§ 78w. — Rules, regulations, and orders; annual reports.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78w]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B--SECURITIES EXCHANGES
Sec. 78w. Rules, regulations, and orders; annual reports
(a) Power to make rules and regulations; considerations; public
disclosure
(1) The Commission, the Board of Governors of the Federal Reserve
System, and the other agencies enumerated in section 78c(a)(34) of this
title shall each have power to make such rules and regulations as may be
necessary or appropriate to implement the provisions of this chapter for
which they are responsible or for the execution of the functions vested
in them by this chapter, and may for such purposes classify persons,
securities, transactions, statements, applications, reports, and other
matters within their respective jurisdictions, and prescribe greater,
lesser, or different requirements for different classes thereof. No
provision of this chapter imposing any liability shall apply to any act
done or omitted in good faith in conformity with a rule, regulation, or
order of the Commission, the Board of Governors of the Federal Reserve
System, other agency enumerated in section 78c(a)(34) of this title, or
any self-regulatory organization, notwithstanding that such rule,
regulation, or order may thereafter be amended or rescinded or
determined by judicial or other authority to be invalid for any reason.
(2) The Commission and the Secretary of the Treasury, in making
rules and regulations pursuant to any provisions of this chapter, shall
consider among other matters the impact any such rule or regulation
would have on competition. The Commission and the Secretary of the
Treasury shall not adopt any such rule or regulation which would impose
a burden on competition not necessary or appropriate in furtherance of
the purposes of this chapter. The Commission and the Secretary of the
Treasury shall include in the statement of basis and purpose
incorporated in any rule or regulation adopted under this chapter, the
reasons for the Commission's or the Secretary's determination that any
burden on competition imposed by such rule or regulation is necessary or
appropriate in furtherance of the purposes of this chapter.
(3) The Commission and the Secretary, in making rules and
regulations pursuant to any provision of this chapter, considering any
application for registration in accordance with section 78s(a) of this
title, or reviewing any proposed rule change of a self-regulatory
organization in accordance with section 78s(b) of this title, shall keep
in a public file and make available for copying all written statements
filed with the Commission and the Secretary and all written
communications between the Commission or the Secretary and any person
relating to the proposed rule, regulation, application, or proposed rule
change: Provided, however, That the Commission and the Secretary shall
not be required to keep in a public file or make available for copying
any such statement or communication which it may withhold from the
public in accordance with the provisions of section 552 of title 5.
(b) Omitted
(c) Procedure for adjudication
The Commission, by rule, shall prescribe the procedure applicable to
every case pursuant to this chapter of adjudication (as defined in
section 551 of title 5) not required to be determined on the record
after notice and opportunity for hearing. Such rules shall, as a
minimum, provide that prompt notice shall be given of any adverse action
or final disposition and that such notice and the entry of any order
shall be accompanied by a statement of written reasons.
(d) Cease-and-desist procedures
Within 1 year after October 15, 1990, the Commission shall establish
regulations providing for the expeditious conduct of hearings and
rendering of decisions under section 78u-3 of this title, section 77h-1
of this title, section 80a-9(f) of this title, and section 80b-3(k) of
this title.
(June 6, 1934, ch. 404, title I, Sec. 23, 48 Stat. 901; Aug. 23, 1935,
ch. 614, Sec. 203(a), 49 Stat. 704; May 27, 1936, ch. 462, Sec. 8, 49
Stat. 1379; Pub. L. 88-467, Sec. 10, Aug. 20, 1964, 78 Stat. 580; Pub.
L. 94-29, Sec. 18, June 4, 1975, 89 Stat. 155; Pub. L. 99-571, title I,
Sec. 102(j), Oct. 28, 1986, 100 Stat. 3220; Pub. L. 100-181, title III,
Secs. 324, 325, Dec. 4, 1987, 101 Stat. 1259; Pub. L. 101-429, title II,
Sec. 204, Oct. 15, 1990, 104 Stat. 940; Pub. L. 103-202, title I,
Sec. 107, Dec. 17, 1993, 107 Stat. 2351.)
References in Text
This chapter, referred to in subsecs. (a) and (c), was in the
original ``this title''. See References in Text note set out under
section 78a of this title.
Codification
Subsection (b), which required the Commission, the Board of
Governors of the Federal Reserve System, and other agencies enumerated
in section 78c(a)(34) of this title, to each make an annual report to
Congress on its work for the preceding year, and to include certain
specified information in the reports, terminated, effective May 15,
2000, pursuant to section 3003 of Pub. L. 104-66, as amended, set out as
a note under section 1113 of Title 31, Money and Finance. See, also,
pages 143, 167, 172, and 190 of House Document No. 103-7.
Amendments
1993--Subsec. (b)(4)(C) to (K). Pub. L. 103-202, Sec. 107,
redesignated subpars. (E) to (G) and (I) to (K) as (C) to (E) and (F) to
(H), respectively, added a new subpar. (I), and struck out former
subpars. (C), (D), and (H). Prior to amendment, subpars. (C), (D), and
(H) read as follows:
``(C) beginning in 1975 and ending in 1980, information, data, and
recommendations with respect to the development of a national system for
the prompt and accurate clearance and settlement of securities
transactions, including a summary of the regulatory activities,
operational capabilities, financial resources, and plans of self-
regulatory organizations and registered transfer agents with respect
thereto;
``(D) beginning in 1975 and ending in 1980, a description of the
steps taken, and an evaluation of the progress made, toward the
establishment of a national market system, and recommendations for
further legislation it considers advisable with respect to such system;
``(H) beginning in 1975 and ending in 1980, a description of the
effect the absence of any schedule or fixed rates of commissions,
allowances, discounts, or other fees to be charged by members for
effecting transactions on a national securities exchange is having on
the maintenance of fair and orderly markets and the development of a
national market system for securities;''.
1990--Subsec. (d). Pub. L. 101-429 added subsec. (d).
1987--Subsec. (a)(1). Pub. L. 100-181, Sec. 324(1), inserted ``or''
before ``any self-regulatory organization'' in last sentence.
Subsec. (a)(3). Pub. L. 100-181, Sec. 324(2), inserted ``shall''
after ``section 78s(b) of this title,''.
Subsec. (b)(4)(F). Pub. L. 100-181, Sec. 325, substituted ``the''
for ``The''.
1986--Subsec. (a)(2). Pub. L. 99-571, Sec. 102(j)(1), (2), inserted
``and the Secretary of the Treasury'' in three places and ``or the
Secretary's'' in one place.
Subsec. (a)(3). Pub. L. 99-571, Sec. 102(j)(3), (4), inserted ``and
the Secretary'' in three places and ``or the Secretary'' in one place.
1975--Subsec. (a). Pub. L. 94-29 designated existing provisions as
par. (1), inserted references to other agencies enumerated in section
78c(a)(34) of this title, regulations appropriate to implement the
provisions of this chapter for which the agencies are responsible, the
classification of persons, transactions, statements, applications, and
reports, the prescribing of greater, lesser, or different requirements
for different classifications, and the non-liability of self-regulatory
organization, and added pars. (2) and (3).
Subsec. (b). Pub. L. 94-29 designated existing provisions as par.
(1), substituted ``The Commission, the Board of Governors of the Federal
Reserve System, and the other agencies enumerated in section 78c(a)(34)
of this title, shall each make an annual report to the Congress on its
work for the preceding year, and shall include in each such report
whatever information, data, and recommendations for further legislation
it considers advisable with regard to matters within its respective
jurisdiction under this chapter'' for ``The Commission and the Board of
Governors of the Federal Reserve System, respectively, shall include in
their annual reports to Congress such information, data, and
recommendation for further legislation as they may deem advisable with
regard to matters within their respective jurisdictions under this
chapter. The Commission shall include in its annual reports to the
Congress for the fiscal years ended on June 30 of 1965, 1966, and 1967
information, data, and recommendations specifically related to the
operation of the amendments to this chapter made by the Securities Acts
Amendments of 1964'', and added pars. (2) to (4).
Subsec. (c). Pub. L. 94-29 added subsec. (c).
1964--Subsec. (b). Pub. L. 88-467 required the Commission in its
annual reports to Congress for fiscal years ending June 30, 1965, 1966,
and 1967, to furnish information, data, and recommendations specifically
related to the operations of the amendments to the Securities Exchange
Act of 1934 made by the Securities Act Amendments of 1964.
1936--Subsec. (a). Act May 27, 1936, inserted second sentence.
Change of Name
Section 203(a) of act Aug. 23, 1935, substituted ``Board of
Governors of the Federal Reserve System'' for ``Federal Reserve Board''.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-429 effective Oct. 15, 1990, with
provisions relating to civil penalties and accounting and disgorgement,
see section 1(c)(1), (2) of Pub. L. 101-429, set out in a note under
section 77g of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-571 effective 270 days after Oct. 28, 1986,
see section 401 of Pub. L. 99-571, set out as an Effective Date note
under section 78o-5 of this title.
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.
Effective Date of 1964 Amendment
Amendment by Pub. L. 88-467 effective Aug. 20, 1964, see section 13
of Pub. L. 88-467, set out as a note under section 78c of this title.
Construction of 1993 Amendment
Amendment by Pub. L. 103-202 not to be construed to govern initial
issuance of any public debt obligation or to grant any authority to (or
extend any authority of) the Securities and Exchange Commission, any
appropriate regulatory agency, or a self-regulatory organization to
prescribe any procedure, term, or condition of such initial issuance, to
promulgate any rule or regulation governing such initial issuance, or to
otherwise regulate in any manner such initial issuance, see section 111
of Pub. L. 103-202, set out as a note under section 78o-5 of this title.
Transfer of Functions
For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg. Plan
No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out under section 78d of this title.
Section Referred to in Other Sections
This section is referred to in sections 78c, 78q-2 of this title.
