15 U.S.C. § 78d–9 — Report on oversight of national securities associations

submitted 16 years ago by Pub. L. 111-203 to r/title-15-COMMERCE-AND-TRADE · 410 words · no verdicts yet

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Every three years, the Comptroller General must report to Congress on how well the SEC oversees national securities associations — covering things like governance, exams, executive pay, arbitration, advertising review, funding, and rule effectiveness — with the SEC covering the cost.

(a) Report required. Starting 2 years after July 21, 2010, and every 3 years after that, the Comptroller General must send the Senate Banking Committee and House Financial Services Committee a report evaluating how the SEC oversees national securities associations registered under section 78o–3. The evaluation must cover: (1) how those associations are governed, including how they identify and manage conflicts of interest, and how those conflicts affect their enforcement or rulemaking; (2) the exams those associations run, including examiner expertise; (3) their executive pay practices; (4) the arbitration services they offer; (5) how they review advertising by their members; (6) how they cooperate with and help state securities regulators protect investors; (7) how they use their funding to support their mission, including (A) how they raise funds, (B) whether funds are sufficient, (C) how they invest funds before spending them, and (D) how funding methods, sufficiency, and investment affect their enforcement; (8) their policies on hiring former association employees into regulated firms; (9) how well their rules keep achieving their intended goals; (10) how transparent their governance and activities are; and (11) any other issue the Comptroller General thinks affects how well they perform their mission and treat investors and members fairly. (b) Reimbursements for cost of reports. (1) Reimbursements required: the SEC must pay the Government Accountability Office back in full for the cost of these reports, as billed by the Comptroller General. (2) Crediting and use of reimbursements: this money is (A) credited to the GAO's "Salaries and Expenses" account current when received, and (B) stays available until spent.

the actual law source: uscode.house.gov ↗public domain

(a) Report required

Not later than 2 years after July 21, 2010, and every 3 years thereafter, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that includes an evaluation of the oversight by the Commission of national securities associations registered under section 78o–3 of this title with respect to—

(1)

the governance of such national securities associations, including the identification and management of conflicts of interest by such national securities associations, together with an analysis of the impact of any conflicts of interest on the regulatory enforcement or rulemaking by such national securities associations;

(2)

the examinations carried out by the national securities associations, including the expertise of the examiners;

(3)

the executive compensation practices of such national securities associations;

(4)

the arbitration services provided by the national securities associations;

(5)

the review performed by national securities associations of advertising by the members of the national securities associations;

(6)

the cooperation with and assistance to State securities administrators by the national securities associations to promote investor protection;

(7)

how the funding of national securities associations is used to support the mission of the national securities associations, including—

(A)

the methods of funding;

(B)

the sufficiency of funds;

(C)

how funds are invested by the national securities association pending use; and

(D)

the impact of the methods, sufficiency, and investment of funds on regulatory enforcement by the national securities associations;

(8)

the policies regarding the employment of former employees of national securities associations by regulated entities;

(9)

the ongoing effectiveness of the rules of the national securities associations in achieving the goals of the rules;

(10)

the transparency of governance and activities of the national securities associations; and

(11)

any other issue that has an impact, as determined by the Comptroller General, on the effectiveness of such national securities associations in performing their mission and in dealing fairly with investors and members; 1

(b) Reimbursements for cost of reports

(1) Reimbursements required

The Commission shall reimburse the Government Accountability Office for the full cost of making the reports under subsection (a), as billed therefor by the Comptroller General.

(2) Crediting and use of reimbursements

Such reimbursements shall—

(A)

be credited to the appropriation account “Salaries and Expenses, Government Accountability Office” current when the payment is received; and

(B)

remain available until expended.

Source credit: (Pub. L. 111–203, title IX, § 964, July 21, 2010, 124 Stat. 1910.)

history & why it existsrecord from the source credit

2010Enacted · Pub. L. 111-203 · 124 Stat. 1910

A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 2010-07-21.

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