Page:United States Statutes at Large Volume 94 Part 2.djvu/577

 94 STAT. 1855

PUBLIC LAW 96-433—OCT. 10, 1980

Public Law 96- 433 96th Congress An Act To amend the Securities Investor Protection Act to increase the amount of protection available under such Act to customers of brokers and dealers, and to provide for the applicability of the Right to Financial Privacy Act of 1978 to the Securities and Exchange Commission.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, AMENDMENTS TO THE SECURITIES INVESTOR PROTECTION ACT

1. Section 9(a) of the Securities Investor Protection Act (15 U.S.C. 78fff-3(a)) is amended— (1) by striking out "$100,000" and inserting in lieu thereof "$500,000"; and (2) in paragraph (1), by striking out "$40,000" and inserting in lieu thereof'^$100,000". SECTION

AMENDMENT TO THE R I G H T TO F I N A N C I A L PRIVACY ACT OF

Oct. 10, 1980 [H.R. 7939]

Brokers and dealers' customers, increased protection; financial privacy, applicability to SEC.

1978

SEC. 2. Section 1122 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3422) is amended to read as follows: "SECURITIES AND EXCHANGE COMMISSION

"SEC. 1122. Except as provided in the Securities Exchange Act of 1934, this Act shall apply with respect to the Securities and Exchange 15 USC 78a. Commission.". AMENDMENT TO THE SECURITIES EXCHANGE ACT OF 1934

SEC. 3. Section 21 of the Securities Exchange Act of 1934 (15 U.S.C. 78u) is amended by adding at the end thereof the following: "(h)(1) The Right to Financial Privacy Act of 1978 shall apply with respect to the Commission, except as otherwise provided in this subsection. "(2) Notwithstanding section 1105 or 1107 of the Right to Financial Privacy Act of 1978, the Commission may have access to and obtain copies of, or the information contained in financial records of a customer from a financial institution without prior notice to the customer upon an ex parte showing to an appropriate United States district court that the Commission seeks such financial records pursuant to a subpena issued in conformity with the requirements of section 19(b) of the Securities Act of 1933, section 21(b) of the Securities Exchange Act of 1934, section 18(c) of the Public Utility Holding Company Act of 1935, section 42(b) of the Investment Company Act of 1940, or section 209(b) of the Investment Advisers Act of 1940, and that the Commission has reason to believe that— "(A) delay in obtaining access to such financial records, or the required notice, will result in— "(i) flight from prosecution;

79-194

O—81—pt. 2

37: QL3

12 USC 3401 note. Records, access. 12 USC 3405, 3407.

15 USC 77s. 15 USC 78u. 15 USC 79r. 15 USC 80a-41. 15 USC 80b-9.

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