Page:United States Statutes at Large Volume 84 Part 2.djvu/314

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PUBLIC LAW 91-598-DEC. 30, 1970

[84 STAT.

notes or other obligations shall be treated as pnblic debt transactions ol' the United States. (i) ''GROSS REVENUES" DEFINED.—

(1) IN GENERAL,—For purposes of this Act, the tenn "gross revenues from the securities business" means the sum of (but without duplication): (A) commissions earned in connection with transactions in securities effected for customers as agent (net of commissions paid to other brokers and dealers in connection with such transactions) and markups in respect of purchases or sales of securities as principal, (B) charges for executing or clearing transactions in securities for other brokers and dealers, (C) the net realized gain, if any, from principal transactions in securities in trading accounts, (D) the net profit, if any, from the management of or participation in the underwriting or distribution of securities, (E) interest earned on customers' securities accounts, (F) fees for investment advisory services (except when rendered to one or more registered investment companies or insurance company separate accounts) or account supervision in respect of securities, (G) fees for the solicitation of proxies with respect to, or tenders or exchanges of, securities, (H) income from service charges or other surcharges in respect of securities, (I) except as otherwise provided by rule or regulation of the Commission, dividends and interest received on securities in investment accounts of the broker or dealer, (J) fees in connection with put, call, and other option transactions in securities, and (K) fees and other income for all other investment banking services. Such term does not include revenues received by a broker or dealer in connection with the distribution of shares of a registered open end investment company or unit investment trust or revenues derived by a broker or dealer from the sale of variable annuities or from the conduct of the business of insurance. (2) CONSOLIDATED GROUP.—Except as otherwise provided by

S I P C by bylaw or rule, gross revenues from the securities business of a broker or dealer shall be computed on a consolidated basis for such broker or dealer and all its subsidiaries, and the operations of a broker or dealer shall include those of any business to which such broker or dealer has succeeded. (3) MEANING or TERMS NOT DEFINED.—SIPC may by bylaw or rule define all terms used in this subsection insofar as such definitions are not inconsistent wath the provisions of this subsection. SEC. 5. PROTECTION OF CUSTOMERS. (a) DETERMINATION OF N E E D OF PROTECTION. — (1) NOTICE TO SIPC.—If the Commission or

any self-regulatory organization is aware of facts which lead it to believe that any broker or dealer subject to its regulation is in Or is approaching financial difficulty, it shall immediately notify S I P C, and, if such notification is by a self-regulatory organization, the Commission. (2) ACTION BY SIPC.—If S I P C determines that any member has failed or is in danger of failing to meet its obligations to

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