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U.S. Code as of:
01/19/04
Section 78iii. Functions of self-regulatory organizations
(a) Collection agent
Each self-regulatory organization shall act as collection agent
for SIPC to collect the assessments payable by all members of SIPC
for whom such self-regulatory organization is the examining
authority, unless SIPC designates a self-regulatory organization
other than the examining authority to act as collection agent for
any member of SIPC who is a member of or participant in more than
one self-regulatory organization. If the only self-regulatory
organization of which a member of SIPC is a member or in which it
is a participant is a registered clearing agency that is not the
examining authority for the member, SIPC may, nevertheless,
designate such registered clearing agency as collection agent for
the member or may require that payments be made directly to SIPC.
The collection agent shall be obligated to remit to SIPC
assessments made under section 78ddd of this title only to the
extent that payments of such assessment are received by such
collection agent. Members of SIPC who are not members of or
participants in a self-regulatory organization shall make payments
directly to SIPC.
(b) Immunity
No self-regulatory organization shall have any liability to any
person for any action taken or omitted in good faith pursuant to
section 78eee(a)(1) and section 78eee(a)(2) of this title.
(c) Inspections
The self-regulatory organization of which a member of SIPC is a
member or in which it is a participant shall inspect or examine
such member for compliance with applicable financial responsibility
rules, except that -
(1) if the self-regulatory organization is a registered
clearing agency, the Commission may designate itself as
responsible for the examination of such member for compliance
with applicable financial responsibility rules; and
(2) if a member of SIPC is a member of or participant in more
than one self-regulatory organization, the Commission, pursuant
to section 78q(d) of this title, shall designate one of such
self-regulatory organizations or itself as responsible for the
examination of such member for compliance with applicable
financial responsibility rules.
(d) Reports
There shall be filed with SIPC by the self-regulatory
organizations such reports of inspections or examinations of the
members of SIPC (or copies thereof) as may be designated by SIPC by
bylaw or rule.
(e) Consultation
SIPC shall consult and cooperate with the self-regulatory
organizations toward the end:
(1) that there may be developed and carried into effect
procedures reasonably designed to detect approaching financial
difficulty upon the part of any member of SIPC;
(2) that, as nearly as may be practicable, examinations to
ascertain whether members of SIPC are in compliance with
applicable financial responsibility rules will be conducted by
the self-regulatory organizations under appropriate standards
(both as to method and scope) and reports of such examinations
will, where appropriate, be standard in form; and
(3) that, as frequently as may be practicable under the
circumstances, each member of SIPC will file financial
information with, and be examined by, the self-regulatory
organization which is the examining authority for such member.
(f) Financial condition of members
The Commission may, by such rules as it determines necessary or
appropriate in the public interest and to carry out the purposes of
this chapter, require any self-regulatory organization to furnish
SIPC with reports and records (or copies thereof) relating to the
financial condition of members of or participants in such
self-regulatory organization.
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