Document: 422 U.S. 694 95 S.Ct. 2427. 45 L.Ed.2d 486 UNITED STATES, Appellant,v.NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC., et al. No. 73—1701. Argued March 17, 1975. Decided June 26, Syllabus Section 22(d) of the Investment Company Act 1940 provides that 'no dealer shall sell (mutual-fund shares) to any person except a dealer, principal underwriter, or issuer, at current public offering price described in prospectus.' 22(f) authorizes mutual funds impose restrictions on negotiability and transferability shares, provided they conform with fund's registration statement do not contravene rules regulations Securities Exchange Commission (SEC) may prescribe interests holders all outstanding securities. 2(a)(6) defines 'broker' as engaged business effecting transactions securities for account others, § 2(a)(11) 'dealer' regularly buying selling his own account. The Maloney 1938 (§ 15A 1934) supplements SEC's regulation over-the-counter markets by providing system cooperative self-regulation through voluntary associations brokers dealers. Government brought this action against appellee National Association Dealers (NASD), certain funds, mutual-fund underwriters, broker-dealers, alleging appellees, violation 1 Sherman Act, combined agreed restrict sale fix resale prices shares secondary market between dealers, from an investor investors brokered transactions, sought enjoin such agreements. Count I complaint charged horizontal combination conspiracy among NASD's members prevent growth purchase contending count was be read direct attack NASD rules, but interpretations appellees' extension so include market. Counts II—VIII alleged various vertical activities. District Court dismissed grounds (f), when conjunction afforded antitrust immunity challenged practices. It further determined that, apart statutory immunity, pervasive regulatory scheme established these statutes conferred implied sanction. court concluded maintenance mandate sales 'dealers' applied which broker-dealer acts rather than 'dealer,' thus governs agent well those he Held: 1. Neither language nor legislative history justifies extending section's beyond its literal terms encompass broker-dealers acting 'brokers.' Pp. 711-720. (a) To construe cover would displace laws implication also impinge more flexible authority under 22(f). Implied can justified only convincing showing clear repugnancy system, here no has been made. 719-720. (b) Such expansion 22(d)'s coverage serve neither Court's responsibility reconcile where feasible obligation interpret manner most conducive effectuation goals. P. 720. 2. enjoined are kinds agreements authorized 22(f), hence immune liability Act. 720-730. contemplated distribution limitations face themselves. section covering latter disserve broad remedial function section, which, complement protection disruptive competition caused dealers' 'bootleg market' trading SEC deal flexibly other detrimental practices imposing SEC-approved negotiability. 722-725. contend, does, exercise insufficient give rise conforming misconceives statute's intended operation. By properly disclosed unless inconsistent subject disapproval. 726-728. (c) compromised if were deemed actionable There reconciliation permit similar restrictive Act's declaration illegal per se. In instance must way is work. 729-730. 3. activities required therefore cannot find shelter therein. Acts sufficiently pervasive, however, confer 730-735. 374 F.Supp. 95, affirmed. Gerald Norton, Washington, D.C., appellant. Lee Loevinger, appellees. Walter North, Commission, amicus curiae, special leave Court. Opinion Mr. Justice POWELL, announced BLACKMUN. This appeal requires determine extent upon 52 Stat. 1070, amended, 15 U.S.C. 78o—3, 1940, 54 789, 80a—1 seq., displaces strong policy embodied 26 209, At issue whether employed marketing open-end management companies, popularly referred 'mutual funds,' liability. We conclude are, accordingly affirm judgment 2 * An 'investment company' invests corporations issues own.1 Shares investment company represent proportionate portfolio, their value fluctuates relation changes it owns. common form company, 'open end' fund, law redeem demand approximating share net asset time redemption.2 order avoid liquidation redemption, continuously new shares. These features—continuous unlimited compulsory redemption—are, recently recognized, 'unique characteristic(s)) investment. United States v. Cartwright, 411 546, 547, 93 1713, 1714, 36 528 (1973). 3 initial conducted often affiliate broker-dealers3 who contract underwriter public. commonly consists two components, sum calculated fund purchase, 'load,' charge representing fixed percentage value. load divided compensating them efforts.4 4 distribution-redemption constitutes primary operation questioned litigation. parties agree maintain uniform purchasers And view express requirement question exists sales. case focuses, rather, potential 5 Although significant existed prior enactment little presently remains. agrees designed trading, nonetheless contends industry have extended limitation proper boundaries. alleges defendants, appellees herein, transactions.5 Named defendants (NASD),6 funds,7 under-writers,8 broker-dealers.9 6 charges violate 1,10 prays 7 See n. 42, infra. II—VIII, contrast, allege II, IV, VI underwriters entered into compel brokerage specified prohibit interdealer allowing each investors.11 VIII other, contracts combinations numerous under-writers. III, V, VII violations part III entering requiring underwriter-dealer II VI. V agreement one restricted serving public, thereby prohibiting App. 14. 8 After carefully examining structure, purpose, held "incompatible (an) action," 109 (DC 1973), quoting Silver New York Stock Exchange, 373 341, 358, 83 1246, 1257, 10 389 (1963). §§ (f) afford challenged. explicit confers sanction 'narrow area shares.' F.Supp., 114. complaint, appealed Court.12 9 position summarized briefly. Noting repeals favored, see, e.g., Philadelphia Bank, 321, 348, 1715, 1733, 915 (1963), urges 22 should extend precise terms, none maintains, moreover, expanded limits implied-immunity doctrine recognized decisions response, advance positions relied They joined (hereinafter Commission), asserts curiae contends, therefore, takes respect I. A. originated congressional concern 1933, 48 74, 77a 1934, 881, 78a inadequate protect Thus, 30 Public Utility Holding 49 837, 79z—4, Congress directed study structures, practices, problems companies toward proposing legislation. Four years intensive scrutiny culminated publication Trust Study recommendation legislation rectify abuses identified. extensive consideration, adopted. 11 vests over companies.13 concerned 80a—22, controls questions presented require us obligates engage necessarily them. If not, we and, so, Resolution will facilitated nature addressed, matter now turn. B 12 thorough description passage bound Part Study.14 13 That Study, see 80a 1, forms basis evaluation 14 Prior basic framework existing today. normally retained wholesaler turn contracted number investing public.15 based approximate sale, commission added price. present one, conditions then largely disappeared following prominently discussed characteristic 'two-price system,' encouraged active tolerated discriminatory two- reflected relationship used method computing daily day established. depends quotations stocks portfolios, constantly. Most computed values portfolio close exchange figure go effect hour day. During interim period known: day's previous day; price, One aware both could 'riskless trading' during period. pt. pp. 851—852. 16 two-price did benefit generally. Some explain thoroughly, unsophisticated probably unaware existence. id., 867. Even knew understood rarely exploit fully. possible, knowledgeable rising information next higher. He guaranteed immediate appreciation investment,16 although advantage obtained expense shareholders, whose equity diluted corresponding amount.17 fee made difficult realize 'paper gain' trading. Because fluctuation exceeded load, generally unable profits engaging rapid in-and-out But insiders, able without paying operate constraint. Thus insiders could, sometimes did, redemption appreciated 24, infra, sources cited 17 advantages broker-dealers. falling enhance waiting fill orders purchased anticipated lower fashion, take 'long position' establishing inventory satisfy purchases previously 854 855. receive prevailing 854, shareholders suffer dilution. 18 As result, existed. Id., 865—867. Principal maintained purchasing dealers retiring shareholders.18 Additionally, sprang up, consisting having contractual underwriter. bootleg discount bought slightly higher Bootleg offer 'initiating small scale war retailers tend(ing) disrupt price.' 865. 19 enacted mind. Sections 22(a) 'eliminat(e) reduc(e) far reasonably practicable dilution . result (the) (of securities) unfair securities,' 80a—22(a). authorize regulate pricing effectuate goal.19 22(b) registered maximum commissions loads connection distribution; 22(e) protects right restricting funds' power suspend postpone date payment. 20 litigation revolve around subsections (d) 22. Bearing mind purposes consider 21 prohibits either distribution. commands U.S.C 80a—22(d).20 excepts requirement. Accordingly, justification imposed transactions. issue, narrower applies 'dealer.' decision reflects expansive 22(d). specifically 'dealer'21 uses distinctively throughout.22 Appellees maintain, definition support assert critical elements term relates 'person' transaction 'regularly' qualify dealer. argued, sells sufficient regularity thereafter restrictions, regardless particular question. argument persuasive. 23 Appellees' reliance reference defining adds analysis, 'broker,' banker,' 'issuer,' 'underwriter,' others 'persons' well. 80a—2(a)(6), (21), (22), (40). instance, distinction transactional capacity. Moreover, think places undue emphasis element remainder provision. On statute apparent broker former effects buys conclusion capacity mandate. Indeed, suggests opposite result. 24 assume, arguendo, ambiguous, nothing contemporaneous justify interpreting sparse,23 considered necessary curb had arisen insiders.24 25 prohibition insider seem adequately served first clause 22(d), prevents 20, supra.25 restriction bears logically thought some purpose. obvious shield competitive impact unrestricted markets, p. perceives provision.26 concluding purpose does resolve strict possibly statutorily defined, constituted passage. Nothing contemporary equally possible disruption brokers. 27 Nor attending subsequent consideration adequate contention sure, portions testimony Chairman Cohen before House Subcommittee Commerce Finance 1967 suggested encompassed irrespective how traded shares,27 occasions discussing transactions.28 point characterizations suggest reach provision thought.29 28 indicates always control re-enacted amended accepted position, historical record.30 impressive evidence contrary found consistently SEC. Responding inquiry 1941, General Counsel stated bar shares: 29 'In my opinion refers transaction. follows, solely investor, prospectus. 'On hand, redeemable security maintained, even though another seller, both. 31 'As itself states, buyer seller principals transaction.' Rel. 78, Mar. 4, Fed.Reg. 10992 (1941). 32 substantially interpretation opinions, Oxford Co., Inc., S.E.C. 681, 690 (1946); Mutual Funds Advisory, 6932, (1972). same asserted recent staff report, 1974 Staff Report 105 2, 107 109, encourage limited transactions,31 advanced consistent longstanding agency administration while controlling, entitled considerable weight. See, Saxbe Bustos, 419 65, 272, 42 231 (1974); Co. Institute Camp, 401 617, 626 627, 91 1091, 1097, 367 (1971); Udall Tallman, 380 16, 85 792, 801, 616 (1965). 33 substance interpreted generic terms. implication, seriously 22(f).32 34 system. U.S., S.Ct., 1733; Borden 308 188, 197—206, 60 182, 187—191, 84 L.Ed. 181 (1939). addition satisfying our feasible, 356—357, 1256—1257, serves section. 35 hold stretched defined mandatory 'We strictly, since privilege free economy.' McKesson & Robbins, 351 305, 316, 76 937, 943, 100 1209 (1956). erred relying determining IV Our determination immunized end inquiry, sheltered Appellees, SEC, defend ruling urge dismissal challenge II—VIII. 37 securities.33 contend statements regulations. because prescribed standards. Instead maintains come within meaning asserting imposition restraints apparently appear certificate itself. unexercised create laws. 38 examination persuades us, leads Commission's competing 39 Unlike Commission-sponsored bill Senate subcommittee hearings preceded introduction compromise proposal later law. promulgate regulations, S. 3580, 22(d)(2), 76th Cong., 3d Sess. (1940).34 allow measures identified Study.35 40 indicates, begun methods included legends certificate, 35, supra, means confined narrow limits. A 868—869; instances 869, themselves, 870—871. 41 limiting range transfer certificate. primarily problem source supply shareholders. consisted 'trading firms' wholesalers much fashion underwriters. firms sold 327, frequently discounted rate 327—328. helped undercut competed cost inevitably discouraged participation 328 85. complex phenomenon origins lay history, industry's ability, course regulation, constitute inappropriate contraction statute.36 role market, urged problem. 43 Together, eliminating sales, inhibits factor pre-1940's assures viable complements authorizing Government's compromises mandate, accepted. 44 views expressed shortly after Rule 26(j)(2), proposed hearings, redemptions commenting rule, characterized 'restriction adverted Dealers, 38, 44—45 indicated above, 719, there cited, responsible statute.37 additional statute. evolution provision, doubt precisely what intended. 46 originally introduced redeemability Congressional raised remain valid disapproved SEC.38 subsequently law, eliminated uncertainty, manifested positive attitude self-regulation. 47 recognizes might adopt. addition, alters focus scrutiny. Whereas original allowed make 'the interest investors,' rulemaking 'interests company.' 80a—2(f). Viewed context, oversight, retain initiative dealing potentially adverse repeatedly private industry. For example, First Multifund America, 6700 (1971), (1970—1971 Transfer Binder) CCH Fed.Sec.L.Rep. 78,209, 80,602, looked ascertain advisor's intimate legitimate.39 Likewise, reports acknowledged played shares.40 Until duly filed publicly disclosed. intention introduce measured caution totally unregulated restrained 31, supra. acceptance fund-initiated three decades hardly represents abdication responsibilities. Rather, manifests informed administrative appropriate combating election initiate kind oversight conclude, 50 trade funds. concerted refusals deal, se Klor's, Inc. Broadway-Hale Stores, 359 207, 211—213, 79 705, 708—710, 741 (1959); Fashion Originators' Guild FTC, 312 457, 465—468, 61 703, 706—708, 949 Here, necessitated unique industry, vested final 'in securities' 80a—22(f). 51 federal regulating conduct Act.41 agree. remains allegedly constituting 'prevent 9. 53 allegations obscured concessions reiterated here. clear, provisions immunity. is, portion complaint. appeared general encouraging focused large distributed association members.42 Subsequently advised repeated Court.43 unofficial 55 scope NASD, withdraw association's prudent. supervisory extensive. Not satisfies requirements qualifies supervised membership, 78o—3(b), submit approval rule changes, 78o—3(j). additionally request supplementation exercised litigation, complied with, 78o 3(k)(2). 56 3(a)(1), (b)(3), (c), weighs concerns continued responsibility. 424, 486—487 (1945); S.E.C., 43—46; 105, 109. Socony-Vacuum Oil 310 150, 227 60, 811, 846, 1129 (1940), investiture lift ban approved 57 meaningful Association's construes implements Each oversight. 58 Finally, challenges membership averred likewise precluded Acts. noted restraining funds.44 Instead, suppression intrafund activities, pursuant nearly years. fatal reconciled ancillary equal force controlled measure 59 enables monitor I, laxity authority.45 frustrate objectives ample eliminate them.46 Here repeal 'necessary (regulatory scheme) work.' 357, 1257. situations, discrete assure entrusted carry out conflicting judgments voiced courts exercising jurisdiction Hughes Tool Trans World Airlines, 409 363, 647, 577 (1973); Pan American Airways, States, 371 296, 476, 325 directly related responsibilities poses substantial danger subjected duplicative mandated. displaced Affirmed. 62 WHITE, whom DOUGLAS, BRENNAN, MARSHALL join, dissenting. 63 majority repeats principle '(i) mplied system.' Ante, fundamental invoked again decisions, vitality many evocation given life analysis facts involved case, inspired 'felt indispensable economy ..' Absent inspiration becomes archaism best, longer tense interplay differing times policies. 64 disagree construction 824, ultimate holding, contrast earlier devoid detailed discussion applicable unacceptable. Under light context approve factors making judicial enforcement. 65 expressly permits directs otherwise laws, safely assumed choices preferred dispute compliance 66 happens subjecting areas commercial activity standard 'public interest' convenience necessity' correspondingly approved, 414 Federal Aviation 1958, 72 770, 1384, affected issued 408, 409, 412 1378, 1379, 1382, 'relieved operations 'antitrust laws," including 'insofar enable anything authorized, order.' (1973), 5(11) Interstate 380, 5(11), similarly carriers employees participating 'shall relieved Also, Clayton 7's prohibitions apply consummated named agencies vesting agencies. 731, 18. 67 have, course, exemptions these; invariable 'that strictly construed,' FMC Seatrain Lines, 726, 733, 1773, 1778, 620 exemption letter Maritime immunize seven categories shipping 'controlling, regulating, preventing, destroying competition.' Court, construing narrowly category arguably embracing merger consequently 68 immunization equivalent, arrangements exempt merely empowered very Where interest,' something similar, reason whatsoever ignored approving disapproving conduct. Radio Corp. 358 334, 354 (1959), Communications television stations exchange, finding, accordance standard, interest, convenience, necessity served. divestiture. defense adjudicate rejected defense, Harlan concurring summarizing holding follows: 69 '(A) binding adjudication proceeding licensee pro tanto considerations alone dispositive appeal.' 353, 468. 70 California FPC, 369 482, 82 901, (1962), Power mergers foreclosed merger. taken passing application. year later, Nat. Bank Merger directing banking immunizes laws.' 350, 1734 (footnote omitted). More recently, Otter Tail 410 366, 1022, interconnections systems refusal interconnect attack. 71 cases clearer '(a)ctivities nevertheless laws,' 372, 1027, foregoing governing principles There, stock discontinue wire service nonmember brokerdealers, notice opportunity heard discontinuance. suit Appeals exchanges exempted 1934. reversed. contained 'only work, minimum necessary.' Conceding permissible deprivations arriving conclusion, review specific enforcement unnecessary conflict coextensiveness agency's power. observed, following, 'a different arise concerning anticompetitive 12, 73 said, Ricci Chicago Mercantile 289, 302, 573, 580, 525 arose Commodity district entertaining stay hand whatever claims rules; adjudication, substitute enforcement, fact disapprove itself, answer 302—303, 13, 580—581. 74 occasion, legality behavior controlling criteria circumstances, replace normal regime statute, review. Civil Aeronautics Board. air carriers, Board, Board 1381, investigate bring halt 'unfair practices' competition,' administered 'competitive regime' clearly delineated elsewhere 308—309. Congress, airlines agency, usual courts, least insofar injunction suits concerned. plain disturbed more, approve, 351—352, 1735. 75 Gordon N.Y. US. 659, 2598, 463, decided today, 19(b) 898, 78s(b), fixing prescription 'reasonable rates commission' members. Price competitors, wholly odds Act; inherently unreasonable, level set. long Act: 'The aim every price-fixing agreement, effective, elimination competition. prices, involves arbitrary unreasonable prices. reasonable today economic become tomorrow. Once established, unchanged absence secured fixed. Agreements themselves unlawful restraints, minute placing government enforcing Law burden ascertaining mere variation conditions.' Trenton Potteries 273 392, 397—398, 377, 379, 700 (1927). 77 Commission. respect, 'plain provisions,' 351, 1735 78 comes precedents, absent supplanted model regime, particularized standards enforced purged illegality. When viewed demonstrably untenable. '(n)o issuer conformity thereto contravention concludes words spares 'funds SEC' 'SEC-approved negotiability,' ante, 724, 725, aimed stifling '(t) agreements' illegality 729, 730. 80 several reasons, majority's conclusions infirm authorities. contains deals incredible participants individually collectively, carte blanche desirable regard policies rests finds fail disapprove, 81 immediately failed heed teaching respects. ignores 'exemptions construed' "strongly disfavored." 1778. Lurking 'transferability negotiability' statement, discovers affirmative Never labored hidden immunities laws; effort precedents. automatically brings refused equate Those cases, demonstrated uniformly actual empowers exemption, true fortiori, approval. approval, 'negotiability transferability'; generously boycotts; approval—rather, failure followed case. disregards direction factors, follow business, indication here, unilateral supplant embraced 'its compromised' 729. analyze need never affirmatively formally adjudication. seemingly left tender mercies fashioning complete disregard approach mandated unanimous supra: vigorously argues third category—which Without inclined fit category. reading construed, (1956), '(r)epeals strongly disfavored, provisions.' 350—351, 1735, (1963) (footnotes observed recently: 'When relationships governed coercion, hesitant override national 374, 1028, 86 (1963); (1962); LEd. led Shipping conferring 'limited exemption' policy.' Carnation Pacific Westbound Conference, 383 219, 218, 785, 784.' 732—733, 1778—1779 87 Exempting existence unacceptable reasons. relies Airways Board's distinctive supplied Northing comparable relevant 88 especially interesting essential working recognizing requested preclude agents, matching buy competitively rates. 718-719, 31. 89 opinion, whole, seems me reject 213, 781, 784, 709 (1966). dissent. '(1) holds being primarily, proposes investing, reinvesting, securities; '(2) issuing face-amount certificates installment type, outstanding; '(3) owning, securities, owns acquire exceeding centum issuer's total assets (exclusive cash items) unconsolidated basis.' 80a—3(a). qualified, series exemptions. 80a—3(b) (c). 80a—2(a)(32), 80a—22(e). Management lack feature 'closed 5, regulated 80a—23. appeal, only. use 'broker-dealer' refer persons 895, induce authorization seperately 'brokers' 80a—2(a)(6) (11), describe 'sales load' difference proceeds invested issuer. 80a—2(a)(35). vigorous efforts fee. promotional Division Regulation, Fund Distribution 112 (Aug. 1974) Report). Two actions premised theories dismissed, Haddad Crosby Gross Ass'n (D.C.1973). Columbia Circuit stayed appeals await resolution petition certiorari denied, 843, 75, (1974). Subsequent filing States' purporting class Fed.Rule Civ.Proc. Courts country. transferred Judicial Panel Multidistrict Litigation, re Sales Antitrust Action Misc. 103—73. 97 4. deferred postponed discovery pending disposition motion dismiss so-called 1938. register conditions, fraudulent manipulative practices; promote equitable trade; safeguard charges; interest. 78o—3(b)(8). associations. (e), (h), (j), (k). Massachusetts Investors Growth Fund, Fidelity Wellington defendant Corp., Vance, Sanders following: Merrill Lynch, Pierce, Fenner Smith, Bache Reynolds E.I. duPont, Glore Forgan, E. F. Hutton, Walston Dean Witter Paine, Webber, Jackson Curtis, Hornblower Weeks-Hemphill, Noyes, pertinent part: 'Every contract, trust otherwise, conspiracy, restraint commerce foreign nations, declared .. sections title guilty misdemeanor, conviction thereof, punished fine fifty thousand dollars, imprisonment year, said punishments, discretion court.' typical Crosby, '(a) broker/dealer participates involving Funds; '(b) fund.' 10—11. charging Wellington, act 15. inhibit development (b), 11. probable October 15, 1974. 822, 37, 45. amendments Expediting 1709, (1970 ed., Supp. IV), affect jurisdiction. 80a—8. 80a—7. Companies 77f; 80a—24(a), inspection copies literature send prospective investors. 80a—24(b). submission periodic updating financial documentation semiannual transmission containing 80a—29. imposes internal companies: capital requirements, 80a—14; selecting directors, 80a—16; qualifications seeking 80a—9. companies. shareholder vote 80a—13, dividend distributions, 80a—19. Industry: Legal Survey, Notre Dame Law. 732 (1969). H.R.Doc.No.279, 1st (1940) III). printed H.R.Doc.No.707, 75th (1938). H.R.Doc.No.70, (1939) II). Report; Potential Economic Impact Repeal (Nov. 1972); H.R.Rep.No.2337, 89th 2d (1966); Special Markets, c. XI—Open-End (Mutual Funds), H.R.Doc.No.95, 88th 1963 Study). operating denominated 'contract opinion. increasingly began disclose about 867 868. incoming hope 854. Hearings 3580 Committee Banking Currency, Sess., 138 Hearings). shareholders' less purchase. SEE substantial. resulted loss $133,000 single 139—140. Contract obtain profit load. acted agreement. full filled 858—859. reflect 6, associations, matters. police If, proves insufficient, 22(c) 'covering matter, accomplishment ends subsection (a),' proclaims supersede association. 80a—22(c). Shortly proposed, twice-daily pricing. Twice-daily reduced riskless decreased dilutive late 1968 adopt 22c—1, establish 'forward pricing.' Forward eliminates altogether. Adoption Rel.No.5519 (1968), (1967—1969 77,616; CFR 270.22c—1 22c—1 'No prospectus, currently offered security, be: '(A)ny account, bank, insurance owning fiduciary capacity, regular business.' 80a—2(a)(11). bank companies.' 80a—2(a)(6). 80a—3(c)(2), 10(b)(1), 80a—17(e)(1) (2). instances, 80a—2(a)(40), 80a—22(c) (d). 21, 80a—1(b)(2), 80a—9(a)(1) (2), 80a—30(a). 'broker-dealer,' 80a—22(b)(1) Committee, resembling subsection. emerged consultation representatives Hearings, 1105—1107, MidAmerica 328, 331 H.R.Rep.No. 2337, 219 Revised reflecting submitted, House. Both bills reported favorably respective committees, S.Rep.No.1775, (1940); H.R.Rep.No.2639, bill, minor Senate. Cong.Rec. 10069—10071 (1940). perhaps explains dearth relating completed advanced, provide relatively illumination Insider 526—527 660—661. representative contain preferential others. 1057. met seek differences memorandum outlining resultant Framework Proposed Bill (Title I), Memorandum Embodying Suggestions Resulting Conferences Between Representatives (May 1940), H.R.10065 Foreign Commerce, 99 insider-trading complemented 22(g), precludes issuance services property 80A—22(g). N—22D—1, Rel.No.2798, (1958), (1957—1961 76,625, 80,393; Diversified Services, Rel.No.3015 (1960), 76,699, 80,620; Sideris, Rel.No.8816, (1970); Rel.No.6932, preventing discrimination supra; 331; foster remedied All possibility sophisticated fortuitous purview inquiries state stated: unequivocal. No person, gets it, issuer.' Amendments 90th 711 (1967). 53. Senator Sparkman, Currency 1970 Senate, floor 'now makes crime anyone distributor.' 115 838 (1969) (emphasis added). Magnuson view, stating insulated 114 23057 (1968) witnesses shared view. 1659 (1967) Hearings) (testimony Funston, President Exchange); 356 Professor Samuelson); 1064 Wallich). post-enactment broker's dealer's functions technical precise. care distinctions broader skepticism. Acting recommendations Report, amend Rules Fair Practice 'from rates.' Letter Ray Garrett, Jr., Macklin, Nov. 22, 1974, Brief al, Add. revealed neutralize 19. 104. ability Department Addressing continue wait repeal, freeing 6(c) 80a—6(c). 70. presumably powers validity Department's assuming correct affected. 80a—22(f), provides: provided, investors, prohibit— Restrictions Testifying subcommittee, spokesman 'Now coming subparagraph (2) (d), just says 'There you anybody else, back company. presents whole call What keep switching people another. switches, switches 'It committee wants recommend what, experience up time, ought be; subjects like regulations.' 292 293. convinced limit appearing disclosure fully apprised sufficiency can, necessary, suggestion party. note, preliminarily, save dismissal, relate fund. 'fund-imposed.' appears fund-underwriter 'fund-imposed' sense. importantly, fails recognize chain. recognizes, traditionally one. 15(b) fact, requiring, effect, written disinterested directors 80a—15(b) 26(c), enter distribute 44, 48. regarded fund-imposed contemplation Commissioner Loomis, dissenting applicant lacked standing 17(a)(1) 'I ignore nullify perfectly lawful know industry.' Rel.No. (1972) (dissenting opinion). While disagreed Loomis' assessment mentioned 98; 104—106. maintains: grant (under 22(f)) VIII, expert body designated supervise heretofore conduct.' Amicus Curiae 54. effectuating restrain members, particularly inhibited shares; induced broker/dealers knowledge '(c) member agreements; '(d) misleading '(e) suppressed market.' abandonment oral dismiss. 328—332. Notwithstanding clauses counsel intend 330. ambiguously suggested, members' aided abetted 332, informal secret tended Thereafter, response invitation join involve 'over granted exclusive seq. (the Act).' Lawrence Nerheim, 323. raise 'an such' 'aimed over-all going rule-making authority.' Bruce B. Wilson, Assistant Attorney Division, 327. 47. interbrand industry—between no-load open- closed-end investments. Garrett submitting consideration: Chairman, Honorable John Banking, Housing, Urban Affairs, 1974), amendment 78o—3(k)(2), 38(a) 80a—37(a),

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