A bill to amend the Securities Exchange Act of 1934 to provide for the regulation of clearing agencies and transfer agents.

Summary

Provides, under the Securities and Exchange Act, that no broker or dealer shall make use of the mails or of any instrumentality of interstate commerce to effect any transaction in, or induce the purchase or sale of any security (other than an exempted security or commercial paper, bankers' acceptances, or commercial bills) in contravention of such rules and regulations as the Securities Exchange Commission shall prescribe as necessary in the public interest, or for the protection of investors or for the development of an integrated national system for the prompt and accurate processing and settlement of securities transactions to regulate the time and method of making settlements, payments, and deliveries and of opening, maintaining, and closing accounts. Makes it unlawful for any person, directly or indirectly, to make use of the mails or any means or instrumentality of interstate commerce to perform the function of a clearing agency with respect to any security unless it is registered under the Act. Provides that applications for such registration shall contain the rules of such agency together with such other information as the Securities and Exchange Commission may by rule require. Prescribes requirements to be met by clearing agencies for eligibility for registration and rule changes. Provides that if any registered clearing agency takes any disciplinary action against any participant therein, such action shall be subject to review by the appropriate regulatory agency. Sets forth guidelines governing such proceedings, and permits the regulatory agency after full review to suspend the clearing agency for a violation of the Act or any regulations thereunder. Directs the Commission to, on or before December 31, 1976, take such steps as are within its power to bring about the elimination of the negotiable stock certificate as a means of settlement among brokers or dealers of transactions consummated on national securities exchanges or by means of the mails or other means or instrumentalities of interstate commerce. Provides that no person shall make use of the mails or of any means or instrumentality of interstate commerce in order to perform the function of a transfer agency with respect to any security unless such person is registered in accordance with the Act. Sets forth the requirements for such registration. Provides that compliance with the requirements of this part shall be enforced under the Federal Deposit Insurance Act by the appropriate regulatory agencies other than the Securities and Exchange Commission. Authorizes the Commission, after appropriate notice and opportunity for hearing, to censure, bar, suspend, or place limitations upon any transfer agent. Provides that it shall be unlawful for an issuer who is registered under the Act, by use of any means or instrumentality of interstate commerce, or of the mails, to issue any securities whose form or format contravenes such rules and regulations as the Commission may prescribe as necessary or appropriate for the prompt and accurate processing of transactions in such securities. Requires a study and investigation to be made of the practice of registration of securities other than in the name of the beneficial owner and to determine whether such registration is consistent with the policies and purposes of the Securities and Exchanges Act, and if consistent whether steps can be taken to facilitate communications between corporations and their shareholders while at the same time retaining the benefits of such registration. Prohibits a State from taxing the beneficial or record ownership of securities effected through a registered clearing agency unless otherwise taxable by such State if the facilities of such agency were not physically located in the taxing State.

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Documents

2 official files

• Passed Senate amended

  summary · EN · 1 August 1973

  Open at official source

• Introduced in Senate

  summary · EN · 22 June 1973

  Open at official source

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