Page:United States Statutes at Large Volume 78.djvu/618

 576

48 Stat. 904. 15 Tier' •7otf 1 c u s e 78ff.

PUBLIC LAW 88-467-AUG. 20, 1964

[78 STAT.

" (A) appropriately classify prospective members (taking into account relevant matters, including type of business done and nature of securities sold) and persons proposed to be associated with members. " (B) specify that all or any portion of such standards shall be applicable to any such class. " (C) require persons in any such class to pass examinations prescribed in accordance with such rules. " (D) provide that persons in any such class other than prospective members and partners, officers and supervisory employees (which latter term may be defined by such rules and as so defined shall include branch managers of members) of members, may be qualified solely on the basis of compliance with specified standards of training and such other qualifications as the association finds appropriate. " (E) provide that applications to become a member or a person associated with a member shall set forth such facts as the association may prescribe as to the training, experience, and other qualifications (including, in the case of an appilicant for membership, financial responsibility) of the applicant and that the association may adopt procedures for verification of qualifications of the applicant. " (F) require any class of persons associated with a member to be registered with the association in accordance with procedures specified by such rules (and any application or document supplemental thereto required by such rules of a person seeking to be registered with such association shall, foj. the Durposcs of subsection (a) of section 32 of this title,.

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be deemed an application required to be tiled under this title)." (5) Redesignated paragraph (9) is amended to read as follows: "(9) the rules of the association provide that its members and persons associated with its members shall be appropriately disciplined, by expulsion, suspension, fine, censure, or being suspended or barred from being associated with all members, or any other fitting penalty, for any violation of its rules.". (6) Redesignated paragraph (10) is amended to read as follows: "(10) the rules of the association provide a fair and orderly procedure with respect to the disciplining of members and persons associated with members and the denial of membership to any broker or dealer seeking membership therein or the barring of any person from being associated with a member. I n any proceeding to determine whether any member or other person shall be disciplined, such rules shall require that specific charges be brought; that such member or person shall be notified of, and be given an opportunity to defend against, such charges; that a record shall be kept; and that the determination shall include— " (A) a statement setting forth any act or practice in which such member or other person may be found to have engaged, or which such member or other person may be found to have omitted. " (B) a statement setting forth the specific rule or rules of the association of which any such act or practice, or omission to act, is deemed to be in violation. " (C) a statement whether the acts or practices prohibited by such rule or rules, or the omission of any act required thereby, are deemed to constitute conduct inconsistent with just and equitable principles of trade. " (D) a statement setting forth the penalty imposed.

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