PUBLIC LAW 101-429—OCT. 15, 1990 104 STAT. 957 tional information necessary to prevent such statement from being misleading; "(B) place limitations on the use of such proceeds and the distribution of securities by such issuer until the disclosures required under subparagraph (A) have been made; and "(C) provide a right of rescission to shareholders of such securities. "(2) The Commission may, as it determines consistent with the public interest and the protection of investors, by rule or order exempt any issuer or class of issuers from the rules prescribed under paragraph (1). "(3) For purposes of paragraph (1) of this subsection, the term 'blank check company' means any development stage company that is issuing a penny stock (within the meaning of section 3(a)(51) of the Securities Exchange Act of 1934) and that— "(A) has no specific business plan or purpose; or "(B) has indicated that its business plan is to merge with an unidentified company or companies.". SEC. 509. BROKER/DEALER DISCIPLINARY HISTORY. Section 15A of the Securities Exchange Act 1934 (15 U.S.C. 78o-3) is amended by adding at the end the following: "(i) A registered securities association shall, within one year from Telecommunications. the date of enactment of this section, (1) establish and maintain a toll-free telephone listing to receive inquiries regarding disciplinary actions involving its members and their associated persons, and (2) promptly respond to such inquiries in writing. Such association may charge persons, other than individual investors, reasonable fees for written responses to such inquiries. Such an association shall not have any liability to any person for any actions taken or omitted in good faith under this paragraph.". SEC. 510. REVIEW OF REGULATORY STRUCTURES AND PROCEDURES. 15 USC 78s note. (a) REVIEW REQUIRED. —The Clomptroller General, in consultation with the Securities and Exchange Commission, sheill conduct a review of the rules, procedures, facilities, and oversight and enforcement activities of self-regulatory organizations under the Securities Exchange Act of 1934 with respect to penny stocks (within the meaning of section 3(a)(51) of such Act). Such review shall include an angilysis of^ (1) the resources devoted by self-regulatory organizations to the detection, investigation, prosecution, and correction of fraud and abuse in the trading of such penny stocks; (2) the methods and techniques used, and alternative methods which may be used, in those oversight and enforcement activities, including methods and techniques involving coordinated oversight and enforcement activities with other Federal and State authorities; (3) the adequacy of the rules, procedures, and facilities of such self-regulatory organizations for the prevention of excessive spreads and markups, unscrupulous sales practices, and other conduct inconsistent with high standards of commercial honor and just and equitable principles of trade; (4) any obstacles to or limitations on the authority of self- regulatory organizations that impair the conduct of those oversight and enforcement activities;
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