Page:United States Statutes at Large Volume 78.djvu/667

 78 STAT. ]

PUBLIC LAW 88-503-AUG. 30, 1964

625

by any person who may have a cause of action arising under section 14 of this Act, and, if the Commission by rule or order requires, by any person who may have a cause of action not arising under this Act. Every bond shall provide that no suit may be maintained,to enforce any liability on the bond unless brought within two years after the sale or other act upon which such liability is based. (f) The license of a broker-dealer or agent may be renewed by filing with the Commission prior to the expiration thereof an application containing such information as the Commission may require to indicate any material change in the information contained in the original application or any renewal thereof, payment of the prescribed fee and, in the case of a broker-dealer, a financial statement showing the financial condition of such broker-dealer as of a date within one year prior to the date of such application for renewal. U N L A W F U L REPRESENTATION CONCERNING LICENSING

SEC. 6. (a) Neither the fact that an application for a license has been filed nor the fact that a person is enectively licensed shall constitute a finding by the Commission that smy document filed under this Act, or that any statement made therein, is true, complete, and not misleading. Neither any such fact nor the fact that an exemption is available for any person, security or transaction shall mean that the Commission has passed in any way upon the merits or qualifications of, or recommended or given approval to, any person, security, or transaction. (b) I t shall be unlawful for any broker-dealer or agent to make, or cause to be made, to any prospective purchaser, customer, or client any representation inconsistent with subsection (a). RECORDS A N D REPORTS

SEC. 7. (a) Every licensed broker-dealer and agent shall make, keep, and preserve for such periods, such accounts, correspondence, memorandums, papers, books, and other records, and make such reports, as the Commission by rule shall prescribe as necessary or appropriate in the public interest or for the protection of investors. (b) All the records and reports referred to in subsection (a) shall be sumect at any time or from time to time to such reasonable periodic, special, or other examinations by the Commission, within or without the District, as the Commission may deem necessary or appropriate in the public interest or for the protection of investors. For the purpose of avoiding unnecessary duplication of examinations, the Commission, insofar as it may deem it practicable in administering this subsection, may cooperate with the securities administrator of any State, the Securities and Exchange Commission, and any national securities exchange or national securities association registered under the Securities Exchange Act of 1934. FILING o r

SALES AND ADVERTISING

LITERATURE

S E C 8. The Commission may by order require any specific brokerdealer or agent to file with the Commission any prospectus, pamphlet, circular, form letter, advertisement, or other sales literature or advertising communication addressed or intended for distribution to prospective investors, except sales and advertising literature describing an exempt security as defined in section 2(e) or used in an exempt transaction as defined in section 2(f).

ff f\f* 15 USC

881. 78a.

�