Page:United States Statutes at Large Volume 89.djvu/227

 PUBLIC LAW 94-29—JUNE 4, 1975

89 STAT. 167

ment adviser and a statement as to Avhether a substantial part of the business of such investment adviser, consists or is to consist of rendering investment supervisory services. "(2) Within forty-five days of the date of the filing of such application (or within such longer period as to which the applicant consents) the Commission shall— " (A) by order grant such registration; or "(B) institute proceedings to determine whether registration should be denied. Such proceedings shall include notice of the Notice and grounds for denial under consideration and opportunity for hear- hearing. ing and shall be concluded within one hundred twenty days of the date of the filing of the application for registration. At the conclusion of such proceedings the Commission, by order, shall grant or deny such registration. The Commission may extend the time for conclusion of such proceedings for up to ninety days if it finds good cause for such extension and publishes its reasons for so finding or for such longer period as to which the applicant consents. The Commission shall grant such registration if the Commission finds that the requirements of this section are satisfied. The Commission shall deny such registration if it does not make such a finding or if it finds that if the applicant were so registered, its registration would Censure or be subject to suspension or revocation under subsection (e) of this revocation of registration. section.". (2) Subsection (e) of section 203 thereof, is amended to read as 15 USC 80b-3. follows: "(e) The Commission, by order, shall censure, place limitations on the activities, functions, or operations of, suspend for a period not exceeding twelve months, or revoke the registration of any investment adviser if it finds, on the record after notice and opportunity for hear- Notice and ing, that such censure, placing of limitations, suspension, or revoca- hearing. tion 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 so associated— " (1) has willfully made or caused to be made in any application for registration or report required to be 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 light of the circumstances under which it was made false or misleading with respect to any material fact, or has omitted to state in any such application or report any material fact which is required to be stated therein. "(2) has been convicted within ten years preceding the filing of any application for registration or at any time thereafter of any felony or misdemeanor which the Commission finds— "(A) involves the purchase or sale of any security, the taking of a false oath, the making of a false report, bribery, perjury, burglary, or conspiracy to commit any such offense; "(B) arises out of the conduct of the business of a broker, dealer, municipal securities dealer, investment adviser, bank, insurance company, or fiduciary; "(C) involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds or securities; or "(D) involves the violation of section 152, 1341, 1342, or 18 USC 471 et 1343 or chapter 25 or 47 of title 18, United States Code. "(3) is permanently or temporarily enjoined by order, judg- seq., 1001 et seq. ment, or decree of any court of competent jurisdiction from acting

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