HR 20 IH
for the public interest and the protection of inves-
tors, finds after a proceeding in accordance with this
subsection that a sanction imposed by a national de-
rivatives association upon such member, participant,
or person associated with a member imposes any
burden on competition not necessary or appropriate
in furtherance of the proposes of this Act or is ex-
cessive or oppressive, the Board may cancel, reduce,
or require the remission of such sanction.
(g) AUTHORITY OF BOARD TO SANCTION ASSOCIA-
TION.—
(1) IN GENERAL.—The Board 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 pur-
poses of this Act to suspend for a period not exceed-
ing twelve months or revoke the registration of such
national derivatives association, or to censure or im-
pose limitations upon the activities, functions, and
operations of such national derivatives association, if
the Board finds, on the record after notice and op-
portunity for hearing, that such national derivatives
association has violated or is unable to comply with
any provision of this Act, the rules or regulations
thereunder, or its own rules or without reasonable
HR 20 IH
justification or excuse has failed to enforce compli-
ance with any such provision by a member thereof
or a person associated with a member thereof.
(2) AUTHORITY TO SUSPEND OR EXPEL MEM-
BERS.—The Board 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 Act,
to suspend for a period not exceeding twelve months
or expel from such national derivatives association
any member thereof or participant therein, if the
Board finds, on the record after notice and oppor-
tunity for hearing, that such suspension or expulsion
is in the public interest and that such member,
whether prior or subsequent to becoming such, or
any person associated with such broker or dealer,
whether prior or subsequent to becoming so associ-
ated—
(A) has willfully made or caused to be
made in any application for registration or re-
port required to be filed with the Board, or in
any proceeding before the Board with respect to
registration, any statement which was at the
time and in the light of the circumstances
under which it was made false or misleading
HR 20 IH
with respect to any material fact, or has omit-
ted to state in any such application or report
any material fact which is required to be stated
therein;
(B) has been convicted within ten years
preceding the filing of any application for reg-
istration or at any time thereafter of any felony
or misdemeanor or of a substantially equivalent
crime by a foreign court of competent jurisdic-
tion which the Board finds—
(i) involves the purchase or sale of
any derivative financial instrument, the
taking of a false oath, the making of a
false report, bribery, perjury, burglary, any
substantially equivalent activity however
denominated by the laws of the relevant
foreign government, or conspiracy to com-
mit any such offense;
(ii) arises out of the conduct of the
business of a derivatives dealer, broker,
dealer, municipal securities dealer, govern-
ment securities broker, government securi-
ties dealer, investment adviser, bank, in-
surance company, fiduciary, transfer agent,
foreign person performing a function sub-
HR 20 IH
stantially equivalent to any of the above, or
entity or person required to be registered
under the Commodity Exchange Act (7
U.S.C. 1 et seq.) or any substantially
equivalent foreign statute or regulation;
(iii) involves the larceny, theft, rob-
bery, extortion, forgery, counterfeiting,
fraudulent 
concealment, 
embezzlement,
fraudulent conversion, or misappropriation
of funds, securities, or derivative financial
instruments, or substantially equivalent ac-
tivity however denominated by the laws of
the relevant foreign government; or
(iv) involves the violation of section
152, 1341, 1342, or 1343 or chapter 25 or
47 of title 18, United States Code, or a
violation of a substantially equivalent for-
eign statute;
(C) is permanently or temporarily enjoined
by order, judgment, or decree of any court of
competent jurisdiction from acting as an deriva-
tives dealer, investment adviser, underwriter,
broker, dealer, municipal securities dealer, gov-
ernment securities broker, government securi-
ties dealer, transfer agent, foreign person per-
HR 20 IH
forming a function substantially equivalent to
any of the above, or entity or person required
to be registered under the Commodity Ex-
change Act or any substantially equivalent for-
eign statute or regulation, or as an affiliated
person or employee of any investment company,
bank, insurance company, foreign entity sub-
stantially equivalent to any of the above, or en-
tity or person required to be registered under
the Commodity Exchange Act or any substan-
tially equivalent foreign statute or regulation, or
from engaging in or continuing any conduct or
practice in connection with any such activity, or
in connection with the purchase or sale of any
derivative financial instrument or security;
(D) has willfully violated any provision of
any Federal banking, securities, or commodities
laws, this title, the rules or regulations under
any of such statutes, or is unable to comply
with any such provision;
(E) has willfully aided, abetted, counseled,
commanded, induced, or procured the violation
by any other person of any provision of any
Federal banking, securities, or commodities
laws, this title, the rules or regulations under