US Code Title 15 Section 80a-30

CITE

    15 USC Sec. 80a-30                                          01/05/2009

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
    SUBCHAPTER I - INVESTMENT COMPANIES

HEAD

    Sec. 80a-30. Accounts and records

STATUTE

    (a) Maintenance of records
      (1) In general
        Each registered investment company, and each underwriter,
      broker, dealer, or investment adviser that is a majority-owned
      subsidiary of such a company, shall maintain and preserve such
      records (as defined in section 78c(a)(37) of this title) for such
      period or periods as the Commission, by rules and regulations,
      may prescribe as necessary or appropriate in the public interest
      or for the protection of investors. Each investment adviser that
      is not a majority-owned subsidiary of, and each depositor of any
      registered investment company, and each principal underwriter for
      any registered investment company other than a closed-end
      company, shall maintain and preserve for such period or periods
      as the Commission shall prescribe by rules and regulations, such
      records as are necessary or appropriate to record such person's
      transactions with such registered company.
      (2) Minimizing compliance burden
        In exercising its authority under this subsection, the
      Commission shall take such steps as it deems necessary or
      appropriate, consistent with the public interest and for the
      protection of investors, to avoid unnecessary recordkeeping by,
      and minimize the compliance burden on, persons required to
      maintain records under this subsection (hereafter in this section
      referred to as "subject persons"). Such steps shall include
      considering, and requesting public comment on -
          (A) feasible alternatives that minimize the recordkeeping
        burdens on subject persons;
          (B) the necessity of such records in view of the public
        benefits derived from the independent scrutiny of such records
        through Commission examination;
          (C) the costs associated with maintaining the information
        that would be required to be reflected in such records; and
          (D) the effects that a proposed recordkeeping requirement
        would have on internal compliance policies and procedures.
    (b) Examinations of records
      (1) In general
        All records required to be maintained and preserved in
      accordance with subsection (a) of this section shall be subject
      at any time and from time to time to such reasonable periodic,
      special, and other examinations by the Commission, or any member
      or representative thereof, as the Commission may prescribe.
      (2) Availability
        For purposes of examinations referred to in paragraph (1), any
      subject person shall make available to the Commission or its
      representatives any copies or extracts from such records as may
      be prepared without undue effort, expense, or delay as the
      Commission or its representatives may reasonably request.
      (3) Commission action
        The Commission shall exercise its authority under this
      subsection with due regard for the benefits of internal
      compliance policies and procedures and the effective
      implementation and operation thereof.
    (c) Limitations on disclosure by Commission
      Notwithstanding any other provision of law, the Commission shall
    not be compelled to disclose any internal compliance or audit
    records, or information contained therein, provided to the
    Commission under this section. Nothing in this subsection shall
    authorize the Commission to withhold information from the Congress
    or prevent the Commission from complying with a request for
    information from any other Federal department or agency requesting
    the information for purposes within the scope of the jurisdiction
    of that department or agency, or complying with an order of a court
    of the United States in an action brought by the United States or
    the Commission. For purposes of section 552 of title 5, this
    section shall be considered a statute described in subsection
    (b)(3)(B) of such section 552.
    (d) Definitions
      For purposes of this section -
        (1) the term "internal compliance policies and procedures"
      means policies and procedures designed by subject persons to
      promote compliance with the Federal securities laws; and
        (2) the term "internal compliance and audit record" means any
      record prepared by a subject person in accordance with internal
      compliance policies and procedures.
    (e) Regulatory authority
      The Commission may, in the public interest or for the protection
    of investors, issue rules and regulations providing for a
    reasonable degree of uniformity in the accounting policies and
    principles to be followed by registered investment companies in
    maintaining their accounting records and in preparing financial
    statements required pursuant to this subchapter.
    (f) Exemption authority
      The Commission, upon application made by any registered
    investment company, may by order exempt a specific transaction or
    transactions from the provisions of any rule or regulation made
    pursuant to subsection (e) of this section, if the Commission finds
    that such rule or regulation should not reasonably be applied to
    such transaction.

SOURCE

    (Aug. 22, 1940, ch. 686, title I, Sec. 31, 54 Stat. 838; Pub. L.
    104-290, title II, Sec. 207, Oct. 11, 1996, 110 Stat. 3430; Pub. L.
    105-353, title III, Sec. 301(c)(6), Nov. 3, 1998, 112 Stat. 3237.)

AMENDMENTS

      1998 - Subsec. (f). Pub. L. 105-353 substituted "subsection (e)"
    for "subsection (c)".
      1996 - Subsecs. (a), (b). Pub. L. 104-290, Sec. 207(1), added
    subsecs. (a) and (b) and struck out former subsecs. (a) and (b)
    which read as follows:
      "(a) Every registered investment company, and every underwriter,
    broker, dealer, or investment adviser which is a majority-owned
    subsidiary of such a company, shall maintain and preserve for such
    period or periods as the Commission may prescribe by rules and
    regulations, such accounts, books, and other documents as
    constitute the record forming the basis for financial statements
    required to be filed pursuant to section 80a-29 of this title, and
    of the auditor's certificates relating thereto. Every investment
    adviser not a majority-owned subsidiary of, and every depositor of
    any registered investment company, and every principal underwriter
    for any registered investment company other than a closed-end
    company, shall maintain and preserve for such period or periods as
    the Commission shall prescribe by rules and regulations, such
    accounts, books, and other documents as are necessary or
    appropriate to record such person's transactions with such
    registered company.
      "(b) All accounts, books, and other records, required to be
    maintained and preserved by any person pursuant to subsection (a)
    of this section, shall be subject at any time and from time to time
    to such reasonable periodic, special, and other examinations by the
    Commission, or any member or representative thereof, as the
    Commission may prescribe. Any such person shall furnish to the
    Commission, within such reasonable time as the Commission may
    prescribe, copies of or extracts from such records which may be
    prepared without undue effort, expense, or delay, as the Commission
    may by order require."
      Subsecs. (c), (d). Pub. L. 104-290, Sec. 207(3), added subsecs.
    (c) and (d). Former subsecs. (c) and (d) redesignated (e) and (f),
    respectively.
      Subsec. (e). Pub. L. 104-290, Sec. 207(2), (4), redesignated
    subsec. (c) as (e) and inserted heading.
      Subsec. (f). Pub. L. 104-290, Sec. 207(2), (5), redesignated
    subsec. (d) as (f) and inserted heading.

TRANSFER OF FUNCTIONS

      For transfer of functions of Securities and Exchange Commission,
    with certain exceptions, to Chairman of such Commission, see Reorg.
    Plan No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
    64 Stat. 1265, set out under section 78d of this title.