A bill to amend the Securities Exchange Act of 1934 to regulate the transactions of members of national securities exchanges, to amend the Investment Company Act of 1940 and the Investment Advisers Act of 1940 to define certain duties of persons subject to such acts.

Summary

Requires the Securities and Exchange Commission to prescribe such rules and regulations as it deems necessary or appropriate in the public interest or for the protection of investors to prevent trades on the exchange but off the floor by members, directly or indirectly, for their own account, or for the account of any person controlling, controlled by, or under common control with any such member, which do not yield priority, parity, or precedence to public orders and which do not contribute to the maintenance of a fair and orderly market. States that it shall be unlawful for a member of a national securities exchange to affect any transaction on such exchange with or for its own account, the account of any affiliate of such member, or any managed institutional account. Provides that such provisions shall not apply to transactions effected during the following periods: (1) prior to the last date on which any national securities exchange maintains or enforces any rule fixing minimum commission rates with respect to any portion of a transaction in excess of $100,000; (2) for a period of twelve months following such date, if the total value of all such transactions affected by a person who is a member of a national securities exchange does not exceed 20 percent of the total value of all transactions effected by such person on all national securities exchanges during such period; and (3) for a period of twelve months following the period specified in (2) if the total value of all such transactions by such person does not exceed 10 percent of the total value of all transactions effected by such person on all national securities exchanges during such period. Provides that it shall not be deemed unlawful or a breach of fiduciary duty for an investment advisor to cause a registered investment company to pay a commission to a broker for effecting a transaction, which is in excess of commissions charged by other brokers on similar transactions, if such investment advisor determines in good faith that research service provided by such broker for the benefit of such investment company justify such payment. Provides that an investment adviser of a registered investment company, or an affiliated person of such investment adviser, may receive any amount of benefit in connection with a transaction which results in an assignment of an investment advisory contract with such investment company. Provides that, in the event of any such transaction, not more than 25 percent of the directors of the investment company who are interested persons of either party to the transaction shall serve in such office effective at the date of commencement of the new advisory contract. Provides that it shall be unlawful for the directors of a registered investment company, in connection with their evaluation of the terms of any contract whereby a person undertakes regularly to serve or act as investment adviser of such investment company, to take into account the purchase price or other consideration such person may have paid in connection with a transaction within the provisions of this Act.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 18 January 1973

   Introduced

   Referred to Senate Committee on Banking, Housing and Urban Affairs.

   Source: IntroReferral

2. 18 January 1973

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 31 May 1973

   Reported

   Reported to Senate from the Committee on Banking, Housing and Urban Affairs with amendment, S. Rept. 93-187.

   Source: Committee

4. 31 May 1973

   Reported

   Reported to Senate from the Committee on Banking, Housing and Urban Affairs with amendment, S. Rept. 93-187.

   Source: Committee

5. 18 June 1973

   Vote

   Measure passed Senate, amended, roll call #201 (85-3).

   Source: Floor

6. 18 June 1973

   Vote

   Passed/agreed to in Senate: Measure passed Senate, amended, roll call #201 (85-3).

   Source: Floor

7. 19 June 1973

   Introduced

   Referred to House Committee on Interstate and Foreign Commerce.

   Source: IntroReferral

Votes

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

2 official files

• Passed Senate amended

  summary · EN · 18 June 1973

  Open at official source

• Introduced in Senate

  summary · EN · 18 January 1973

  Open at official source

Sponsors

• Sen. Williams, Harrison A., Jr. [D-NJ] · D · Sponsor
• Sen. Bennett, Wallace F. [R-UT] · R · Cosponsor
• Sen. Tower, John G. [R-TX] · R · Cosponsor
• Sen. Brooke, Edward W. [R-MA] · R · Cosponsor
• · hsif00 · Standing
• · ssbk00 · Standing

Related records

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