Securities Investor Protection Act Amendments of 1978

Summary

Securities Investor Protection Act Amendments - Amends the Securities Investor Protection Act of 1970 to exclude from membership in the Securities Investor Protection Corporation (SIPC) those persons whose head office is located, and whose principal business is conducted, outside the United States. Grants additional power to adopt, amend, or repeal rules and bylaws of the Corporation to its Board of Directors. Revises the procedure for the promulgation of rules by the Securities Exchange Commission as filed by the Corporation. Authorizes the Securities Investor Protection Corporation to maintain confirmed lines of credit outside of the balance of its Fund, but allows disbursement of amounts received from such lines of credit as though they were a part of the Fund. Makes changes in the borrowing authority of the Corporation and in the definition of "gross revenues. Authorizes self-regulatory organizations to take such actions in liquidation proceedings instituted by brokers or dealers in securities as they deem appropriate to protect the interests of customers of such broker or dealer. Authorizes a court of competent jurisdiction to issue a protective decree if it finds the debtor to be bankrupt within the meaning of the Bankruptcy Act or not able to comply with financial responsibility rules or regulations. Makes provisions for the appointment and compensation of disinterested third parties as attorneys and trustees for the parties to such actions. Defines the term "disinterested" for the purposes of this Act. Revises the provisions relating to the purposes of liquidation proceedings, and enumerates the powers and duties of the trustee in such proceedings. Makes special provision with respect to customer-related property and the purchase of securities by the trustee. States that, in order to provide for prompt payment and satisfaction of net equities of customers of the debtor, SIPC shall advance to the trustee such moneys as may be required to pay or otherwise satisfy claims for the amount by which the net equity of each customer exceeds his ratable share of customer property but only to the extent that the amount of such excess does not exceed $100,000 for such customer, except in specified circumstances. Provides for a direct payment procedure in lieu of a liquidation proceeding where the SIPC determines that any member has failed or may fail to meet its obligations to its customers and that the aggregate of such obligations to its customers is less than $250,000. Designates each self-regulatory organization (national securities exchange or registered securities organization) as collection agent for SIPC. Makes it unlawful for any member of SPIC who fails to pay an assessment to engage in business as a dealer or broken and for any person to defraud or attempt to defraud the SIPC.

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Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 22 May 1978

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• House receded and concurred with amendment

  summary · EN · 9 May 1978

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• Introduced in House

  summary · EN · 14 July 1977

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