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Securities Exchange Act of 1934





Section 4 -- Securities and Exchange Commission


  1. Establishment; composition; limitations on commissioners; terms of office

    There is hereby established a Securities and Exchange Commission (hereinafter referred to as the "Commission") to be composed of five commissioners to be appointed by the President by and with the advice and consent of the Senate. Not more than three of such commissioners shall be members of the same political party, and in making appointments members of different political parties shall be appointed alternately as nearly as may be practicable. No commissioner shall engage in any other business, vocation, or employment than that of serving as commissioner, nor shall any commissioner participate, directly or indirectly, in any stock-market operations or transactions of a character subject to regulation by the Commission pursuant to this title. Each commissioner shall hold office for a term of five years and until his successor is appointed and has qualified, except that he shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office, and except (1) any commissioner appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term, and (2) the terms of office of the commissioners first taking office after June 6, 1934, shall expire as designated by the President at the time of nomination, one at the end of one year, one at the end of two years, one at the end of three years, one at the end of four years, and one at the end of five years, after June 6, 1934.


  2. Appointment and compensation of staff and leasing authority

    1. Appointment and compensation

      The Commission shall appoint and compensate officers, attorneys, economists, examiners, and other employees in accordance with section 4802 of title 5, United States Code.

    2. Reporting of information

      In establishing and adjusting schedules of compensation and benefits for officers, attorneys, economists, examiners, and other employees of the Commission under applicable provisions of law, the Commission shall inform the heads of the agencies referred to under section 1833b of Title 12 and Congress of such compensation and benefits and shall seek to maintain comparability with such agencies regarding compensation and benefits.

    3. Leasing authority

      Notwithstanding any other provision of law, the Commission is authorized to enter directly into leases for real property for office, meeting, storage, and such other space as is necessary to carry out its functions, and shall be exempt from any General Services Administration space management regulations or directives.

  3. Acceptance of travel support for Commission activities from non-Federal sources; regulations

    Notwithstanding any other provision of law, in accordance with regulations which the Commission shall prescribe to prevent conflicts of interest, the Commission may accept payment and reimbursement, in cash or in kind, from non- Federal agencies, organizations, and individuals for travel, subsistence, and other necessary expenses incurred by Commission members and employees in attending meetings and conferences concerning the functions or activities of the Commission. Any payment or reimbursement accepted shall be credited to the appropriated funds of the Commission. The amount of travel, subsistence, and other necessary expenses for members and employees paid or reimbursed under this subsection may exceed per diem amounts established in official travel regulations, but the Commission may include in its regulations under this subsection a limitation on such amounts.

  4. Acceptance of relocation expenses from former employers by professional fellows program participants

    Notwithstanding any other provision of law, former employers of participants in the Commission's professional fellows programs may pay such participants their actual expenses for relocation to Washington, District of Columbia, to facilitate their participation in such programs, and program participants may accept such payments.

  5. Fee payments

    Notwithstanding any other provision of law, whenever any fee is required to be paid to the Commission pursuant to any provision of the securities laws or any other law, the Commission may provide by rule that such fee shall be paid in a manner other than in cash and the Commission may also specify the time that such fee shall be determined and paid relative to the filing of any statement or document with the Commission.

  6. Reimbursement of expenses for assisting foreign securities authorities

    Notwithstanding any other provision of law, the Commission may accept payment and reimbursement, in cash or in kind, from a foreign securities authority, or made on behalf of such authority, for necessary expenses incurred by the Commission, its members, and employees in carrying out any investigation pursuant to section 21(a)(2) or in providing any other assistance to a foreign securities authority. Any payment or reimbursement accepted shall be considered a reimbursement to the appropriated funds of the Commission.


Legislative History


June 6, 1934, c. 404, Title I, § 4, 48 Stat. 885; Oct. 28, 1949, c. 782, Title XI, § 1106(a), 63 Stat. 972; July 12, 1960, Pub.L. 86-619, § 3, 74 Stat. 408; Sept. 13, 1960, Pub.L. 86-771, 74 Stat. 913; Aug. 14, 1964, Pub.L. 88-426, Title III, § 305(20), 78 Stat. 425; June 6, 1983, Pub.L. 98 38, § 1, 97 Stat. 205; Dec. 4, 1987, Pub.L. 100-181, Title III, § 307, 101 Stat. 1254; Nov. 15, 1990, Pub.L. 101-550, Title I, § 103, Title II, § 207, 104 Stat. 2713, 2721; Oct. 11, 1996, Pub.L. 104-290, Title IV, § 406, 110 Stat. 3444; Nov. 3, 1998, Pub.L. 105-353, Title II, § 203, 112 Stat. 3234; Jan. 16, 2002, P.L. 107-123, § 8(d)(2), 115 Stat. 2399.

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