§ 78kkk. — Miscellaneous provisions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78kkk]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B-1--SECURITIES INVESTOR PROTECTION
Sec. 78kkk. Miscellaneous provisions
(a) Public inspection of reports
Any notice, report, or other document filed with SIPC pursuant to
this chapter shall be available for public inspection unless SIPC 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) Liability of members of SIPC
Except for such assessments as may be made upon such member pursuant
to the provisions of section 78ddd of this title, no member of SIPC
shall have any liability under this chapter as a member of SIPC for, or
in connection with, any act or omission of any other broker or dealer
whether in connection with the conduct of the business or affairs of
such broker or dealer or otherwise and, without limiting the generality
of the foregoing, no member shall have any liability for or in respect
of any indebtedness or other liability of SIPC.
(c) Liability of SIPC and Directors, officers, or employees
Neither SIPC nor any of its Directors, officers, or employees shall
have any liability to any person for any action taken or omitted in good
faith under or in connection with any matter contemplated by this
chapter.
(d) Advertising
SIPC shall by bylaw prescribe the manner in which a member of SIPC
may display any sign or signs (or include in any advertisement a
statement) relating to the protection to customers and their accounts,
or any other protections, afforded under this chapter. No member may
display any such sign, or include in an advertisement any such
statement, except in accordance with such bylaws. SIPC may also by bylaw
prescribe such minimal requirements as it considers necessary and
appropriate to require a member of SIPC to provide public notice of its
membership in SIPC.
(e) SIPC exempt from taxation
SIPC, its property, its franchise, capital, reserves, surplus, and
its income, shall be exempt from all taxation now or hereafter imposed
by the United States or by any State or local taxing authority, except
that any real property and any tangible personal property (other than
cash and securities) of SIPC shall be subject to State and local
taxation to the same extent according to its value as other real and
tangible personal property is taxed. Assessments made upon a member of
SIPC shall constitute ordinary and necessary expenses in carrying on the
business of such member for the purpose of section 162(a) of title 26.
The contribution and transfer to SIPC of funds or securities held by any
trust established by a national securities exchange prior to January 1,
1970, for the purpose of providing assistance to customers of members of
such exchange, shall not result in any taxable gain to such trust or
give rise to any taxable income to any member of SIPC under any
provision of title 26, nor shall such contribution or transfer, or any
reduction in assessments made pursuant to this chapter, in any way
affect the status, as ordinary and necessary expenses under section
162(a) of title 26, of any contributions made to such trust by such
exchange at any time prior to such transfer. Upon dissolution of SIPC,
none of its net assets shall inure to the benefit of any of its members.
(f) Section 78t(a) of this title not to apply
The provisions of subsection (a) of section 78t of this title shall
not apply to any liability under or in connection with this chapter.
(g) SEC study of unsafe or unsound practices
Not later than twelve months after December 30, 1970, the Commission
shall compile a list of unsafe or unsound practices by members of SIPC
in conducting their business and report to the Congress (1) the steps
being taken under the authority of existing law to eliminate those
practices and (2) recommendations concerning additional legislation
which may be needed to eliminate those unsafe or unsound practices.
(Pub. L. 91-598, Sec. 15, formerly Sec. 11, Dec. 30, 1970, 84 Stat.
1655; renumbered Sec. 15 and amended Pub. L. 95-283, Secs. 9, 14, May
21, 1978, 92 Stat. 260, 270; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095.)
References in Text
This chapter, referred to in subsecs. (a) to (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
1986--Subsec. (e). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954'' wherever appearing,
which for purposes of codification was translated as ``title 26'' thus
requiring no change in text.
1978--Subsec. (b). Pub. L. 95-283, Sec. 14(c), redesignated subsec.
(c) as (b). Former subsec. (b), relating to application of securities
investor protection provisions to foreign members, was struck out.
Subsec. (c). Pub. L. 95-283, Sec. 14(a), (c), redesignated subsec.
(d) as (c) and inserted ``, officers, or employees'' after ``Directors''
in heading and text. Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 95-283, Sec. 14(b), (c), redesignated subsec.
(e) as (d), inserted provisions authorizing SIPC to prescribe necessary
and proper minimal requirements for providing public notice of
membership by a member of SIPC in SIPC, and struck out provisions
authorizing rules by SIPC to implement advertising requirements. Former
subsec. (d) redesignated (c).
Subsecs. (e) to (h). Pub. L. 95-283, Sec. 14(c), redesignated
subsecs. (e) to (h) as (d) to (g), respectively.
