SECTION 19(d) OF THE SECURITIES EXCHANGE ACT OF 1934
15 U.S.C. § 78s(d) (1988)
(d)
Notice of disciplinary action taken by self-regulatory organization against a
member or participant; review of action by appropriate regulatory agency;
procedure.
(1) If
any self-regulatory organization imposes any final disciplinary sanction on any
member thereof or participant therein, denies membership or participation to
any applicant, or prohibits or limits any person in respect to access to
services offered by such organization or member thereof or if any
self-regulatory organization (other than a registered clearing agency) imposes
any final disciplinary sanction on any person associated with a member or bars
any person from becoming associated with a member, the self-regulatory
organization shall promptly file notice thereof with the appropriate regulatory
agency for the self-regulatory organization and (if other than the appropriate
regulatory agency for the self-regulatory organization) the appropriate regulatory
agency for such member, participant, applicant, or other person. The notice
shall be in such form and contain such information as the appropriate
regulatory agency for the self-regulatory organization, by rule, may prescribe
as necessary or appropriate in furtherance of the purposes of this title.
(2) Any
action with respect to which a self-regulatory organization is required by
paragraph (1) of this subsection to file notice shall be subject to review by
the appropriate regulatory agency for such member, participant, applicant, or
other person, on its own motion, or upon application by any person aggrieved
thereby filed within thirty days after the date such notice was filed with such
appropriate regulatory agency and received by such aggrieved person, or within
such longer period as such appropriate regulatory agency may determine.
Application to such appropriate regulatory agency for review, or the
institution of review by such appropriate regulatory agency on its own motion,
shall not operate as a stay of such action unless such appropriate regulatory
agency otherwise orders, summarily or after notice and opportunity for hearing
on the question of a stay (which hearing may consist solely of the submission
of affidavits or presentation of oral arguments). Each appropriate regulatory
agency shall establish for appropriate cases an expedited procedure for
consideration and determination of the question of a stay.