S. 3418

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100100004-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: July 21, 2005
• Sequence Number: 4
• Publication Date: May 12, 1976
• Content Type: REGULATION

Approved For Release 2005/08/03 : CIA-RDP79-00957A000100100004-5
9ITII CONGRESS.
2n SESSION
S, 3418
IN THE SENATE OF THE UNITED STATES
MAY 12, n'76
Mr. PnoxisIIRE introduced the following bill ; which was'read-twice and referred
to the Committee on Banking, Housing and Urban Affairs
To amend the. Securities Exchange Act of 1934 to prohibit
certain issuers of securities from falsifying their books and
records, and for related purposes.
1 Be it enacted by the Senate and house of Representa-.
2 tives o f the United States of America in Congress assembled,
3 That section 13 (b) of the Securities Exchange Act (15
4 U.S.C. 78m (b) ), is amended by renumbering existing see-
5 tion 13 (b) as section 13 (b) (1), and by adding at the end
6 of new section 13 (b) (1), the following subparagraphs:
7 " (2) Every issuer which has a class of securities regis-
8 tered pursuant to section 12 of this title and every issuer
9 which is required to file reports pursuant to. section 15 (d)
10 of this title shall-
Approved fpr Release 2005/08/03 : CIA-RDP79-00957A000100100004-5
 Approved For Release 2005/08/03 : CIA-RDP79-00957A000100100004-5
" (A) make and keep books, records, and accounts,
which accurately and fairly reflect the transactions and
3 dispositions of the assets of the issuer; and
" (13) devise and maintain an adequate system of
internal accounting controls sufficient to provide reason-
able assurailces that-
" (i) transactions are executed in accordance
with 111allagellient's g
eneral or specific allthoriza-
13
tion;
10 (ii) t!'anS;1ctiolis are recorded as ileccsS;ll'y'
11 (1) to permit pi-cpar;ition of financial statements
1t) coi-fornnity With generally- accepted accountin hi?ii--
13 ciple, or ally other criteria applicable to such state-
13 ineitts and (2) to maintain accountability for assets;
1,5 "(Iii) access to assets is permitted only i'i ac-
1G cordance with iilallageiaelit's authorization: and
17- " (IN-) the recorded accountability for assets is
18 compared with the existing assets at reasonable in-
19 tcrvals and appropriate action is taken with respect
20 - to ally differences.
21 " (t,) It shall be unlawful for ally persoi , directly or
22 lildtii't?ctly, to falsify, or cause to be falsified, any -1ook, record,
;;~ 11l'Lellllt, or document, luatle or required to be Wade for ally
2 1 acCCOUlitilin purpose, of ally issuer Which has 1L class of
pr4Y~i~i F#, t~i?QP5jR8/0t; liiCIA?RDP 79 -00957AOf001001000 04 5
~>F' ~, c i lrti
Glis or
 Approved For Release 2005/08/03 : CIA-RDP79-00957A000100100004-5
,3
1 which is required to file reports pursuant to section 15 (d)
2 of this title-
" (4) It shall be unlawful for any person, directly or
4 indirectly-
"(A) to male, or cause to be made, a. materially
false or misleading statement, or
"(B) to omit to state, or cause another person' to
omit to state, any material fact necessary in order to
make statements made, in the light of the circiuii-
stances under which they were made, not misleading
to an 'accountant in coi-mection with any exathhia Lion or
audit of an issuer which has a class of securities registered
13 pursuant to section J2 of this title or which is required to
14 file reports pursuant to section 15 (d) of this title, or in
15 coruiection with any examination or audit of an issuer with
16 respect to an offering registered or to be registered under the
17 Securities Act of 1933.".
Approved For Release 2005/08/03 : CIA-RDP79-00957A000100100004-5
 Approved For Release 2005/08/03 : CIA-RDP79-00957A000100100004-5
w
r
r
Approved For Release 2005/08/03 : CIA-RDP79-00957A000100100004-5