Page:United States Statutes at Large Volume 84 Part 2.djvu/325

 84 STAT. ]

PUBLIC LAW 91-598-DEC. 30, 1970

(3) require any self-regulatory organization to insj^ect or examine any members of such self-regulatory organization in relation to the financial condition of such members. I n the case of a broker or dealer who is a member of more than one self-regulatory organization the Commission, to the extent practicable, shall avoid requiring duplication of examinations, inspections, and reports. SEC. 10. PROHIBITED ACTS.

(a) FAILURE To P A Y ASSESSMENT, ETC.—If a member of S I P C shall fail to file any report or information required pursuant to this Act, or shall fail to pay when due all or any part of an assessment made upon such member pursuant to this Act, and such failure shall not have been cured, by the filing of such report or information or by the making of such payment, together with interest thereon, within five days after receipt by such member of written notice of such failure given by or on behalf of S I P C, it shall be unlawful for such member, unless specifically authorized by the Commission, to engage in business as a broker or dealer. If such member denies that he owes all or any part of the amount specified in such notice, he may after payment of the full amount so specified commence an action against S I P C in the appropriate United States district court to recover the amount he denies owing. (b)

ENGAGING I N BUSINESS AFTER APPOINTMENT OF TRUSTEE.—It

shall be unlawful for any broker or dealer for whom a trustee has been appointed pursuant to this Act to engage thereafter in business as a broker or dealer, unless the Commission otherwise determines in the public interest. The Commission may by order bar or suspend for any period, any officer, director, general partner, owner of 10 per centum or more of the voting securities, or controlling person of any broker or dealer for whom a trustee has been appointed pursuant to this Act from being or becoming associated with a broker or dealer, if after appropriate notice and opportunity for hearing, the Commission shall determine such bar or suspension to be in the public interest. (c) EMBEZZLEMENT, ETC., or ASSETS OF SIPC.—Whoever steals, un-

lawfully abstracts, unlawfully and willfully converts to his own use or to the use of another, or embezzles any of the moneys, securities, or other assets of S I P C shall be fined not more than $50,000 or imprisoned not more than five years or both. SEC. 11. MISCELLANEOUS PROVISIONS. (a) PuBiJc INSPECTION OF REPORTS.—Any notice, report, or other document filed with S I P C pursuant to this Act shall be available for public inspection unless S I P C or the Commission shall determine that disclosure thereof is not in the public interest. Nothing herein shall act to deny documents or information to the Congress of the United States or the committees of either House having jurisdiction over financial institutions, securities regulation, or related matters under the rules of each body. Nor shall the Commission be denied any document or information which the Commission, in its judgment, needs. (b) APPLICATION OF ACT TO FOREIGN MEMBERS.—Except as otherwise provided by rule or regulation of the Commission, if the head office of a member is located, and the member's principal business is conducted, outside the United States, the provisions of this Act shall apply" to such member only in respect of the business of such member conducted in the United States. (c) LIABILITY OF MEMBERS OF SIPC.—Except for such assessments as may be made upon such member pursuant to the provisions of section 4, no member of S I P C shall have any liability under this Act as a member of S I P C for, or in connection with, any act or omission

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