§ 77s. Special powers of Commission
(a) Rules and regulations
The Commission shall have authority from
time to time to make, amend, and rescind such
rules and regulations as may be necessary to
carry out the provisions of this subchapter, in-
cluding rules and regulations governing reg-
istration statements and prospectuses for var-
ious classes of securities and issuers, and defin-
ing accounting, technical, and trade terms used
in this subchapter. Among other things, the
Commission shall have authority, for the pur-
poses of this subchapter, to prescribe the form
or forms in which required information shall be
set forth, the items or details to be shown in the
balance sheet and earning statement, and the
methods to be followed in the preparation of ac-
counts, in the appraisal or valuation of assets
and liabilities, in the determination of deprecia-
tion and depletion, in the differentiation of re-
curring and nonrecurring income, in the dif-
ferentiation of investment and operating in-
come, and in the preparation, where the Com-
mission deems it necessary or desirable, of con-
solidated balance sheets or income accounts of
any person directly or indirectly controlling or
controlled by the issuer, or any person under di-
rect or indirect common control with the issuer.
The rules and regulations of the Commission
shall be effective upon publication in the man-
ner which the Commission shall prescribe. No
provision of this subchapter imposing any liabil-
ity shall apply to any act done or omitted in
good faith in conformity with any rule or regu-
lation of the Commission, notwithstanding that
such rule or regulation may, after such act or
omission, be amended or rescinded or be deter-
mined by judicial or other authority to be in-
valid for any rea
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Authority boundary: historical or unconfirmed source not current law verified.
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Page 158
TITLE 15—COMMERCE AND TRADE
§ 77s
ties or real estate to the same extent as any ob-
ligation issued by or guaranteed as to principal
and interest by the United States or any agency
or instrumentality thereof. Any State may,
prior to the expiration of seven years after Octo-
ber 3, 1984, enact a statute that specifically re-
fers to this section and requires registration or
qualification of any such security on terms that
differ from those applicable to any obligation
issued by the United States.
(d) Implementation
(1) Limitation
The provisions of subsections (a) and (b) con-
cerning small business related securities shall
not apply with respect to a particular person,
trust, corporation, partnership, association,
business trust, or business entity or class
thereof in any State that, prior to the expira-
tion of 7 years after September 23, 1994, enacts
a statute that specifically refers to this sec-
tion and either prohibits or provides for a
more limited authority to purchase, hold, or
invest in such small business related securi-
ties by any person, trust, corporation, partner-
ship, association, business trust, or business
entity or class thereof than is provided in this
section. The enactment by any State of any
statute of the type described in the preceding
sentence shall not affect the validity of any
contractual commitment to purchase, hold, or
invest that was made prior to such enactment,
and shall not require the sale or other disposi-
tion of any small business related securities
acquired prior to the date of such enactment.
(2) State registration or qualification require-
ments
Any State may, not later than 7 years after
September 23, 1994, enact a statute that spe-
cifically refers to this section and requires
registration or qualification of any small busi-
ness related securities on terms that differ
from those applicable to any obligation issued
by the United States.
(Pub. L. 98–440, title I, § 106, Oct. 3, 1984, 98 Stat.
1691; Pub. L. 103–325, title II, § 207, Sept. 23, 1994,
108 Stat. 2199.)
Editorial Notes
REFERENCES IN TEXT
Section 77d(5) of this title, referred to in subsecs.
(a)(1)(A), (2)(A) and (c), was redesignated section
77d(a)(5) of this title by Pub. L. 112–106, title II,
§ 201(b)(1), (c)(1), Apr. 5, 2012, 126 Stat. 314.
CODIFICATION
Section was enacted as part of the Secondary Mort-
gage Market Enhancement Act of 1984, and not as part
of the Securities Act of 1933, which comprises this sub-
chapter.
AMENDMENTS
1994—Subsec. (a)(1)(B) to (D). Pub. L. 103–325, § 207(a),
struck out ‘‘or’’ at end of subpar. (B), added subpar. (C),
and redesignated former subpar. (C) as (D).
Subsec. (a)(2)(B) to (D). Pub. L. 103–325, § 207(b),
struck out ‘‘or’’ at end of subpar. (B), added subpar. (C),
and redesignated former subpar. (C) as (D).
Subsec. (c). Pub. L. 103–325, § 207(c), in first sentence
substituted ‘‘, that’’ for ‘‘or that’’ before ‘‘are mort-
gage related securities’’ and inserted ‘‘, or that are
small business related securities (as defined in section
78c(a)(53) of this title)’’ before ‘‘shall be exempt’’.
Subsec. (d). Pub. L. 103–325, § 207(d), added subsec. (d).
§ 77s. Special powers of Commission
(a) Rules and regulations
The Commission shall have authority from
time to time to make, amend, and rescind such
rules and regulations as may be necessary to
carry out the provisions of this subchapter, in-
cluding rules and regulations governing reg-
istration statements and prospectuses for var-
ious classes of securities and issuers, and defin-
ing accounting, technical, and trade terms used
in this subchapter. Among other things, the
Commission shall have authority, for the pur-
poses of this subchapter, to prescribe the form
or forms in which required information shall be
set forth, the items or details to be shown in the
balance sheet and earning statement, and the
methods to be followed in the preparation of ac-
counts, in the appraisal or valuation of assets
and liabilities, in the determination of deprecia-
tion and depletion, in the differentiation of re-
curring and nonrecurring income, in the dif-
ferentiation of investment and operating in-
come, and in the preparation, where the Com-
mission deems it necessary or desirable, of con-
solidated balance sheets or income accounts of
any person directly or indirectly controlling or
controlled by the issuer, or any person under di-
rect or indirect common control with the issuer.
The rules and regulations of the Commission
shall be effective upon publication in the man-
ner which the Commission shall prescribe. No
provision of this subchapter imposing any liabil-
ity shall apply to any act done or omitted in
good faith in conformity with any rule or regu-
lation of the Commission, notwithstanding that
such rule or regulation may, after such act or
omission, be amended or rescinded or be deter-
mined by judicial or other authority to be in-
valid for any reason.
(b) Recognition of accounting standards
(1) In general
In carrying out its authority under sub-
section (a) and under section 13(b) of the Secu-
rities Exchange Act of 1934 [15 U.S.C. 78m(b)],
the Commission may recognize, as ‘‘generally
accepted’’ for purposes of the securities laws,
any accounting principles established by a
standard setting body—
(A) that—
(i) is organized as a private entity;
(ii) has, for administrative and oper-
ational purposes, a board of trustees (or
equivalent body) serving in the public in-
terest, the majority of whom are not, con-
current with their service on such board,
and have not been during the 2-year period
preceding such service, associated persons
of any registered public accounting firm;
(iii) is funded as provided in section 7219
of this title;
(iv) has adopted procedures to ensure
prompt consideration, by majority vote of
its members, of changes to accounting
principles necessary to reflect emerging
accounting issues and changing business
practices; and
Page 159
TITLE 15—COMMERCE AND TRADE
§ 77s
(v) considers, in adopting accounting
principles, the need to keep standards cur-
rent in order to reflect changes in the busi-
ness environment, the extent to which
international convergence on high quality
accounting standards is necessary or ap-
propriate in the public interest and for the
protection of investors; and
(B) that the Commission determines has
the capacity to assist the Commission in ful-
filling the requirements of subsection (a)
and section 13(b) of the Securities Exchange
Act of 1934 [15 U.S.C. 78m(b)], because, at a
minimum, the standard setting body is capa-
ble of improving the accuracy and effective-
ness of financial reporting and the protec-
tion of investors under the securities laws.
(2) Annual report
A standard setting body described in para-
graph (1) shall submit an annual report to the
Commission and the public, containing au-
dited financial statements of that standard
setting body.
(c) Production of evidence
For the purpose of all investigations which, in
the opinion of the Commission, are necessary
and proper for the enforcement of this sub-
chapter, any member of the Commission or any
officer or officers designated by it are empow-
ered to administer oaths and affirmations, sub-
pena witnesses, take evidence, and require the
production of any books, papers, or other docu-
ments which the Commission deems relevant or
material to the inquiry. Such attendance of wit-
nesses and the production of such documentary
evidence may be required from any place in the
United States or any Territory at any des-
ignated place of hearing.
(d) Federal and State cooperation
(1) The Commission is authorized to cooperate
with any association composed of duly con-
stituted representatives of State governments
whose primary assignment is the regulation of
the securities business within those States, and
which, in the judgment of the Commission,
could assist in effectuating greater uniformity
in Federal-State securities matters. The Com-
mission shall, at its discretion, cooperate, co-
ordinate, and share information with such an as-
sociation for the purposes of carrying out the
policies and projects set forth in paragraphs (2)
and (3).
(2) It is the declared policy of this subsection
that there should be greater Federal and State
cooperation in securities matters, including—
(A) maximum effectiveness of regulation,
(B) maximum uniformity in Federal and
State regulatory standards,
(C) minimum interference with the business
of capital formation, and
(D) a substantial reduction in costs and pa-
perwork to diminish the burdens of raising in-
vestment capital (particularly by small busi-
ness) and to diminish the costs of the adminis-
tration of the Government programs involved.
(3) The purpose of this subsection is to engen-
der cooperation between the Commission, any
such association of State securities officials,
and other duly constituted securities associa-
tions in the following areas:
(A) the sharing of information regarding the
registration or exemption of securities issues
applied for in the various States;
(B) the development and maintenance of uni-
form securities forms and procedures; and
(C) the development of a uniform exemption
from registration for small issuers which can
be agreed upon among several States or be-
tween the States and the Federal Government.
The Commission shall have the authority to
adopt such an exemption as agreed upon for
Federal purposes. Nothing in this chapter
shall be construed as authorizing preemption
of State law.
(4) In order to carry out these policies and pur-
poses, the Commission shall conduct an annual
conference as well as such other meetings as are
deemed necessary, to which representatives
from such securities associations, securities
self-regulatory organizations, agencies, and pri-
vate organizations involved in capital formation
shall be invited to participate.
(5) For fiscal year 1982, and for each of the
three succeeding fiscal years, there are author-
ized to be appropriated such amounts as may be
necessary and appropriate to carry out the poli-
cies, provisions, and purposes of this subsection.
Any sums so appropriated shall remain available
until expended.
(6) Notwithstanding any other provision of
law, neither the Commission nor any other per-
son shall be required to establish any procedures
not specifically required by the securities laws,
as that term is defined in section 3(a)(47) of the
Securities Exchange Act of 1934 [15 U.S.C.
78c(a)(47)], or by chapter 5 of title 5, in connec-
tion with cooperation, coordination, or con-
sultation with—
(A) any association referred to in paragraph
(1) or (3) or any conference or meeting referred
to in paragraph (4), while such association,
conference, or meeting is carrying out activi-
ties in furtherance of the provisions of this
subsection; or
(B) any forum, agency, or organization, or
group referred to in section 80c–1 of this title,
while such forum, agency, organization, or
group is carrying out activities in furtherance
of the provisions of such section 80c–1.
As used in this paragraph, the terms ‘‘associa-
tion’’,
‘‘conference’’,
‘‘meeting’’,
‘‘forum’’,
‘‘agency’’, ‘‘organization’’, and ‘‘group’’ include
any committee, subgroup, or representative of
such entities.
(e) Evaluation of rules or programs
For the purpose of evaluating any rule or pro-
gram of the Commission issued or carried out
under any provision of the securities laws, as de-
fined in section 3 of the Securities Exchange Act
of 1934 (15 U.S.C. 78c), and the purposes of con-
sidering, proposing, adopting, or engaging in
any such rule or program or developing new
rules or programs, the Commission may—
(1) gather information from and commu-
nicate with investors or other members of the
public;
(2) engage in such temporary investor test-
ing programs as the Commission determines
Page 160
TITLE 15—COMMERCE AND TRADE
§ 77s
are in the public interest or would protect in-
vestors; and
(3) consult with academics and consultants,
as necessary to carry out this subsection.
(f) Rule of construction
For purposes of the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.), any action taken under
subsection (e) shall not be construed to be a col-
lection of information.
(g) Funding for the GASB
(1) In general
The Commission may, subject to the limita-
tions imposed by section 15B of the Securities
Exchange Act of 1934 (15 U.S.C. 78o–4), require
a national securities association registered
under the Securities Exchange Act of 1934 [15
U.S.C. 78a et seq.] to establish—
(A) a reasonable annual accounting sup-
port fee to adequately fund the annual budg-
et of the Governmental Accounting Stand-
ards Board (referred to in this subsection as
the ‘‘GASB’’); and
(B) rules and procedures, in consultation
with
the
principal
organizations
rep-
resenting State governors, legislators, local
elected officials, and State and local finance
officers, to provide for the equitable alloca-
tion, assessment, and collection of the ac-
counting support fee established under sub-
paragraph (A) from the members of the asso-
ciation, and the remittance of all such ac-
counting support fees to the Financial Ac-
counting Foundation.
(2) Annual budget
For purposes of this subsection, the annual
budget of the GASB is the annual budget re-
viewed and approved according to the internal
procedures of the Financial Accounting Foun-
dation.
(3) Use of funds
Any fees or funds collected under this sub-
section shall be used to support the efforts of
the GASB to establish standards of financial
accounting and reporting recognized as gen-
erally accepted accounting principles applica-
ble to State and local governments of the
United States.
(4) Limitation on fee
The annual accounting support fees col-
lected under this subsection for a fiscal year
shall not exceed the recoverable annual budg-
eted expenses of the GASB (which may include
operating
expenses,
capital,
and
accrued
items).
(5) Rules of construction
(A) Fees not public monies
Accounting support fees collected under
this subsection and other receipts of the
GASB shall not be considered public monies
of the United States.
(B) Limitation on authority of the Commis-
sion
Nothing in this subsection shall be con-
strued to—
(i) provide the Commission or any na-
tional securities association direct or indi-
rect oversight of the budget or technical
agenda of the GASB; or
(ii) affect the setting of generally accept-
ed accounting principles by the GASB.
(C) Noninterference with States
Nothing in this subsection shall be con-
strued to impair or limit the authority of a
State or local government to establish ac-
counting and financial reporting standards.
(May 27, 1933, ch. 38, title I, § 19, 48 Stat. 85; June
6, 1934, ch. 404, title II, § 209, 48 Stat. 908; Pub. L.
94–210, title III, § 308(a)(2), Feb. 5, 1976, 90 Stat.
57; Pub. L. 96–477, title V, § 505, Oct. 21, 1980, 94
Stat. 2292; Pub. L. 100–181, title II, § 207, Dec. 4,
1987, 101 Stat. 1252; Pub. L. 107–204, title I,
§ 108(a), July 30, 2002, 116 Stat. 768; Pub. L.
111–203, title IX, §§ 912, 978(a), 985(a)(3), July 21,
2010, 124 Stat. 1824, 1924, 1933.)
Editorial Notes
REFERENCES IN TEXT
The Paperwork Reduction Act, referred to in subsec.
(f), probably means chapter 35 (§ 3501 et seq.) of Title 44,
Public Printing and Documents. See Short Title note
set out under section 3501 of Title 44.
The Securities Exchange Act of 1934, referred to in
subsec. (g)(1), is act June 6, 1934, ch. 404, 48 Stat. 881,
which is classified principally to chapter 2B (§ 78a et
seq.) of this title. For complete classification of this
Act to the Code, see section 78a of this title and Tables.
AMENDMENTS
2010—Subsec. (d)(6)(A). Pub. L. 111–203, § 985(a)(3),
which directed substitution of ‘‘in paragraph (1) or (3)’’
for ‘‘in paragraph (1) of (3)’’, could not be executed be-
cause the phrase ‘‘in paragraph (1) of (3)’’ did not ap-
pear.
Subsecs. (e), (f). Pub. L. 111–203, § 912, added subsecs.
(e) and (f).
Subsec. (g). Pub. L. 111–203, § 978(a), added subsec. (g).
2002—Subsecs. (b) to (d). Pub. L. 107–204 added subsec.
(b) and redesignated former subsecs. (b) and (c) as (c)
and (d), respectively.
1987—Subsec. (c)(6). Pub. L. 100–181 added par. (6).
1980—Subsec. (c). Pub. L. 96–477 added subsec. (c).
1976—Subsec. (a). Pub. L. 94–210 struck out provisions
relating to rules and regulations applicable to any
common carrier subject to the provisions of section 20
of title 49.
1934—Subsec. (a). Act June 6, 1934, inserted ‘‘tech-
nical’’ in first sentence and inserted last sentence.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective 1 day after
July 21, 2010, except as otherwise provided, see section
4 of Pub. L. 111–203, set out as an Effective Date note
under section 5301 of Title 12, Banks and Banking.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–477 effective Jan. 1, 1981,
see section 507 of Pub. L. 96–477, set out as an Effective
Date note under section 80c of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94–210 effective on 60th day
after Feb. 5, 1976, but not applicable to any bona fide of-
fering of a security made by the issuer, or by or
through an underwriter, before such 60th day, see sec-
tion 308(d)(1) of Pub. L. 94–210, set out as a note under
section 77c of this title.
PARITY FOR REGISTERED INDEX-LINKED ANNUITIES
REGARDING REGISTRATION RULES
Pub. L. 117–328, div. AA, title I, § 101, Dec. 29, 2022, 136
Stat. 5528, provided that:
Page 161
TITLE 15—COMMERCE AND TRADE
§ 77s
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COMMISSION.—The term ‘Commission’ means
the Securities and Exchange Commission.
‘‘(2) INVESTMENT COMPANY.—The term ‘investment
company’ has the meaning given the term in section
3 of the Investment Company Act of 1940 (15 U.S.C.
80a–3).
‘‘(3) MARKET VALUE ADJUSTMENT.—The term ‘mar-
ket value adjustment’ means, with respect to a reg-
istered index-linked annuity, after an early with-
drawal or contract discontinuance—
‘‘(A) an adjustment to the value of that annuity
based on calculations using a predetermined for-
mula; or
‘‘(B) a change in interest rates (or other factor, as
determined by the Commission) that apply to that
annuity.
‘‘(4) PURCHASER.—The term ‘purchaser’ means a
purchaser of a registered index-linked annuity.
‘‘(5) REGISTERED INDEX-LINKED ANNUITY.—The term
‘registered index-linked annuity’ means an annuity—
‘‘(A) that is deemed to be a security;
‘‘(B) that is registered with the Commission in ac-
cordance with section 5 of the Securities Act of 1933
(15 U.S.C. 77e);
‘‘(C) that is issued by an insurance company that
is subject to the supervision of—
‘‘(i) the insurance commissioner or bank com-
missioner of any State; or
‘‘(ii) any agency or officer performing like func-
tions as a commissioner described in clause (i);
‘‘(D) that is not issued by an investment com-
pany; and
‘‘(E) the returns of which—
‘‘(i) are based on the performance of a specified
benchmark index or rate (or a registered ex-
change traded fund that seeks to track the per-
formance of a specified benchmark index or rate);
and
‘‘(ii) may be subject to a market value adjust-
ment if amounts are withdrawn before the end of
the period during which that market value ad-
justment applies.
‘‘(6) SECURITY.—The term ‘security’ has the mean-
ing given the term in section 2(a) of the Securities
Act of 1933 (15 U.S.C. 77b(a)).
‘‘(b) RULES.—
‘‘(1) IN GENERAL.—Not later than 180 days after the
date of enactment of this Act [Dec. 29, 2022], the Com-
mission shall propose, and, not later than 18 months
after the date of enactment of this Act, the Commis-
sion shall prepare and finalize, new or amended rules,
as appropriate, to establish a new form in accordance
with paragraph (2) on which an issuer of a registered
index-linked annuity may register that registered
index-linked annuity, subject to conditions the Com-
mission determines appropriate, which may include
requiring the issuer to take the steps described in
section 240.12h–7(e) of title 17, Code of Federal Regu-
lations, or any successor regulation, with respect to
the registered index-linked annuity.
‘‘(2) DESIGN OF FORM.—In developing the form re-
quired to be established under paragraph (1), the
Commission shall—
‘‘(A) design the form to ensure that a purchaser
using the form receives the information necessary
to make knowledgeable decisions, taking into ac-
count—
‘‘(i) the availability of information;
‘‘(ii) the knowledge and sophistication of that
class of purchasers;
‘‘(iii) the complexity of the registered index-
linked annuity; and
‘‘(iv) any other factor the Commission deter-
mines appropriate;
‘‘(B) engage in investor testing; and
‘‘(C) incorporate the results of the testing re-
quired under subparagraph (B) in the design of the
form, with the goal of ensuring that key informa-
tion is conveyed in terms that a purchaser is able
to understand.
‘‘(c) TREATMENT IF RULES NOT PREPARED AND FINAL-
IZED IN A TIMELY MANNER.—
‘‘(1) IN
GENERAL.—If, as of the date that is 18
months after the date of enactment of this Act, the
Commission has failed to prepare and finalize the
rules required under subsection (b)(1), any registered
index-linked annuity may be registered on the form
described in section 239.17b of title 17, Code of Federal
Regulations, or any successor regulation.
‘‘(2) PREPARATION.—A registration described in
paragraph (1) shall be prepared pursuant to applicable
provisions of the form described in that paragraph.
‘‘(3) TERMINATION.—This subsection shall terminate
upon the establishment by the Commission of the
form described in subsection (b).
‘‘(d) RULES OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to—
‘‘(1) limit the authority of the Commission to—
‘‘(A) determine the information to be requested in
the form described in subsection (b); or
‘‘(B) extend the eligibility for the form described
in subsection (b) to a product that is similar to, but
is not, a registered index-linked annuity; or
‘‘(2) preempt any State law, regulation, rule, or
order.’’
STUDY ON MODERNIZATION AND SIMPLIFICATION OF
REGULATION S–K
Pub. L. 114–94, div. G, title LXXII, § 72003, Dec. 4, 2015,
129 Stat. 1785, provided that:
‘‘(a) STUDY.—The Securities and Exchange Commis-
sion shall carry out a study of the requirements con-
tained in regulation S–K (17 CFR 229.10 et seq.). Such
study shall—
‘‘(1) determine how best to modernize and simplify
such requirements in a manner that reduces the costs
and burdens on issuers while still providing all mate-
rial information;
‘‘(2) emphasize a company by company approach
that allows relevant and material information to be
disseminated to investors without boilerplate lan-
guage or static requirements while preserving com-
pleteness and comparability of information across
registrants; and
‘‘(3) evaluate methods of information delivery and
presentation and explore methods for discouraging
repetition and the disclosure of immaterial informa-
tion.
‘‘(b) CONSULTATION.—In conducting the study re-
quired under subsection (a), the Commission shall con-
sult with the Investor Advisory Committee and the Ad-
visory Committee on Small and Emerging Companies.
‘‘(c) REPORT.—Not later than the end of the 360-day
period beginning on the date of enactment of this Act
[Dec. 4, 2015], the Commission shall issue a report to
the Congress containing—
‘‘(1) all findings and determinations made in car-
rying out the study required under subsection (a);
‘‘(2) specific and detailed recommendations on mod-
ernizing and simplifying the requirements in regula-
tion S–K in a manner that reduces the costs and bur-
dens on companies while still providing all material
information; and
‘‘(3) specific and detailed recommendations on ways
to improve the readability and navigability of disclo-
sure documents and to discourage repetition and the
disclosure of immaterial information.
‘‘(d) RULEMAKING.—Not later than the end of the 360-
day period beginning on the date that the report is
issued to the Congress under subsection (c), the Com-
mission shall issue a proposed rule to implement the
recommendations of the report issued under subsection
(c).
‘‘(e) RULE OF CONSTRUCTION.—Revisions made to regu-
lation S–K by the Commission under section 202 [prob-
ably means section 72002 of Pub. L. 114–94, set out as a
note under section 77g of this title] shall not be con-
strued as satisfying the rulemaking requirements
under this section.’’
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TITLE 15—COMMERCE AND TRADE
§ 77t
Executive Documents
TRANSFER OF FUNCTIONS
For transfer of functions of Securities and Exchange
Commission, with certain exceptions, to Chairman of
such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2,
eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under
section 78d of this title.
§ 77t. Injunctions and prosecution of offenses
(a) Investigation of violations
Whenever it shall appear to the Commission,
either upon complaint or otherwise, that the
provisions of this subchapter, or of any rule or
regulation prescribed under authority thereof,
have been or are about to be violated, it may, in
its discretion, either require or permit such per-
son to file with it a statement in writing, under
oath, or otherwise, as to all the facts and cir-
cumstances
concerning
the
subject
matter
which it believes to be in the public interest to
investigate, and may investigate such facts.
(b) Action for injunction or criminal prosecution
in district court
Whenever it shall appear to the Commission
that any person is engaged or about to engage in
any acts or practices which constitute or will
constitute a violation of the provisions of this
subchapter, or of any rule or regulation pre-
scribed under authority thereof, the Commission
may, in its discretion, bring an action in any
district court of the United States, or United
States court of any Territory, to enjoin such
acts or practices, and upon a proper showing, a
permanent or temporary injunction or restrain-
ing order shall be granted without bond. The
Commission may transmit such evidence as may
be available concerning such acts or practices to
the Attorney General who may, in his discre-
tion, institute the necessary criminal pro-
ceedings under this subchapter. Any such crimi-
nal proceeding may be brought either in the dis-
trict wherein the transmittal of the prospectus
or security complained of begins, or in the dis-
trict wherein such prospectus or security is re-
ceived.
(c) Writ of mandamus
Upon application of the Commission, the dis-
trict courts of the United States and the United
States courts of any Territory shall have juris-
diction to issue writs of mandamus commanding
any person to comply with the provisions of this
subchapter or any order of the Commission
made in pursuance thereof.
(d) Money penalties in civil actions
(1) Authority of Commission
Whenever it shall appear to the Commission
that any person has violated any provision of
this subchapter, the rules or regulations there-
under, or a cease-and-desist order entered by
the Commission pursuant to section 77h–1 of
this title, other than by committing a viola-
tion subject to a penalty pursuant to section
78u–1 of this title, the Commission may bring
an action in a United States district court to
seek, and the court shall have jurisdiction to
impose, upon a proper showing, a civil penalty
to be paid by the person who committed such
violation.
(2) Amount of penalty
(A) First tier
The amount of the penalty shall be deter-
mined by the court in light of the facts and
circumstances.
For
each
violation,
the
amount of the penalty shall not exceed the
greater of (i) $5,000 for a natural person or
$50,000 for any other person, or (ii) the gross
amount of pecuniary gain to such defendant
as a result of the violation.
(B) Second tier
Notwithstanding subparagraph (A), the
amount of penalty for each such violation
shall not exceed the greater of (i) $50,000 for
a natural person or $250,000 for any other
person, or (ii) the gross amount of pecuniary
gain to such defendant as a result of the vio-
lation, if the violation described in para-
graph (1) involved fraud, deceit, manipula-
tion, or deliberate or reckless disregard of a
regulatory requirement.
(C) Third tier
Notwithstanding subparagraphs (A) and
(B), the amount of penalty for each such vio-
lation shall not exceed the greater of (i)
$100,000 for a natural person or $500,000 for
any other person, or (ii) the gross amount of
pecuniary gain to such defendant as a result
of the violation, if—
(I) the violation described in paragraph
(1) involved fraud, deceit, manipulation, or
deliberate or reckless disregard of a regu-
latory requirement; and
(II) such violation directly or indirectly
resulted in substantial losses or created a
significant risk of substantial losses to
other persons.
(3) Procedures for collection
(A) Payment of penalty to Treasury
A penalty imposed under this section shall
be payable into the Treasury of the United
States, except as otherwise provided in sec-
tion 7246 of this title and section 78u–6 of
this title.
(B) Collection of penalties
If a person upon whom such a penalty is
imposed shall fail to pay such penalty with-
in the time prescribed in the court’s order,
the Commission may refer the matter to the
Attorney General who shall recover such
penalty by action in the appropriate United
States district court.
(C) Remedy not exclusive
The actions authorized by this subsection
may be brought in addition to any other ac-
tion that the Commission or the Attorney
General is entitled to bring.
(D) Jurisdiction and venue
For purposes of section 77v of this title, ac-
tions under this section shall be actions to
enforce a liability or a duty created by this
subchapter.
(4) Special provisions relating to a violation of
a cease-and-desist order
In an action to enforce a cease-and-desist
order entered by the Commission pursuant to
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Rules and regulations** The Commission shall have authority from time to time to make, amend, and rescind such rules and regulations as may be necessary to carry out the provisions of this subchapter, including rules and regulations governing registration statements and prospectuses for various classes of securities and issuers, and defining accounting, technical, and trade terms used in this subchapter. Among other things, the Commission shall have authority, for the purposes of this subchapter, to prescribe the form or forms in which required information shall be set forth, the items or details to be shown in the balance sheet and earning statement, and the methods to be followed in the preparation of accounts, in the appraisal or valuation of assets and liabilities, in the determination of depreciation and depletion, in the differentiation of recurring and nonrecurring income, in the differentiation of investment and operating income, and in the preparation, where the Commission deems it necessary or desirable, of consolidated balance sheets or income accounts of any person directly or indirectly controlling or controlled by the issuer, or any person under direct or indirect common control with the issuer. The rules and regulations of the Commission shall be effective upon publication in the manner which the Commission shall prescribe. No provision of this subchapter imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the Commission, notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.
**(b) Recognition of accounting standards**
(1) **In general** — In carrying out i
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 78a. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 78a. Short title
This chapter may be cited as the ‘‘Securities
Exchange Act of 1934.’’
(June 6, 1934, ch. 404, title I, § 1, 48 Stat. 881.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
‘‘This Act’’ meaning the Securities Exchange Act of
1934, act June 6, 1934, ch. 404. The act was divided into
two titles as follows: ‘‘Title I—Regulation of Securities
Exchanges’’ and ‘‘Title II—Amendments to Securities
Act of 1933.’’ This section was section 1 of title I of the
Act, which title, as amended, is set out as sections 78a
to 78d–5, 78e to 78l, 78m, 78m–1, 78n to 78o, 78o–3, 78o–4,
78o–5 to 78o–7, 78o–10 to 78u–6, 78v to 78dd–1, 78ee to 78hh,
78mm, and 78pp to 78rr of this title. Sections 78kk, 78ll,
78nn, 78oo, and 78rr of this title, which were directed to
be added at the end of the Securities Exchange Act of
1934, have been treated in the Code as added to title I
of the Act to reflect the probable intent of Congress.
See Codification notes set out under those sections.
Title II of the act amended or repealed sections 77b, 77c,
77d, 77e, 77j, 77k, 77m, 77o, and 77s of this title, and
added former sections 78ii and 78jj of this title. For
complete classification of this Act to the Code, see Ta-
bles.
Statutory Notes and Related Subsidiaries
SHORT TITLE 2022 AMENDMENT
Pub. L. 117–263, div. E, title LVIII, § 5801, Dec. 23, 2022,
136 Stat. 3421, provided that: ‘‘This title [enacting sec-
tions 77z–4 and 78rr of this title and sections 14a, 253,
1772e, 1772f, 1831cc, 1831dd, 4527, 4528, 5334, 5335, 5498, and
5499 of Title 12, Banks and Banking, amending sections
77g, 78d, 78m, 78n, 78o–3, 78o–4, 78o–7, 80a–8, 80a–29, and
80b–4 of this title and sections 1467a, 1844, 5361, and 5468
of Title 12, enacting
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 78a. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** When used in this chapter, unless the context otherwise requires—
(1) The term “exchange” means any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange as that term is generally understood, and includes the market place and the market facilities maintained by such exchange.
(2) The term “facility” when used with respect to an exchange includes its premises, tangible or intangible property whether on the premises or not, any right to the use of such premises or property or any service thereof for the purpose of effecting or reporting a transaction on an exchange (including, among other things, any system of communication to or from the exchange, by ticker or otherwise, maintained by or with the consent of the exchange), and any right of the exchange to the use of any property or service.
(3)
(A) The term “member” when used with respect to a national securities exchange means (i) any natural person permitted to effect transactions on the floor of the exchange without the services of another person acting as broker, (ii) any registered broker or dealer with which such a natural person is associated, (iii) any registered broker or dealer permitted to designate as a representative such a natural person, and (iv) any other registered broker or dealer which agrees to be regulated by such exchange and with respect to which the exchange undertakes to enforce compliance with the provisions of this chapter, the rules and regulations thereunder, and its own rules. For purposes of section
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 78c. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 78c. Definitions and application
(a) Definitions
When used in this chapter, unless the context
otherwise requires—
(1) The term ‘‘exchange’’ means any organi-
zation, association, or group of persons,
whether
incorporated
or
unincorporated,
which constitutes, maintains, or provides a
market place or facilities for bringing to-
gether purchasers and sellers of securities or
for otherwise performing with respect to secu-
rities the functions commonly performed by a
stock exchange as that term is generally un-
derstood, and includes the market place and
the market facilities maintained by such ex-
change.
(2) The term ‘‘facility’’ when used with re-
spect to an exchange includes its premises,
tangible or intangible property whether on the
premises or not, any right to the use of such
premises or property or any service thereof for
the purpose of effecting or reporting a trans-
action on an exchange (including, among other
things, any system of communication to or
from the exchange, by ticker or otherwise,
maintained by or with the consent of the ex-
change), and any right of the exchange to the
use of any property or service.
(3)(A) The term ‘‘member’’ when used with
respect to a national securities exchange
means (i) any natural person permitted to ef-
fect transactions on the floor of the exchange
without the services of another person acting
as broker, (ii) any registered broker or dealer
with which such a natural person is associ-
ated, (iii) any registered broker or dealer per-
mitted to designate as a representative such a
natural person, and (iv) any other registered
broker or dealer which agrees to be regulated
by such exchange and with respect to which
the exchange undertakes to enforce compli-
ance with the provisions of this cha
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 78c. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Reports by issuer of security; contents** Every issuer of a security registered pursuant to section 78l of this title shall file with the Commission, in accordance with such rules and regulations as the Commission may prescribe as necessary or appropriate for the proper protection of investors and to insure fair dealing in the security—
(1) such information and documents (and such copies thereof) as the Commission shall require to keep reasonably current the information and documents required to be included in or filed with an application or registration statement filed pursuant to section 78l of this title, except that the Commission may not require the filing of any material contract wholly executed before July 1, 1962.
(2) such annual reports (and such copies thereof), certified if required by the rules and regulations of the Commission by independent public accountants, and such quarterly reports (and such copies thereof), as the Commission may prescribe.
Every issuer of a security registered on a national securities exchange shall also file a duplicate original of such information, documents, and reports with the exchange. In any registration statement, periodic report, or other reports to be filed with the Commission, an emerging growth company need not present selected financial data in accordance with section 229.301 of title 17, Code of Federal Regulations, for any period prior to the earliest audited period presented in connection with its first registration statement that became effective under this chapter or the Securities Act of 1933 [[15 U.S.C. 77a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section77a&num=0&edition=prelim) et seq.] and, with respect to any such statement or reports, an emerging growth company may not be
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 78m. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 78m. Periodical and other reports
(a) Reports by issuer of security; contents
Every issuer of a security registered pursuant
to section 78l of this title shall file with the
Commission, in accordance with such rules and
regulations as the Commission may prescribe as
necessary or appropriate for the proper protec-
tion of investors and to insure fair dealing in
the security—
Page 293
TITLE 15—COMMERCE AND TRADE
§ 78m
(1) such information and documents (and
such copies thereof) as the Commission shall
require to keep reasonably current the infor-
mation and documents required to be included
in or filed with an application or registration
statement filed pursuant to section 78l of this
title, except that the Commission may not re-
quire the filing of any material contract whol-
ly executed before July 1, 1962.
(2) such annual reports (and such copies
thereof), certified if required by the rules and
regulations of the Commission by independent
public accountants, and such quarterly reports
(and such copies thereof), as the Commission
may prescribe.
Every issuer of a security registered on a na-
tional securities exchange shall also file a dupli-
cate original of such information, documents,
and reports with the exchange. In any registra-
tion statement, periodic report, or other reports
to be filed with the Commission, an emerging
growth company need not present selected fi-
nancial data in accordance with section 229.301
of title 17, Code of Federal Regulations, for any
period prior to the earliest audited period pre-
sented in connection with its first registration
statement that became effective under this
chapter or the Securities Act of 1933 [15 U.S.C.
77a et seq.] and, with respect to any such state-
ment or reports, an emerging growth c
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 78m. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Registration of all persons utilizing exchange facilities to effect transactions; exemptions**
(1) It shall be unlawful for any broker or dealer which is either a person other than a natural person or a natural person not associated with a broker or dealer which is a person other than a natural person (other than such a broker or dealer whose business is exclusively intrastate and who does not make use of any facility of a national securities exchange) to make use of the mails or any means or instrumentality of interstate commerce to effect any transactions in, or to induce or attempt to induce the purchase or sale of, any security (other than an exempted security or commercial paper, bankers’ acceptances, or commercial bills) unless such broker or dealer is registered in accordance with subsection (b) of this section.
(2) The Commission, by rule or order, as it deems consistent with the public interest and the protection of investors, may conditionally or unconditionally exempt from paragraph (1) of this subsection any broker or dealer or class of brokers or dealers specified in such rule or order.
**(b) Manner of registration of brokers and dealers**
(1) A broker or dealer may be registered by filing with the Commission an application for registration in such form and containing such information and documents concerning such broker or dealer and any persons associated with such broker or dealer as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors. Within forty-five days of the date of the filing of such application (or within such longer period as to which the applicant consents), the Commission shall—
(A) by order grant registration, or
(B) institute proceedings to determine wh
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 78o. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 78o. Registration and regulation of brokers and
dealers
(a) Registration of all persons utilizing exchange
facilities to effect transactions; exemptions
(1) It shall be unlawful for any broker or deal-
er which is either a person other than a natural
person or a natural person not associated with a
broker or dealer which is a person other than a
natural person (other than such a broker or
dealer whose business is exclusively intrastate
and who does not make use of any facility of a
national securities exchange) to make use of the
mails or any means or instrumentality of inter-
state commerce to effect any transactions in, or
to induce or attempt to induce the purchase or
sale of, any security (other than an exempted se-
curity or commercial paper, bankers’ accept-
ances, or commercial bills) unless such broker
or dealer is registered in accordance with sub-
section (b) of this section.
(2) The Commission, by rule or order, as it
deems consistent with the public interest and
the protection of investors, may conditionally
or unconditionally exempt from paragraph (1) of
this subsection any broker or dealer or class of
brokers or dealers specified in such rule or
order.
(b) Manner of registration of brokers and dealers
(1) A broker or dealer may be registered by fil-
ing with the Commission an application for reg-
istration in such form and containing such in-
formation
and
documents
concerning
such
broker or dealer and any persons associated with
such broker or dealer as the Commission, by
rule, may prescribe as necessary or appropriate
in the public interest or for the protection of in-
vestors. Within forty-five days of the date of the
filing of such application (or within such longer
period as to which the applicant consents), the
Co
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 78o. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
The purposes of this subchapter are to—
(1) minimize the paperwork burden for individuals, small businesses, educational and nonprofit institutions, Federal contractors, State, local and tribal governments, and other persons resulting from the collection of information by or for the Federal Government;
(2) ensure the greatest possible public benefit from and maximize the utility of information created, collected, maintained, used, shared and disseminated by or for the Federal Government;
(3) coordinate, integrate, and to the extent practicable and appropriate, make uniform Federal information resources management policies and practices as a means to improve the productivity, efficiency, and effectiveness of Government programs, including the reduction of information collection burdens on the public and the improvement of service delivery to the public;
(4) improve the quality and use of Federal information to strengthen decisionmaking, accountability, and openness in Government and society;
(5) minimize the cost to the Federal Government of the creation, collection, maintenance, use, dissemination, and disposition of information;
(6) strengthen the partnership between the Federal Government and State, local, and tribal governments by minimizing the burden and maximizing the utility of information created, collected, maintained, used, disseminated, and retained by or for the Federal Government;
(7) provide for the dissemination of public information on a timely basis, on equitable terms, and in a manner that promotes the utility of the information to the public and makes effective use of information technology;
(8) ensure that the creation, collection, maintenance, use, dissemination, and disposition of information by or for the Federal Government is consistent w
Stored review status: release_metadata_unconfirmed. The source passage cites 44 U.S.C. § 3501. This identifies an authority to review, not proof of applicability.