[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3921 Introduced in House (IH)]

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114th CONGRESS
  1st Session
                                H. R. 3921

    To amend the Securities Exchange Act of 1934 to require certain 
 reporting by hedge funds that are the beneficial owner of more than 1 
        percent of a class of security, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 4, 2015

Ms. Velazquez introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Securities Exchange Act of 1934 to require certain 
 reporting by hedge funds that are the beneficial owner of more than 1 
        percent of a class of security, 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 ``Hedge Fund Sunshine Act of 2015''.

SEC. 2. HEDGE FUND OWNERSHIP DISCLOSURES.

    Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
is amended--
            (1) in subsection (d), by adding at the end the following:
    ``(7) Treatment of Hedge Funds.--
            ``(A) In general.--With respect to a hedge fund, the 
        requirements under paragraph (1) shall be applied--
                    ``(i) with `1 per centum' substituted for `5 per 
                centum'; and
                    ``(ii) with `five days' substituted for `ten days'.
            ``(B) Inclusion of derivatives.--In determining beneficial 
        ownership under paragraph (1), a hedge fund shall include any 
        equity security with respect to which the hedge fund owns any 
        derivative instrument which includes the opportunity, directly 
        or indirectly, to profit or share in any profit derived from 
        any increase in the value of such equity security.
            ``(C) Definitions.--For purposes of this paragraph:
                    ``(i) Derivative.--The term `derivative' means any 
                instrument or right with an exercise or conversion 
                privilege or a settlement payment or mechanism at a 
                price related to an equity security or with a value 
                derived in whole or in part from the value of the 
                equity security, whether or not such instrument or 
                right is subject to settlement in the underlying 
                security or otherwise.
                    ``(ii) Hedge fund.--The term `hedge fund' means--
                            ``(I) an issuer that would be an investment 
                        company, as defined in the Investment Company 
                        Act of 1940, but for section 3(c)(1) or 3(c)(7) 
                        of that Act; and
                            ``(II) any similar fund that the Commission 
                        may, by rule, determine appropriate.''; and
            (2) by adding at the end the following:
    ``(s) Hedge Fund Ownership Disclosures.--
            ``(1) In general.--A hedge fund that has $100,000,000 or 
        more in assets under management and that is, directly or 
        indirectly, the beneficial owner of more than 1 percent of a 
        class of any security shall file a quarterly report with the 
        Commission disclosing such ownership interest.
            ``(2) Inclusion of derivatives.--In determining beneficial 
        ownership under paragraph (1), a hedge fund shall include any 
        equity security with respect to which the hedge fund has an 
        ownership interest in any derivative instrument which includes 
        the opportunity, directly or indirectly, to profit or share in 
        any profit derived from any increase in the value of such 
        equity security.
            ``(3) Filing deadline.--A hedge fund required to file a 
        quarterly report under this subsection shall file such report 
        not later than 3 days after the end of such quarter.
            ``(4) Public availability of information.--The Commission 
        shall make all reports received under this subsection publicly 
        available on the Commission's website.
            ``(5) Definitions.--For purposes of this subsection:
                    ``(A) Derivative.--The term `derivative' means any 
                instrument or right with an exercise or conversion 
                privilege or a settlement payment or mechanism at a 
                price related to an equity security or with a value 
                derived in whole or in part from the value of the 
                equity security, whether or not such instrument or 
                right is subject to settlement in the underlying 
                security or otherwise.
                    ``(B) Hedge fund.--The term `hedge fund' means--
                            ``(i) an issuer that would be an investment 
                        company, as defined in the Investment Company 
                        Act of 1940, but for section 3(c)(1) or 3(c)(7) 
                        of that Act; and
                            ``(ii) any similar fund that the Commission 
                        may, by rule, determine appropriate.''.
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