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2000 - Rules and Regulations
Subpart I—Rules and Procedures for Imposition of
Sanctions Upon Municipal Securities Dealers or Persons Associated With
Them and Clearing Agencies or Transfer Agents
§ 308.134 Scope.
The rules and procedures in this subpart, subpart B of the Local
Rules and the Uniform Rules shall apply to proceedings by the Board of
Directors or its designee:
(a) To censure, limit the activities of, suspend, or revoke the
registration of, any municipal securities dealer for which the FDIC is
the appropriate regulatory agency;
(b) To censure, suspend, or bar from being associated with such a
municipal securities dealer, any person associated with such a
municipal securities dealer; and
(c) To deny registration, to censure limit the activities of,
suspend, or revoke the registration of, any transfer agent or clearing
agency for which the FDIC is the appropriate regulatory agency. This
subpart and the Uniform Rules shall not apply to proceedings to
postpone or suspend registration of a transfer agent or clearing agency
pending final determination of denial or revocation of registration.
[Codified to 12 C.F.R.
§ 308.134]
§ 308.135 Grounds for imposition of sanctions.
(a) Action under section 15(b)(4) of the Exchange
Act. The Board of Directors or its designee may issue and have
served upon any municipal securities dealer for which the FDIC is the
appropriate regulatory agency, or any person associated or seeking to
become associated with a municipal securities dealer for which the FDIC
is the appropriate regulatory agency, a written notice of its intention
to censure, limit the activities or functions or operations of,
suspend, or revoke the registration of, such municipal
securities
{{8-16-91 p.2161}}dealer, or to censure,
suspend, or bar the person from being associated with the municipal
securities dealer, when the Board of Directors or its designee
determines:
(1) That such municipal securities dealer or such person
(i) Has committed any prohibited act or omitted any required act
specified in subparagraph (A), (D), or (E) of section 15(b)(4) of the
Exchange Act, as amended (15 U.S.C.
78o);
(ii) Has been convicted of any offense specified in section
15(b)(4)(B) of the Exchange Act within ten years of commencement of
proceedings under this subpart; or
(iii) Is enjoined from any act, conduct, or practice specified in
section 15(b)(4)(C) of the Exchange Act; and
(2) That it is in the public interest to impose any of the
sanctions set forth in paragraph (a) of this section.
(b) Action under sections 17 and 17A of the Exchange
Act. The Board of Directors or its designee may issue, and have
served upon any transfer agent or clearing agency for which the FDIC is
the appropriate regulatory agency, a written Notice of its intention to
deny registration to, censure, place limitations on the activities of
function or operations of, suspend, or revoke the registration of, the
transfer agent or clearing agency, when the Board of Directors or its
designee determines:
(1) That the transfer agent or clearing agency has willfully
violated, or is unable to comply with, any applicable provision of
section 17 or
17A of the Exchange Act, as
amended, or any applicable rule or regulation issued pursuant thereto;
and
(2) That it is in the public interest to impose any of the
sanctions set forth in paragraph (b) of this section.
[Codified to 12 C.F.R.
§ 308.135]
§ 308.136 Notice to and consultation with the Securities and
Exchange Commission.
Before initiating any proceedings under § 308.135, the FDIC shall:
(a) Notify the Securities and Exchange Commission of the identity
of the municipal securities dealer or associated person against whom
proceedings are to be initiated, and the nature of and basis for the
proposed action; and
(b) Consult with the Commission concerning the effect of the
proposed action on the protection of investors and the possibility of
coordinating the action with any proceeding by the Commission against
the municipal securities dealer or associated person.
[Codified to 12 C.F.R.
§ 308.136]
§ 308.137 Effective date of order imposing sanctions.
An order issued by the Board of Directors after a hearing or an
order issued upon default shall become effective at the expiration of
30 days after the service of the order, except that an order of
censure, denial, or revocation of registration is effective when
served. An order issued upon consent shall become effective at the time
specified therein. All orders shall remain effective and enforceable
except to the extent they are stayed, modified, terminated, or set
aside by the Board of Directors, or its designee, or a reviewing court,
provided that orders of suspension shall continue in effect no longer
than 12 months.
[Codified to 12 C.F.R. § 308.137]
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