[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1090 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 230
114th CONGRESS
  1st Session
                                H. R. 1090

                      [Report No. 114-304, Part I]

To amend the Securities Exchange Act of 1934 to provide protections for 
               retail customers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 2015

  Mrs. Wagner (for herself and Mr. Garrett) introduced the following 
bill; which was referred to the Committee on Financial Services, and in 
addition to the Committee on Education and the Workforce, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

                            October 22, 2015

Additional sponsors: Mr. Royce, Mr. Huizenga of Michigan, Mr. Hultgren, 
 Mr. Poliquin, Mr. Lucas, Mr. Stivers, Mr. Hill, Mr. Luetkemeyer, Mr. 
 Mulvaney, Mr. Messer, Mr. Guinta, Mr. Ross, Mr. King of New York, Mr. 
 Dold, Mr. Barr, Mr. Fincher, Mr. Williams, Mr. Posey, Mr. Tipton, Mr. 
Emmer of Minnesota, Mr. Smith of Texas, Mr. Brooks of Alabama, Mr. Heck 
 of Nevada, Mr. Abraham, Mrs. Black, Mrs. Mimi Walters of California, 
 Mr. Hudson, Mr. Flores, Mr. Jolly, Mr. Frelinghuysen, Mrs. Hartzler, 
                      Mr. Pittenger, and Mr. Duffy

                            October 22, 2015

           Reported from the Committee on Financial Services

                            October 22, 2015

 The Committee on Education and the Workforce discharged; committed to 
the Committee of the Whole House on the State of the Union and ordered 
                             to be printed

_______________________________________________________________________

                                 A BILL


 
To amend the Securities Exchange Act of 1934 to provide protections for 
               retail customers, and for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Retail Investor Protection Act''.

SEC. 2. STAY ON RULES DEFINING CERTAIN FIDUCIARIES.

    After the date of enactment of this Act, the Secretary of Labor 
shall not prescribe any regulation under the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1001 et seq.) defining the 
circumstances under which an individual is considered a fiduciary until 
the date that is 60 days after the Securities and Exchange Commission 
issues a final rule relating to standards of conduct for brokers and 
dealers pursuant to the second subsection (k) of section 15 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o(k)).

SEC. 3. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.

    The second subsection (k) of section 15 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o(k)), as added by section 913(g)(1) of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 
5301 et seq.), is amended by adding at the end the following:
            ``(3) Requirements prior to rulemaking.--The Commission 
        shall not promulgate a rule pursuant to paragraph (1) before--
                    ``(A) providing a report to the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate describing whether--
                            ``(i) retail investors (and such other 
                        customers as the Commission may provide) are 
                        being harmed due to brokers or dealers 
                        operating under different standards of conduct 
                        than those that apply to investment advisors 
                        under section 211 of the Investment Advisers 
                        Act of 1940 (15 U.S.C. 80b-11);
                            ``(ii) alternative remedies will reduce any 
                        confusion or harm to retail investors due to 
                        brokers or dealers operating under different 
                        standards of conduct than those standards that 
                        apply to investment advisors under section 211 
                        of the Investment Advisers Act of 1940 (15 
                        U.S.C. 80b-11), including--
                                    ``(I) simplifying the titles used 
                                by brokers, dealers, and investment 
                                advisers; and
                                    ``(II) enhancing disclosure 
                                surrounding the different standards of 
                                conduct currently applicable to 
                                brokers, dealers, and investment 
                                advisers;
                            ``(iii) the adoption of a uniform fiduciary 
                        standard of conduct for brokers, dealers, and 
                        investment advisors would adversely impact the 
                        commissions of brokers and dealers, the 
                        availability of proprietary products offered by 
                        brokers and dealers, and the ability of brokers 
                        and dealers to engage in principal transactions 
                        with customers; and
                            ``(iv) the adoption of a uniform fiduciary 
                        standard of conduct for brokers or dealers and 
                        investment advisors would adversely impact 
                        retail investor access to personalized and 
                        cost-effective investment advice, 
                        recommendations about securities, or the 
                        availability of such advice and 
                        recommendations.
            ``(4) Economic analysis.--The Commission's conclusions 
        contained in the report described in paragraph (3) shall be 
        supported by economic analysis.
            ``(5) Requirements for promulgating a rule.--The Commission 
        shall publish in the Federal Register alongside the rule 
        promulgated pursuant to paragraph (1) formal findings that such 
        rule would reduce confusion or harm to retail customers (and 
        such other customers as the Commission may by rule provide) due 
        to different standards of conduct applicable to brokers, 
        dealers, and investment advisors.
            ``(6) Requirements under investment advisers act of 1940.--
        In proposing rules under paragraph (1) for brokers or dealers, 
        the Commission shall consider the differences in the 
        registration, supervision, and examination requirements 
        applicable to brokers, dealers, and investment advisors.''.
                                                 Union Calendar No. 230

114th CONGRESS

  1st Session

                               H. R. 1090

                      [Report No. 114-304, Part I]

_______________________________________________________________________

                                 A BILL

To amend the Securities Exchange Act of 1934 to provide protections for 
               retail customers, and for other purposes.

_______________________________________________________________________

                            October 22, 2015

           Reported from the Committee on Financial Services

                            October 22, 2015

 The Committee on Education and the Workforce discharged; committed to 
the Committee of the Whole House on the State of the Union and ordered 
                             to be printed