1/27/2005 USA PATRIOT Act Monitor News Release: SEC Provided
Emergency Order Authority Under Intelligence Act
In a section of the Intelligence Reform and Terrorism Prevention Act of 2004 devoted to the SEC, the agency has been provided authority to issue emergency orders to address extraordinary market disturbances. The authority can be exercised:
(i) to maintain or restore fair and orderly securities
markets (other than markets in exempted securities);
(ii) to ensure prompt, accurate, and safe clearance and settlement of transactions in securities (other than exempted securities); or
(iii) to reduce, eliminate, or prevent the substantial disruption by the emergency of--
(I) securities markets (other than markets in exempted securities), investment companies, or any other significant portion or segment of such markets; or
(II) the transmission or processing of securities transactions (other than transactions in exempted securities).
An order is not to continue in effect for more than ten business days, including extensions, unless the emergency continues, in which case the order can remain in effect not more than 30 calendar days. If a securities future product is involved, the SEC is to consult with the CFTC In designating an emergency, the SEC is to consult with the Treasury, the Board of Governors of the Federal Reserve, and the CFTC, unless such consultation is impracticable in light of the emergency.â€ Parallel authority is given to the Secretary of the Treasury as to â€œa government security or market therein.
Other provisions of the Intelligence Act affecting financial institutions will be discussed in detail in the February issue of the Monitor, as well as being included in the checklists for banks, broker-dealers, and money services businesses, posted at http://www.civicresearchinstitute.com/moneylaundering.
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