Page:United States Statutes at Large Volume 54 Part 1.djvu/875

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54 STAT.] 76TH CONG. , 3D SESS.-CH. 686-AUG. 22 , 1940 INJUNCTIONS AGAINST GROSS ABUSE SEC. 36. The Commission is authorized to bring an action in the proper district court of the United States or United States court of any Territory or other place subject to the jurisdiction of the United States, alleging that a person serving or acting in one or more of the following capacities has been guilty, after the enactment of this title and within five years of the commencement of the action, of gross misconduct or gross abuse of trust in respect of any registered invest- ment company for which such person so serves or acts: (1) as officer, director, member of an advisory board, invest- ment adviser, or depositor; or (2) as principal underwriter, if such registered company is an open-end company, unit investment trust, or face-amount certificate company. If the Commission's allegations of such gross misconduct or gross abuse of trust are established, the court shall enjoin such person from acting in such capacity or capacities either permanently or for such period of time as it in its discretion shall deem appropriate. LARCENY AND EMBEZZLEMENT SEC. 37. Whoever steals, unlawfully abstracts, unlawfully and will- fully converts to his own use or to the use of another, or embezzles any of the moneys, funds, securities, credits, property, or assets of any registered investment company shall be deemed guilty of a crime, and upon conviction thereof shall be subject to the penalties provided in section 49. A judgment of conviction or acquittal on the merits under the laws of any State shall be a bar to any prosecu- tion under this section for the same act or acts. RULES, REGULATIONS, AND ORDERS; GENERAL POWERS OF COMMISSION SEC. 38. (a) The Commission shall have authority from time to time to make, issue, amend, and rescind such rules and regulations and such orders as are necessary or appropriate to the exercise of the powers conferred upon the Commission elsewhere in this title, includ- ing rules and regulations defining accounting, technical, and trade terms used in this title, and prescribing the form or forms in which information required in registration statements, applications, and reports to the Commission shall be set forth. For the purposes of its rules or regulations the Commission may classify persons, securi- ties, and other matters within its jurisdiction and prescribe different requirements for different classes of persons, securities, or matters. (b) The Commission, by such rules and regulations or order as it deems necessary or appropriate in the public interest or for the pro- tection of investors, may authorize the filing of any information or documents required to be filed with the Commission under this title, title II of this Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, or the Trust Indenture Act of 1939, by incorporating by reference any information or documents theretofore or concurrently filed with the Commission under this title or any of such Acts. (c) No provision of this title imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, regulation, or order of the Commission, notwithstanding that such rule, regulation, or order may, after such act or omission, be amended or rescinded or be determined by judicial or other authority to be invalid for any reason. 841 Injunctions against gross abuse. Laroeny and em- bezzlement. Rules, regulations, and orders. Clnssificatlon of per- sons, etc. Filing of Informa- tion. 48 Stat. 74, 881; 49 Stat. 83n; 53 Stat. 1149. Act or omission in good faith.