Title 15 — Commerce and TradeRelease 119-73

§78d–3 Appearance and practice before the Commission

Title 15 › Chapter CHAPTER 2B— - SECURITIES EXCHANGES › § 78d–3

Last updated Apr 6, 2026|Official source

Summary

The Commission can censure someone or stop them from practicing before the Commission, for a time or forever, if it gives notice, holds a hearing, and finds one of three things: the person lacks the needed qualifications; the person lacks character or has behaved unethically; or the person willfully broke, or helped break, the securities laws or the rules under them. For registered public accounting firms and their people, "improper professional conduct" means either intentional or reckless acts that break professional rules, or negligent behavior. Negligence can be one very unreasonable act that should have raised alarms, or repeated unreasonable acts that show a lack of competence.

Full Legal Text

Title 15, §78d–3

Commerce and Trade — Source: USLM XML via OLRC

(a)The Commission may censure any person, or deny, temporarily or permanently, to any person the privilege of appearing or practicing before the Commission in any way, if that person is found by the Commission, after notice and opportunity for hearing in the matter—

(1)not to possess the requisite qualifications to represent others;

(2)to be lacking in character or integrity, or to have engaged in unethical or improper professional conduct; or

(3)to have willfully violated, or willfully aided and abetted the violation of, any provision of the securities laws or the rules and regulations issued thereunder.

(b)With respect to any registered public accounting firm or associated person, for purposes of this section, the term “improper professional conduct” means—

(1)intentional or knowing conduct, including reckless conduct, that results in a violation of applicable professional standards; and

(2)negligent conduct in the form of—

(A)a single instance of highly unreasonable conduct that results in a violation of applicable professional standards in circumstances in which the registered public accounting firm or associated person knows, or should know, that heightened scrutiny is warranted; or

(B)repeated instances of unreasonable conduct, each resulting in a violation of applicable professional standards, that indicate a lack of competence to practice before the Commission.

Reference

Citations & Metadata

Citation

15 U.S.C. § 78d–3

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73