Page:United States Statutes at Large Volume 84 Part 2.djvu/101

 84

STAT.

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PUBLIC LAW 91-547-DEC. 14, 1970

1431

"(F) whetlier such investment adviser, or any person associated with such investment adviser, is subject to any disqualification which would be a basis for denial, suspension, or revocation of registration of such investment adviser under the provisions (c) Section 203 of'such Act (15 U.S.C. 80b-3) is further amended y^^l^H^'^^f^' by redesignating subsection (d) as subsection (e), redesignating subsection (e) as subsection (g), and inserting after subsection (c) anew subsection as follows: "(d) Any provision of this title (other than subsection (a) of this section) which prohibits any act, practice, or course of business if the mails or any means or instrumentality of interstate commerce are used in connection therewith shall also prohibit any such act, practice, or course of business by any investment adviser registered pursuant to this section or any person acting on behalf of such an investment adviser, irrespective of any use of the mails or any means or instrumentality of interstate commerce in connection therewith." (d) Redesignated subsection (e) (formerly subsection (d) of sec- denL^/Vrsurention 203 of such Act) (15 U.S.C. 80b-3(d)) is amended to read as sion? or suspenfollows: "(e) The Commission shall, after appropriate notice and opportu- Hearting oppornity for hearing, by order censure, deny registration to, or suspend tunity. for a period not exceeding twelve months, or revoke the registration of, an investment adviser, if it finds that such censure, denial, suspension, or revocation is in the public interest and that such investment adviser or any person associated with such investment adviser, whether prior to or subsequent to becoming such— "(1) has willfully made or caused to be made in any application for registration or report filed with the Commission under this title, or in any proceeding before the Commission with respect to registration, any statement which was at the time and in the l i ^ t of the circumstances under which it was made false or misleading with respect to any material fact, or who has omitted to state in any such application or report any material fact which is required to be stated therein; or "(2) has been convicted within ten years preceding the filing of the application or at any time thereaher ot any felony or misdemeanor which the Commission finds (A) involves the purchase or sale of any security, (B) arises out of the conduct of the business of a broker, dealer, or investment adviser, (C) involves embezzlement,^ fraudulent conversion, or misappropriation of funds or securities, or (D) involves the violation of section 1341, 1342, or 62 Stat. 763. 1343 of title 18, United States Code; or "(3) is permanently or temporarily enjoined by order, judgment or decree of any court of competent jurisdiction from acting as an investment adviser, underwriter, broker, or dealer, or an affiliated person or employee of any investment company, bank, or insurance company, or from engaging in or continuing any conduct or practice m connection with any such activity, or in connection with the purchase or sale of any security; or "(4) has willfully violated any provision of the Securities Act of 1933, or of the Securities Exchange Act of 1934, or of title I of \l J'|^- :i^^ ^^^• this Act, or of this title, or of any rule or regulation under any 78a. of such statutes; or sj stau m. 15 "(5) has aided, abetted, counseled, commanded, induced, or sob-iu s e 80a-l, procured the violation by any other person of the Securities Act of 1933, or the Securities Exchange Act of 1934, or of title I of this Act, or of this title, or of any rule or regulation under any of such statutes or has failed reasonably to supervise, with a view to pre-

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