89 STAT. 152
Ante, p. 137.
Registration, suspension or revocation.
Notice and hearing.
PUBLIC LAW 94-29—JUNE 4, 1975 the appropriate regulatory agency for such applicant or person, after notice and opportunity for hearing (which hearing may consist solely of consideration of the record before the self-regulatory organization and opportunity for the presentation of supporting reasons to dismiss the proceeding or set aside the action of the self-regulatory organization) finds that the specific grounds on which such denial, bar, or prohibition or limitation is based exist in fact, that such denial, bar, or prohibition or limitation is in accordance with the rules of the selfregulatory organization, and that such rules are, and w'ere applied in a manner, consistent with the purposes of this title, such appropriate regulatory agency, by order, shall dismiss the proceeding. I f such appropriate regulatory agency does not make any such finding or if it finds that such denial, bar, or prohibition or limitation imposes any burden on competition not necessary or a p p r o p r i a t e in furtherance of the purposes of this title, such appropriate regulatory agency, by order, shall set aside the action of the self-regulatory organization and require it to admit such applicant to membership or participation, permit such person to become associated with a member, or g r a n t such person access to services offered by the self-regulatory organization or member thereof. " (g)(1) Every self-regulatory organization shall comply with the provisions of t h i s title, the rules and regulations thereunder, and its own rules, and (subject to the provisions of section 17(d) of this title, paragraph (2) of this subsection, and the rules thereunder) absent reasonable justification or excuse enforce compliance— " (A) in the case of a national securities exchange, with such provisions by its members and persons associated with its members; " (B) in the case of a registered securities association, wnth such provisions and the provisions of the rules of the Municipal Securities Kulemaking Board by its members and persons associated with its members; and " (C) in the case of a registered clearing agency, with its own rules by its participants, " (2) The Commission, by rule, consistent with the public interest, the protection of investors, and the other purposes of this title, may relieve any self-regulatory organization of any responsibility under this title to enforce compliance with any specified provision of this title or the rules or regulations thereunder by any member of such organization or person associated with such a member, or any class of such members or persons associated with a member. " (h)(1) The a p p r o p r i a t e regulatory agency for a eelf-regulatory organization is authorized, by order, if in its opinion such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of this title, to suspend for a period not exceeding twelve months or revoke the registration of such self-regulatory organization, or to censure or impose limitations upon the activities, functions, and operations of such selfregulatory organization, if such appropriate regulatory agency finds. on the record after notice and opportunity for hearing, that such selfregulatory organization has violated or is unable to comply with any provision of this title, the rules or regulations thereunder, or its owm rules or without reasonable justification or excuse has failed to enforce compliance— " (A) in the case of a national securities exchange, with any such provision by a member thereof or a person associated w i t h a member thereof; " (B) in the case of a registered securities association, with any such provision or any provision of the rules of the Municipal
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