Securities Acts Amendments of 1975

Summary

Securities Acts Amendments - Permits exchanges to be registered as national securities exchanges under the requirements of this Act by filing appropriate registration forms with the Securities and Exchange Commission. Sets forth prerequisites to such registration, including the ability of an exchange to enforce compliance by its members with the provisions of this Act. Allows a national securities exchange to deny membership to any registered broker or dealer who is subject to an order of the Commission denying or suspending his broker or dealer's registration, or who does not meet standards of financial responsibility or standards of training and experience. Extends such standards to persons associated with members. Provides for a procedure of discipline for exchange members and their associates. Prohibits any national securities exchange from imposing any schedule or fixing rates of commissions or other charges for trading on such exchange, except pursuant to a rule of the exchange approved by the Commission. Prohibits exchange members from effecting any transaction for any account in which they have a financial interest, with specified exceptions. Directs the Commission to establish a national market system for securities qualified for trading in such a system. Requires such system to include a system for composite reporting of all transactions, a system for the composite display of quotations, equal regulation of markets for such securities and of the members, brokers and dealers effecting transactions in such securities. Prohibits use of the mails or of any means of interstate commerce by a securities information processor unless such person is registered in accordance with this Act. Prohibits national securities exchanges, members, registered securities associations, securities information processors, brokers, or dealers from using the mails or interstate commerce to collect, process, distribute, or publish information regarding transactions of securities in violation of rules and regulations of the Commission for the protection of investors. Authorizes the Commission to prohibit brokers and dealers from effecting transactions in specified securities except through a national securities exchange. Permits the Commission to suspend registration of or trading in securities the issuer of which has failed to comply with provisions of this Act; and, with the approval of the President, to suspend trading on an exchange. Lists items of information which institutional investment managers must submit to the Commission, and which the Commission must make public. Makes it unlawful for any broker or dealer to make use of a national securities exchange, the mails, or interstate commerce to effect any transaction unless they are registered in accordance with this Act. Sets forth procedures for such registration and for disciplining of brokers and dealers. Describes conditions which will necessitate disciplinary action, including fraudulent registration with the Commision and conviction of specified crimes. Provides for disciplining of persons associated with brokers and dealers. Requires brokers and dealers to meet standards of operational capability and of training and experience. Prohibits brokers and dealers from engaging in fraudulent, deceptive or manipulative practices and violations of Commission rules designed to protect investors and expedite the national market system. Permits an association of brokers and dealers to register as a national securities association pursuant to this Act. Prescribes conditions to be met before an association may register, including ability to enforce compliance by its members with the provisions of this Act, the eligibility of any registered broker or dealer to become a member, and the adoption of rules designed to prevent fraudulent and manipulative practices. Stipulates those to whom an association may deny membership, including those under expulsion or suspension. Sets forth procedures for the disciplining of association members, including notification and hearing for the members. Sets forth the conditions of denial and suspension of membership. Makes it unlawful for any municipal securities dealer to use the mails or interstate commerce to effect any transcation unless such dealer is registered in accordance with this Act. Directs the Commission to establish a Municipal Securities Rulemaking Board to propose and adopt rules to accomplish the purposes of this Act regarding transactions in municipal securities. Requires the Board's rules to include specified minimum requirements, establish fair procedures for the nomination and election of members of the Board, be designed to prevent fraudulent and manipulative practices, and prescribe the records to be kept by municipal securities brokers and dealers. Permits the Commission to censure, limit, suspend from transacting, or revoke the registration of brokers and dealers in municipal securities. Sets forth procedures for such actions. Authorizes the National Association of Securities Dealers, Inc., and the appropriate regulatory agency (for nonmembers of an association) to conduct periodic examinations of municipal securities dealers. Prescribes specified recordkeeping of exchanges, brokers, dealers, members, association, information processors, clearing agencies, and transfer agents, including where the Commission is not the appropriate regulatory agency for such an entity. Allows the Commission to authorize self-regulatory agencies to examine members for compliance with this Act and to enforce this Act. Directs the Commission to establish a national system for the clearance and settlement of transactions in securities. Makes it unlawful to use the mails or interstate commerce to perform the functions of a clearing agency unless registered in accordance with this Act. Sets forth the conditions to be met by such agencies in order to be registered under this Act, including operational capabilities and ability to enforce complaince with this Act by participants. Details the procedures governing disciplining of clearing agency participants, including notification and a hearing. Sets forth the conditions under which a person may be registered as a transfer agent by registering with the appropriate regulatory agency. Requires clearing agencies and transfer agents to comply with rules and regulations of the Commission and of the appropriate regulatory agencies. Sets forth the requirements and procedures relating to approval by the Commission of rule changes by self-regulatory organizations, including standards to be enforced regarding approval or disapproval. Sets forth similar items relating to self-regulatory organizations for which the Commission is not the appropriate regulatory agency. Permits the Commission by rule, to abrogate, add to, or delete from the rules of self-regulatory organizations. Requires such organizations to file notice of final disciplinary action upon any members with the appropriate regulatory agency, which may review such action, and, after appropriate procedures, cancel or reduce such action. Empowers the appropriate regulatory agencies to suspend the registration of, to censure, or impose limitations on self-regulatory organizations. Sets forth additional disciplinary procedures which may be taken by such agencies toward self-regulatory organizations. Authorizes the Commission to make necessary investigations to determine whether any person has violated this Act. Empowers the Commission to bring appropriate actions in federal district court upon the discovery of past, present, or threatened violations of this Act. Requires the Commission to consider the effect upon competition of any rules or regulations promulgated under this Act. Provides for public inspection of records and documents arising pursuant to this Act. Allows judicial review of orders and rules of the Commission adverse to parties under this Act, provided the Commission has been petitioned first. Requires national securities exchanges to pay to the Commission by March 15 of each year a registration fee for the privilege of doing business. Establishes requirements regarding amounts or benefits accruing to investment advisers in connection with a sale of securities.

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

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

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

Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 4 June 1975

  ViewDownloadOpen at official source

• Conference report filed in House

  summary · EN · 19 May 1975

  Open at official source

• Introduced in Senate

  summary · EN · 17 January 1975

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.