Page:United States Statutes at Large Volume 84 Part 2.djvu/324

 1654

PUBLIC LAW 91.598-DEC. 30, 1970

[84 STAT.

SEC. 9. FUNCTIONS OF SELF-REGULATORY ORGANIZATIONS. (a) COLLECTING AGENT.—Each self-regulatory organization shall

78^stat^s*74°.^°' 48 Stat. 898; 82 Stat. 453. 788. "" '

act as collection agent for S I P C to collect the assessments payable by all members of S I P C for whom such self-regulatory organization is the examining authority, and members of S I P C who are not members of any self-regulatory organization shall make payment direct to S I P C. An examining authority shall be obligated to remit to S I P C assessments made under section 4 only to the extent that payments of such assessments are received by such examining authority. (b) IMMUNITY.—No self-regulatory organization shall have any liability to any person for any action taken or omitted in good faith pursuant to section 5(a)(1). (c) INSPECTIONS.—The self-regulatory organization of which a member of S I P C is a member shall inspect or examine such member for compliance with applicable financial responsibility rules, except that if a member of S I P C is a member of more than one self-regulatory organization, S I P C shall designate one of such self-regulatory organizations to inspect or examine such member of S I P C for compliance with applicable financial responsibility rules. Such self-regulatory organization shall be selected by S I P C on the basis of regulatory procedures employed, availability of staff, convenience of location, and such other factors as S I P C may consider appropriate for the protection of customers of its members. (d) REPORTS.—There shall be filed with S I P C by the self-regulatory organizations such reports of inspections or examinations of the members of S I P C (or copies thereof) as may be designated by S I P C by bylaw or rule. (e) CONSULTATION.—SIPC shall consult and cooperate with the self-regulatory organizations toward the end: (1) that there may be developed and carried into effect procedures reasonably designed to detect approaching financial difficulty upon the part of any member of S I P C; (2) that, as nearly as may be practicable, examinations to ascertain whether members of S I P C are in compliance with applicable financial responsibility rules will be conducted by the selfregulatory organizations under appropriate standards (both as to method and scope) and reports of such examinations will, where appropriate, be standard in form; and (3) that, as frequently as may be practicable under the circumstances, each member of S I P C will file financial information with, and be examined by, the self-regulatory organization which is the examining authority for such member. (f) FINANCIAL CONDITION or MEMBERS.—Notwithstanding the limitatious Contained in sections 15A and 19 of the 1934 Act and without limiting its powers, under those or other sections of the 1934 Act, the Commission may by such rules or regulations as it determines to be necessary or appropriate in the public interest and to effectuate the purposes of this Act— (1) require any self-regulatory organization to adopt any specifiea alteration of or supplement to its rules, practices, and procedures with respect to the frequency and scope of inspections and examinations relating to the financial condition of members of such self-regulatory organization and the selection and qualification of examiners; (2) require any self-regulatory organization to furnish S I P C and the Commission with reports and records or copies thereof relating to the financial condition of members of such self-regulatory organization; and

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