12 C.F.R. Subpart E—Disciplinary Proceedings Involving the Federal Securities Laws
Title 12 - Banks and Banking
(a) Except as provided in this subpart, subpart A of this part applies to proceedings by the Comptroller to determine whether, pursuant to authority contained in sections 15B(c)(5), 15C(c)(2)(A), 17A(c)(3), and 17A(c)(4)(C) of the Exchange Act (15 U.S.C. 78o–4(c)(5), 78o–5(c)(2)(A), 78q–1(c)(3)(A), and 78q–1(c)(4)(C)), to take disciplinary action against the following: (1) A bank which is a municipal securities dealer, or any person associated or seeking to become associated with such a municipal securities dealer; (2) A bank which is a government securities broker or dealer, or any person associated with such government securities broker or dealer; or (3) A bank which is a transfer agent, or any person associated or seeking to become associated with such transfer agent. (b) In addition to the issuance of disciplinary orders after opportunity for hearing, the Comptroller or the Comptroller's delegate may issue and serve any notices and temporary or permanent cease-and-desist orders and take any actions that are authorized by section 8 of the FDIA (12 U.S.C. 1818), sections 15B(c)(5), 15C(c)(2)(B), and 17A(d)(2) of the Exchange Act, and other subparts of this part against the following: (1) The parties listed in paragraph (a) of this section; and (2) A bank which is a clearing agency. (c) Nothing in this subpart impairs the powers conferred on the Comptroller by other provisions of law. (a) Proceedings are commenced when the Comptroller serves a notice of charges on a bank or associated person. The notice must indicate the type of disciplinary action being contemplated and the grounds therefor, and fix a date, time and place for hearing. The hearing must be set for a date at least 30 days after service of the notice. A party served with a notice of charges may file an answer as prescribed in §19.19. Any party who fails to appear at a hearing personally or by a duly authorized representative shall be deemed to have consented to the issuance of a disciplinary order. (b) All proceedings under this subpart must be commenced, and the notice of charges must be filed, on a public basis, unless otherwise ordered by the Comptroller. Pursuant to §19.33(a), a request for a private hearing may be filed within 20 days of service of the notice. (a) In the event of consent, or if on the record filed by the administrative law judge, the Comptroller finds that any act or omission or violation specified in the notice of charges has been established, the Comptroller may serve on the bank or persons concerned a disciplinary order, as provided in the Exchange Act. The order may: (1) Censure, limit the activities, functions or operations, or suspend or revoke the registration of a bank which is a municipal securities dealer; (2) Censure, suspend or bar any person associated or seeking to become associated with a municipal securities dealer; (3) Censure, limit the activities, functions or operations, or suspend or bar a bank which is a government securities broker or dealer; (4) Censure, limit the activities, functions or operations, or suspend or bar any person associated with a government securities broker or dealer; (5) Deny registration to, limit the activities, functions, or operations or suspend or revoke the registration of a bank which is a transfer agent; or (6) Censure or limit the activities or functions, or suspend or bar, any person associated or seeking to become associated with a transfer agent. (b) A disciplinary order is effective when served on the party or parties involved and remains effective and enforceable until it is stayed, modified, terminated, or set aside by action of the Comptroller or a reviewing court. (a) Stays. The rules adopted by the Securities and Exchange Commission (SEC) pursuant to section 19 of the Securities Exchange Act of 1934 (15 U.S.C. 78s) regarding applications by persons for whom the SEC is the appropriate regulatory agency for stays of disciplinary sanctions or summary suspensions imposed by registered clearing agencies (17 CFR 240.19d–2) apply to applications by national banks. References to the “Commission” are deemed to refer to the “OCC.” (b) Reviews. The regulations adopted by the SEC pursuant to section 19 of the Securities Exchange Act of 1934 (15 U.S.C. 78s) regarding applications by persons for whom the SEC is the appropriate regulatory agency for reviews of final disciplinary sanctions, denials of participation, or prohibitions or limitations of access to services imposed by registered clearing agencies (17 CFR 240.19d–3(a)–(f)) apply to applications by national banks. References to the “Commission” are deemed to refer to the “OCC.” [61 FR 68559, Dec. 30, 1996]
Title 12: Banks and Banking
PART 19—RULES OF PRACTICE AND PROCEDURE
Subpart E—Disciplinary Proceedings Involving the Federal Securities Laws
§ 19.130 Scope.
§ 19.131 Notice of charges and answer.
§ 19.132 Disciplinary orders.
§ 19.135 Applications for stay or review of disciplinary actions imposed by registered clearing agencies.
