§78x — Title 15 Commerce and Trade | U.S. Code

Summary

The Commission treats as records any documents it gets or files, such as applications, reports, contracts, letters, notices, and similar papers. Commission members and staff must not share those records with people outside the agency or use the information for personal gain, except with other Commission staff or when the Commission’s rules allow it. The Commission can give records to other U.S. or foreign people or groups when it decides it is needed, but only if the receiver promises to keep the information confidential. For public-records law purposes, the Commission counts as a regulator of financial institutions, and the entities it oversees count as financial institutions. The Commission does not have to release records it got from a foreign securities authority if that foreign authority says making them public would break its laws and the records were obtained under an authorized procedure or an agreement. Sharing information with certain authorities—like federal agencies, the Public Company Accounting Oversight Board, self-regulatory organizations, foreign securities or law enforcement authorities, and state securities or law enforcement authorities—does not waive legal privileges. Those privileges include work-product, attorney-client, governmental, or other recognized protections. Nothing here changes the Commission’s duties under the Right to Financial Privacy Act or lets the Commission hide information from Congress or refuse to follow U.S. court orders.

Title 15, §78x

Commerce and Trade — Source: USLM XML via OLRC

(a)For purposes of section 552 of title 5 the term “records” includes all applications, statements, reports, contracts, correspondence, notices, and other documents filed with or otherwise obtained by the Commission pursuant to this chapter or otherwise.

(b)It shall be unlawful for any member, officer, or employee of the Commission to disclose to any person other than a member, officer, or employee of the Commission, or to use for personal benefit, any information contained in any application, statement, report, contract, correspondence, notice, or other document filed with or otherwise obtained by the Commission (1) in contravention of the rules and regulations of the Commission under section 552 of title 5, or (2) in circumstances where the Commission has determined pursuant to such rules to accord confidential treatment to such information.

(c)The Commission may, in its discretion and upon a showing that such information is needed, provide all “records” (as defined in subsection (a)) and other information in its possession to such persons, both domestic and foreign, as the Commission by rule deems appropriate if the person receiving such records or information provides such assurances of confidentiality as the Commission deems appropriate.

(d)Except as provided in subsection (g), the Commission shall not be compelled to disclose records obtained from a foreign securities authority if (1) the foreign securities authority has in good faith determined and represented to the Commission that public disclosure of such records would violate the laws applicable to that foreign securities authority, and (2) the Commission obtains such records pursuant to (A) such procedure as the Commission may authorize for use in connection with the administration or enforcement of the securities laws, or (B) a memorandum of understanding. For purposes of section 552 of title 5, this subsection shall be considered a statute described in subsection (b)(3)(B) of such section 552.

(e)For purposes of section 552(b)(8) of title 5 (commonly referred to as the Freedom of Information Act)—

(1)the Commission is an agency responsible for the regulation or supervision of financial institutions; and

(2)any entity for which the Commission is responsible for regulating, supervising, or examining under this chapter is a financial institution.

(f)(1)The Commission shall not be deemed to have waived any privilege applicable to any information by transferring that information to or permitting that information to be used by—

(A)any agency (as defined in section 6 of title 18);

(B)the Public Company Accounting Oversight Board;

(C)any self-regulatory organization;

(D)any foreign securities authority;

(E)any foreign law enforcement authority; or

(F)any State securities or law enforcement authority.

(2)The Commission shall not be compelled to disclose privileged information obtained from any foreign securities authority, or foreign law enforcement authority, if the authority has in good faith determined and represented to the Commission that the information is privileged.

(3)(A)Federal agencies, State securities and law enforcement authorities, self-regulatory organizations, and the Public Company Accounting Oversight Board shall not be deemed to have waived any privilege applicable to any information by transferring that information to or permitting that information to be used by the Commission.

(B)The provisions of subparagraph (A) shall not apply to a self-regulatory organization or the Public Company Accounting Oversight Board with respect to information used by the Commission in an action against such organization.

(4)For purposes of this subsection—

(A)the term “privilege” includes any work-product privilege, attorney-client privilege, governmental privilege, or other privilege recognized under Federal, State, or foreign law;

(B)the term “foreign law enforcement authority” means any foreign authority that is empowered under foreign law to detect, investigate or prosecute potential violations of law; and

(C)the term “State securities or law enforcement authority” means the authority of any State or territory that is empowered under State or territory law to detect, investigate, or prosecute potential violations of law.

(g)Nothing in this section shall—

(1)alter the Commission’s responsibilities under the Right to Financial Privacy Act (12 U.S.C. 3401 et seq.), as limited by section 78u(h) of this title, with respect to transfers of records covered by such statutes, or

(2)authorize the Commission to withhold information from the Congress or prevent the Commission from complying with an order of a court of the United States in an action commenced by the United States or the Commission.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a) and (e)(2), was in the original “this title”. See

References in Text

note set out under section 78a of this title. The Right to Financial Privacy Act, referred to in subsec. (g)(1), probably means the Right to Financial Privacy Act of 1978, title XI of Pub. L. 95–630, Nov. 10, 1978, 92 Stat. 3697, which is classified generally to chapter 35 (§ 3401 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see

Short Title

note set out under section 3401 of Title 12 and Tables.

Amendments

2010—Subsec. (d). Pub. L. 111–203, § 929K(1), substituted “subsection (g)” for “subsection (f)”. Pub. L. 111–203, § 929I(a)(1), substituted “subsection (f)” for “subsection (e)”. Subsec. (e). Pub. L. 111–257 added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “(1) In general.—Except as provided in subsection (g), the Commission shall not be compelled to disclose records or information obtained pursuant to section 78q(b) of this title, or records or information based upon or derived from such records or information, if such records or information have been obtained by the Commission for use in furtherance of the purposes of this chapter, including surveillance, risk assessments, or other regulatory and oversight activities. “(2) Treatment of information.—For purposes of section 552 of title 5, this subsection shall be considered a statute described in subsection (b)(3)(B) of such section 552. Collection of information pursuant to section 78q of this title shall be an administrative action involving an agency against specific individuals or agencies pursuant to section 3518(c)(1) of title 44.” Pub. L. 111–203, § 929K(2), substituted “subsection (g)” for “subsection (f)” in par. (1). Pub. L. 111–203, § 929I(a)(3), added subsec. (e). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 111–203, § 929K(4), added subsec. (f). Former subsec. (f) redesignated (g). Pub. L. 111–203, § 929I(a)(2), redesignated subsec. (e) as (f). Subsec. (g). Pub. L. 111–203, § 929K(3), redesignated subsec. (f) as (g). 1990—Subsec. (b). Pub. L. 101–550, § 202(a)(1), struck out at end “Nothing in this subsection shall authorize the Commission to withhold information from the Congress.” Subsecs. (c) to (e). Pub. L. 101–550, § 202(a)(2), added subsecs. (c) to (e). 1975—Subsec. (a). Pub. L. 94–29 substituted “For purposes of section 552 of title 5, the term ‘records’ includes all applications, statements, reports, contracts, correspondence, notices, and other documents filed with or otherwise obtained by the Commission pursuant to this chapter or otherwise” for “Nothing in this chapter shall be construed to require, or to authorize the Commission to require, the revealing of trade secrets or processes in any application, report, or document filed with the Commission under this chapter”. Subsecs. (b), (c). Pub. L. 94–29 redesignated subsec. (c) as (b) and substituted “application, statement, report, contract, correspondence, notice, or other document filed with or otherwise obtained by the Commission (1) in contravention of the

Rules and Regulations

of the Commission under section 552 of title 5, or (2) in circumstances where the Commission has determined pursuant to such rules to accord confidential treatment for such information. Nothing in this subsection shall authorize the Commission to withhold information from Congress” for “application, report, or document filed with the Commission which is not made available to the public pursuant to subsection (b) of this section: Provided, That the Commission may make available to the Board of Governors of the Federal Reserve System any information requested by the Board for the purpose of enabling it to perform its duties under this chapter”. Former subsec. (b), providing for written objection to public disclosure of information, was struck out.

Statutory Notes and Related Subsidiaries

Change of Name

section 203(a) of act Aug. 23, 1935, substituted “Board of Governors of the Federal Reserve System” for “Federal Reserve Board”.

Effective Date

of 2010 AmendmentAmendment 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 1975 AmendmentAmendment by Pub. L. 94–29 effective June 4, 1975, see section 31(a) of Pub. L. 94–29, set out as a note under section 78b of this title.

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.

§78x Public availability of information

Summary

Title 15, §78x

Notes & Related Subsidiaries

Editorial Notes

References in Text

References in Text

Short Title

Amendments

Rules and Regulations

Statutory Notes and Related Subsidiaries

Change of Name

Effective Date

Effective Date

Effective Date

Executive Documents

Transfer of Functions

Transfer of Functions

Citations & Metadata