[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1077 Referred in Senate (RFS)]
1st Session
H. R. 1077
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 7, 2005
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To improve the access of investors to regulatory records with respect
to securities brokers, dealers, and investment advisers.
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 ``Realtime Investor Protection Act''.
SEC. 2. CONSTITUTIONAL AUTHORITY.
The constitutional authority on which this Act rests is the power
of Congress to regulate commerce as enumerated in article I, section 8
of the United States Constitution.
SEC. 3. METHOD OF MAINTAINING BROKER/DEALER REGISTRATION, DISCIPLINARY,
AND OTHER DATA.
Subsection (i) of section 15A of the Securities Exchange Act of
1934 (15 U.S.C. 78o-3(i)) is amended to read as follows:
``(i) Obligation to Maintain Registration, Disciplinary, and Other
Data.--
``(1) Maintenance of system to respond to inquiries.--A
registered securities association shall--
``(A) establish and maintain a system for
collecting and retaining registration information;
``(B) establish and maintain a toll-free telephone
listing, and a readily accessible electronic or other
process, to receive and promptly respond to inquiries
regarding--
``(i) registration information on its
members and their associated persons; and
``(ii) registration information on the
members and their associated persons of any
registered national securities exchange that
uses the system described in subparagraph (A)
for the registration of its members and their
associated persons; and
``(C) adopt rules governing the process for making
inquiries and the type, scope, and presentation of
information to be provided in response to such
inquiries in consultation with any registered national
securities exchange providing information pursuant to
subparagraph (B)(ii).
``(2) Recovery of costs.--Such an association may charge
persons making inquiries, other than individual investors,
reasonable fees for responses to such inquiries.
``(3) Process for disputed information.--Such an
association shall adopt rules establishing an administrative
process for disputing the accuracy of information provided in
response to inquiries under this subsection in consultation
with any registered national securities exchange providing
information pursuant to paragraph (1)(B)(ii).
``(4) Limitation of liability.--Such an association, or
exchange reporting information to such an association, shall
not have any liability to any person for any actions taken or
omitted in good faith under this subsection.
``(5) Definition.--For purposes of this subsection, the
term `registration information' means the information reported
in connection with the registration or licensing of brokers and
dealers and their associated persons, including disciplinary
actions, regulatory, judicial, and arbitration proceedings, and
other information required by law, or exchange or association
rule, and the source and status of such information.''.
SEC. 4. FILING DEPOSITORIES FOR INVESTMENT ADVISERS.
(a) Amendment.--Section 204 of the Investment Advisers Act of 1940
(15 U.S.C. 80b-4) is amended--
(1) by striking ``Every investment'' and inserting the
following:
``(a) In General.--Every investment''; and
(2) by adding at the end the following:
``(b) Filing Depositories.--The Commission may, by rule, require an
investment adviser--
``(1) to file with the Commission any fee, application,
report, or notice required to be filed by this title or the
rules issued under this title through any entity designated by
the Commission for that purpose; and
``(2) to pay the reasonable costs associated with such
filing and the establishment and maintenance of the systems
required by subsection (c).
``(c) Access to Disciplinary and Other Information.--
``(1) Maintenance of system to respond to inquiries.--The
Commission shall require the entity designated by the
Commission under subsection (b)(1) to establish and maintain a
toll-free telephone listing, or a readily accessible electronic
or other process, to receive and promptly respond to inquiries
regarding information (including disciplinary actions,
regulatory, judicial, and arbitration proceedings, and other
information required by law or rule to be reported) involving
investment advisers and persons associated with investment
advisers. Such information shall include information on an
investment adviser (and the persons associated with that
adviser) whether the investment adviser is registered with the
Commission under section 203 or regulated solely by a State as
described in section 203A.
``(2) Recovery of costs.--An entity designated by the
Commission under subsection (b)(1) may charge persons making
inquiries, other than individual investors, reasonable fees for
responses to inquiries made under paragraph (1).
``(3) Limitation on liability.--An entity designated by the
Commission under subsection (b)(1) shall not have any liability
to any person for any actions taken or omitted in good faith
under this subsection.''.
(b) Conforming Amendments.--
(1) Section 203A of the Investment Advisers Act of 1940 (15
U.S.C. 80b-3a) is amended--
(A) by striking subsection (d); and
(B) by redesignating subsection (e) as subsection
(d).
(2) Section 306 of the National Securities Markets
Improvement Act of 1996 (15 U.S.C. 80b-10, note; Public Law
104-290; 110 Stat. 3439) is repealed.
Passed the House of Representatives April 6, 2005.
Attest:
JEFF TRANDAHL,
Clerk.