I 

118TH CONGRESS 

2D SESSION H. R. 10198 

To amend the Federal Reserve Act to require the Board of Governors of 

the Federal Reserve System to establish goals for the use of diverse 

investment advisers, brokers, and dealers in investment management 

agreements related to the Board of Governors unusual and exigent circumstances authority, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 21, 2024 

Mrs. BEATTY introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Federal Reserve Act to require the Board 

of Governors of the Federal Reserve System to establish 

goals for the use of diverse investment advisers, brokers, 

and dealers in investment management agreements related to the Board of Governors unusual and exigent 

circumstances authority, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Promoting Diverse In5 vestment Advisers Act’’. 


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1 SEC. 2. REQUIREMENTS FOR INVESTMENT MANAGEMENT 

2 AGREEMENTS. 

3 Section 13(3) of the Federal Reserve Act (12 U.S.C. 

4 347d(3)) is amended by adding at the end the following: 

5 ‘‘(F) REQUIREMENTS FOR INVESTMENT

6 MANAGEMENT AGREEMENTS.— 

7 ‘‘(i) IN GENERAL.—With respect to 

8 any investment management agreement en9 tered into by the Board of Governors of 

10 the Federal Reserve System with respect 

11 to any program or facility established 

12 under this paragraph, the Board of Gov13 ernors shall set goals in such agreement 

14 that require investment managers, to the 

15 maximum extent possible, to utilize— 

16 ‘‘(I) investment advisers and sub17 advisers that are diverse individual18 owned and controlled firms as inter19 mediaries; and 

20 ‘‘(II) brokers and dealers that 

21 are diverse individual-owned and con22 trolled firms. 

23 ‘‘(ii) REPORT.—The Board of Gov24 ernors shall include, in the report required 

25 under subparagraph (C), a description of 

26 goals set pursuant to clause (i). 


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1 ‘‘(iii) DEFINITIONS.—For the pur2 poses of this subparagraph: 

3 ‘‘(I) AFFILIATED PERSON.—The 

4 term ‘affiliated person’ has the mean5 ing given that term under section 2(a) 

6 of the Investment Company Act of 

7 1940. 

8 ‘‘(II) BROKER.—The term 

9 ‘broker’ has the meaning given that 

10 term under section 3 of the Securities 

11 Exchange Act of 1934. 

12 ‘‘(III) DEALER.—The term ‘deal13 er’ has the meaning given that term 

14 under section 3 of the Securities Ex15 change Act of 1934. 

16 ‘‘(IV) DIVERSE INDIVIDUAL17 OWNED AND CONTROLLED FIRM.— 

18 The term ‘diverse individual-owned 

19 and controlled firm’ means a firm— 

20 ‘‘(aa) which is at least 51 

21 percent owned by one or more in22 dividuals who are women, minori23 ties, or veterans; or 


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1 ‘‘(bb) whose management 

2 and daily business operations 

3 are— 

4 ‘‘(AA) in the case of a 

5 firm the shares of which are 

6 traded on a national securi7 ties exchange, controlled by 

8 a board with a majority of 

9 members who are women, 

10 minorities, or veterans; and 

11 ‘‘(BB) in the case of 

12 any other firm, at least 51 

13 percent controlled by one or 

14 more individuals who are 

15 women, minorities, or vet16 erans. 

17 ‘‘(V) INVESTMENT ADVISER.— 

18 The term ‘investment adviser’ has the 

19 meaning given the term in section 

20 202(a)(11) of the Investment Advisers 

21 Act of 1940. 

22 ‘‘(VI) MINORITY.—The term ‘mi23 nority’ has the meaning given the 

24 term in section 308(b) of the Finan25 cial Institutions Reform, Recovery, 


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1 and Enforcement Act of 1989 and 

2 also includes any indigenous person in 

3 the United States or its territories. 

4 ‘‘(VII) VETERAN.—The term 

5 ‘veteran’ has the meaning given the 

6 term in section 101 of title 38, United 

7 States Code.’’. 

Æ 


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