HR 20 IH
any of such statutes, or has failed reasonably to
supervise, with a view to preventing violations
of the provisions of such statutes, rules, and
regulations, another person who commits such a
violation, if such other person is subject to his
supervision. For the purposes of this subpara-
graph (E) no person shall be deemed to have
failed reasonably to supervise any other person,
if—
(i) there have been established proce-
dures, and a system for applying such pro-
cedures, which would reasonably be ex-
pected to prevent and detect, insofar as
practicable, any such violation by such
other person, and
(ii) such person has reasonably dis-
charged the duties and obligations incum-
bent upon him by reason of such proce-
dures and system without reasonable cause
to believe that such procedures and system
were not being complied with; or
(F) has been found by a foreign financial
regulatory authority to have—
(i) made or caused to be made in any
application for registration or report re-
HR 20 IH
quired to be filed with a foreign financial
regulatory authority, or in any proceeding
before a foreign financial regulatory au-
thority with respect to registration, any
statement that was at the time and in the
light of the circumstances under which it
was made false or misleading with respect
to any material fact, or has omitted to
state in any application or report to the
foreign financial regulatory authority any
material fact that is required to be stated
therein;
(ii) violated any foreign statute or
regulation regarding transactions in securi-
ties, or contracts of sale of a commodity
for future delivery, traded on or subject to
the rules of a contract market or any
board of trade; or
(iii) aided, abetted, counseled, com-
manded, induced, or procured the violation
by any person of any provision of any stat-
utory provisions enacted by a foreign gov-
ernment, or rules or regulations there-
under, empowering a foreign financial reg-
ulatory authority regarding transactions in
HR 20 IH
securities, or contracts of sale of a com-
modity for future delivery, traded on or
subject to the rules of a contract market or
any board of trade, or has been found, by
a foreign financial regulatory authority, to
have failed reasonably to supervise, with a
view to preventing violations of such statu-
tory provisions, rules, and regulations, an-
other person who commits such a violation,
if such other person is subject to his super-
vision.
(3) AUTHORITY
TO
REMOVE
OFFICERS.—The
Board is authorized, by order, if in its opinion such
action is necessary or appropriate in the public in-
terest, for the protection of investors, or otherwise in
furtherance of the purposes of this Act, to remove
from office or censure any officer or director of a
national derivatives association, if the Board finds,
on the record after notice and opportunity for hear-
ing, that such officer or director has willfully vio-
lated any provision of this Act, the rules or regula-
tions thereunder, or the rules of such national de-
rivatives association, willfully abused his or her au-
thority, or without reasonable justification or excuse
has failed to enforce compliance with any such provi-
HR 20 IH
sion by any member or person associated with a
member.
SEC. 409. GENERAL AUTHORITY.
In carrying out this title, the Board is authorized—
(1) to conduct investigations and issue adminis-
trative subpoenas;
(2) to seek and obtain injunctions of violations
of this title and the rules and regulations there-
under;
(3) to issue and enforce cease and desist orders
with respect to such violations;
(4) to impose and collect civil penalties with re-
spect to such violations; and
(5) to issue such rules and regulations and take
such other actions as may be necessary and appro-
priate in furtherance of the purposes of this title.
TITLE V—MISCELLANEOUS
SEC. 501. SAVINGS PROVISION.
The provisions of this Act shall be in addition to and
not in derogation of any existing authority of a Federal
financial institution regulatory agency to supervise or reg-
ulate derivatives activities provided under any other appli-
cable law.
Æ
HR 20 IH——2
HR 20 [H——3 HR 20 [H——C4 HR 20 TH——5 HR 20 IH 71