to the Commission for review, or the institution of review Application for re- by the Commission on its own motion, shall operate as a stay of stayof suchaction. such action until an order is issued upon such review pursuant to subsection (h). "(h) (1) In a proceeding to review disciplinary action taken by a virocedureinre registered securities associat against a mm thereof, if the action. Commission, after appropriate notice and opportunity for hearing, upon consideration of the record before the association and such other evidence as it may deem relevant, shall (A) find that such member has engaged in such acts or practices, or has omitted such act, as the association has found him to have engaged in or omitted, and (B) shall determine that such acts or practices, or omission to act, are in violation of such rules of the association as have been designated in the determination of the association, the Commission shall by order dismiss the proceeding, unless it appears to the Com- mission that such action should be modified in accordance with para- graph (2) of this subsection. The Commission shall likewise deter- mine whether the acts or practices prohibited, or the omission of any act required, by any such rule constitute conduct inconsistent with just and equitable principles of trade, and shall so declare. If if evidence does not it appears to the Commission that the evidence does not warrant the w arra n t g. finding required in clause (A), or if the Commission shall determine that such acts or practices as are found to have been engaged in are not prohibited by the designated rule or rules of the association, or that such act as is found to have been omitted is not required by such designated rule or rules, the Commission shall by order set aside the action of the association. "(2) If, after appropriate notice and opportunity for hearing, the ,if penalty imposed Commission finds that any penalty imposed upon a member is exces- exc, etc sive or oppressive, having due regard to the public interest, the Commission shall by order cancel, reduce, or require the remission of such penalty. "(3) In any proceeding to review the denial of membership in a Proceedings to re- view denial of mem- registered securities association, if the Commission, after appropriate bership. notice and hearing, and upon consideration of the record before the association and such other evidence as it may deem relevant, shall determine that the specific grounds on which such denial is based exist in fact and are valid under this section, the Commission shall by order dismiss the proceeding; otherwise, the Commission shall by order set aside the action of the association and require it to admit the applicant broker or dealer to membership therein. "(i) (1) The rules of a registered securities association may pro- Transactions with nonmember broker or vide that no member thereof shall deal with any nonmember broker dealer. or dealer (as defined in paragraph (2) of this subsection) except at the same prices, for the same commissions or fees, and on the same terms and conditions as are by such member accorded to the general public. 36525° - 3S- -- --6 1073

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