§ 78iii. — Functions of selfregulatory organizations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78iii]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B-1--SECURITIES INVESTOR PROTECTION
Sec. 78iii. Functions of self-regulatory organizations
(a) Collection agent
Each self-regulatory organization shall act as collection agent for
SIPC to collect the assessments payable by all members of SIPC for whom
such self-regulatory organization is the examining authority, unless
SIPC designates a self-regulatory organization other than the examining
authority to act as collection agent for any member of SIPC who is a
member of or participant in more than one self-regulatory organization.
If the only self-regulatory organization of which a member of SIPC is a
member or in which it is a participant is a registered clearing agency
that is not the examining authority for the member, SIPC may,
nevertheless, designate such registered clearing agency as collection
agent for the member or may require that payments be made directly to
SIPC. The collection agent shall be obligated to remit to SIPC
assessments made under section 78ddd of this title only to the extent
that payments of such assessment are received by such collection agent.
Members of SIPC who are not members of or participants in a self-
regulatory organization shall make payments directly to SIPC.
(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
78eee(a)(1) and section 78eee(a)(2) of this title.
(c) Inspections
The self-regulatory organization of which a member of SIPC is a
member or in which it is a participant shall inspect or examine such
member for compliance with applicable financial responsibility rules,
except that--
(1) if the self-regulatory organization is a registered clearing
agency, the Commission may designate itself as responsible for the
examination of such member for compliance with applicable financial
responsibility rules; and
(2) if a member of SIPC is a member of or participant in more
than one self-regulatory organization, the Commission, pursuant to
section 78q(d) of this title, shall designate one of such self-
regulatory organizations or itself as responsible for the
examination of such member for compliance with applicable financial
responsibility rules.
(d) Reports
There shall be filed with SIPC by the self-regulatory organizations
such reports of inspections or examinations of the members of SIPC (or
copies thereof) as may be designated by SIPC 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 SIPC;
(2) that, as nearly as may be practicable, examinations to
ascertain whether members of SIPC are in compliance with applicable
financial responsibility rules will be conducted by the self-
regulatory 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 SIPC will file financial information
with, and be examined by, the self-regulatory organization which is
the examining authority for such member.
(f) Financial condition of members
The Commission may, by such rules as it determines necessary or
appropriate in the public interest and to carry out the purposes of this
chapter, require any self-regulatory organization to furnish SIPC with
reports and records (or copies thereof) relating to the financial
condition of members of or participants in such self-regulatory
organization.
(Pub. L. 91-598, Sec. 13, formerly Sec. 9, Dec. 30, 1970, 84 Stat. 1654;
amended Pub. L. 94-29, Sec. 26, June 4, 1975, 89 Stat. 163; renumbered
Sec. 13 and amended Pub. L. 95-283, Secs. 9, 12, May 21, 1978, 92 Stat.
260, 269.)
References in Text
This chapter, referred to in subsec. (f), was in the original ``this
Act'', meaning Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636. For
complete classification of this Act to the Code, see Tables.
Amendments
1978--Subsec. (a). Pub. L. 95-283, Sec. 12(a), in heading
substituted ``Collection'' for ``Collecting'', and in text inserted
provisions relating to designation of a self-regulatory organization
other than the examining authority to act as collection agent and
provisions relating to designation of a registered clearing agency as
collection agent, and substituted provisions relating to remittances by
the collection agent to SIPC, for provisions relating to remittances by
an examining authority to SIPC.
Subsec. (b). Pub. L. 95-283, Sec. 12(b), inserted reference to
section 78eee(a)(2) of this title.
Subsec. (c). Pub. L. 95-283, Sec. 12(c), revised existing format and
provisions into introductory text and cl. (2) and, as so revised, in
introductory text inserted provisions respecting participation by a
member of SIPC in a self-regulatory organization and in cl. (2) inserted
provisions respecting such participation and authorization for the
Commission to designate itself as responsible for the statutory
examination, and added cl. (1).
Subsec. (f). Pub. L. 95-283, Sec. 12(d), substituted provisions
authorizing the Commission to set out rules requiring self-regulatory
organizations to furnish SIPC with reports and records of members or
participants in such self-regulatory organizations, for provisions
authorizing the Commission to set out rules, and regulations requiring
self-regulatory organizations to adopt rules, practices, and procedures
respecting inspections and examinations of members and examiners, to
furnish SIPC and the Commission with reports and records of members, and
to inspect or examine members.
1975--Subsec. (c). Pub. L. 94-29 directed the Commission to
designate the self-regulatory organization to be responsible for
enforcing applicable rules with respect to any firm which is a member of
more than one self-regulatory organization.
Effective Date of 1975 Amendment
Amendment by Pub. L. 94-29 effective June 4, 1975, see section 31(a)
of Pub. L. 94-29, set out as a note under section 78b of this title.
Section Referred to in Other Sections
This section is referred to in sections 78ddd, 78ggg, 78hhh, 78lll
of this title.
