102d CONGRESS
2d Session
S. 3389
AN ACT
To amend the Securities Exchange Act of 1934 to prohibit certain transactions
with respect to managed accounts.
S 3389 ES
102d CONGRESS
2d Session
S. 3389
AN ACT
To amend the Securities Exchange Act of 1934 to prohibit certain transactions
with respect to managed accounts.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. PROHIBITED TRANSACTIONS FOR MANAGED ACCOUNTS.
  Section 11(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78k(a)(1))
  is amended--
  (1) in subparagraph (E), by striking `(other than an investment company)';
  (2) by striking `and' at the end of subparagraph (G);
  (3) by redesignating subparagraph (H) as subparagraph (I); and
  (4) by inserting after subparagraph (G) the following new subparagraph:
  `(H) any transaction for an account with respect to which such member or
  an associated person thereof exercises investment discretion if such member--
  `(i) has obtained, from the person or persons authorized to transact business
  for the account, express authorization for such member or associated person
  to effect such transactions prior to engaging in the practice of effecting
  such transactions;
  `(ii) furnishes the person or persons authorized to transact business for
  the account with a statement at least annually disclosing the aggregate
  compensation received by the exchange member in effecting such transactions;
  and
  `(iii) complies with any rules the Commission has prescribed with respect
  to the requirements of clauses (i) and (ii); and'.
Passed the Senate October 8 (legislative day, September 30), 1992.
Attest:
Secretary.