Page:United States Statutes at Large Volume 84 Part 2.djvu/323

 84 STAT. ]

PUBLIC LAW 91-598-DEC. 30, 1970

1653

(b) ENFORCEMENT OF ACTIONS.—In the event of the refusal of S I P C to conunit its funds or otherwise to act for the protection of customers of any member of S I P C, the Commission may apply to the district court of the United States in which the principal office of S I P C is located for an order requiring S I P C to discharge its obligations under this Act and for such other relief as the court may deem appropriate to carry out the purposes of this Act. (c) EXAMINATIONS AND REPORTS.— (1) EXAMINATION OF S I P C, ETC.—The

Commission may make such examinations and inspections of S I P C and require S I P C to furnish it with such reports and records or copies thereof as the Commission may consider necessary or appropriate in the public interest or to effectuate the purposes of this Act. (2) REPORTS FROM SIPC,—As soon as practicable after the close of each fiscal year, S I P C shall submit to the Commission a written report relative to the conduct of its business, and the exercise of the other rights and powers granted by this Act, during such fiscal year. Such report shall include financial statements setting forth the financial position of S I P C at the end of such fiscal year and the results of its operations (including the source and application of its funds) for such fiscal year. The financial statements so included shall be examined by an independent public accountant or firm of independent public accountants, selected by S I P C and satisfactory to the Commission, and shall be accompanied by the report thereon of such accountant or firm. The Commission shall Report, trans.. transmit such report to the President and the Congress with such ^nd congress. comment thereon as the Commission may deem appropriate. (d) FINANCIAL. RESPONSIBILITY.—Section 15(c)(3) of the Securities Exchange Act of 1934 is amended to read as follows: 5 2 Stat. 1075. "(3) No broker or dealer shall make use of the mails or of any means or instrumentality of interstate commerce to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security (other than an exempted security or commercial paper, bankers' acceptances, or commercial bills) in contravention of such rules and regulations as the Commission shall prescribe as necessary or appropriate in the public interest or for the protection of investors to provide safeguards with respect to the financial responsibility and related practices of brokers and dealers including, but not limited to, the acceptance of custody and use of customers' securities, and the carrying and use of customers' deposits or credit balances. Such rules and regulations shall require the maintenance of reserves with respect to customers' deposits or credit balances, as determined by such rules and regulations." SEC. 8. EXAMINING AUTHORITY FUNCTIONS. Each member of S I P C shall file with such member's examining authority such information (including reports of, and information with respect to, the gross revenues from the securities business of such member, including the composition thereof, transactions in securities effected by such member, and other information with respect to such member's activities, whether in the securities business or otherwise, including customer accounts maintained, net capital employed, and activities conducted) as S I P C may determine to be necessary or appropriate for the purpose of making assessments under section 4. The examining authority shall file with S I P C all or such part of such information (and such compilations and analyses thereof) as S I P C, by bylaw or rule, shall prescribe. No application, report, or document filed pursuant to this section shall be deemed to be filed pursuant to section 18 of the 1934 Act. 48 Stat. 897. 15 USC 78r.

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