IIB 

113TH CONGRESS 

1ST SESSION H. R. 2374 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 30, 2013 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To amend the Securities Exchange Act of 1934 to provide 

protections for retail customers, 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, 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Retail Investor Protec3 tion Act’’. 

4 SEC. 2. STAY ON RULES DEFINING CERTAIN FIDUCIARIES. 

5 After the date of enactment of this Act, the Secretary 

6 of Labor shall not prescribe any regulation under the Em7 ployee Retirement Income Security Act of 1974 (29 

8 U.S.C. 1001 et seq.) defining the circumstances under 

9 which an individual is considered a fiduciary until the date 

10 that is 60 days after the Securities and Exchange Com11 mission issues a final rule relating to standards of conduct 

12 for brokers and dealers pursuant to the second subsection 

13 (k) of section 15 of the Securities Exchange Act of 1934 

14 (15 U.S.C. 78o(k)). 

15 SEC. 3. AMENDMENTS TO THE SECURITIES EXCHANGE ACT 

16 OF 1934. 

17 The second subsection (k) of section 15 of the Securi18 ties Exchange Act of 1934 (15 U.S.C. 78o(k)), as added 

19 by section 913(g)(1) of the Dodd-Frank Wall Street Re20 form and Consumer Protection Act (12 U.S.C. 5301 et 

21 seq.), is amended by adding at the end the following: 

22 ‘‘(3) REQUIREMENTS PRIOR TO RULEMAKING.— 

23 The Commission shall not promulgate a rule pursu24 ant to paragraph (1) before— 

25 ‘‘(A) identifying if retail customers (and 

26 such other customers as the Commission may 

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1 by rule provide) are being systematically 

2 harmed or disadvantaged due to brokers or 

3 dealers operating under different standards of 

4 conduct than those standards that apply to in5 vestment advisors under section 211 of the In6 vestment Advisers Act of 1940 (15 U.S.C. 80b– 

7 11); and 

8 ‘‘(B) identifying whether the adoption of a 

9 uniform fiduciary standard of care for brokers 

10 or dealers and investment advisors would ad11 versely impact retail investor access to personal12 ized investment advice, recommendations about 

13 securities, or the availability of such advice and 

14 recommendations. 

15 ‘‘(4) REQUIREMENTS FOR PROMULGATING A

16 RULE.—The Commission shall publish in the Fed17 eral Register alongside the rule promulgated pursu18 ant to paragraph (1) formal findings that such rule 

19 would reduce the confusion of a retail customer (and 

20 such other customers as the Commission may by 

21 rule provide) about standards of conduct applicable 

22 to brokers, dealers, and investment advisors. 

23 ‘‘(5) REQUIREMENTS UNDER INVESTMENT AD24 VISERS ACT OF 1940.—In proposing rules under 

25 paragraph (1) for brokers or dealers, the Commismstockstill on DSK4VPTVN1PROD with BILLS

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1 sion shall consider the differences in the registration, 

2 supervision, and examination requirements applica3 ble to brokers, dealers, and investment advisors.’’. 

Passed the House of Representatives October 29, 

2013. 

Attest: KAREN L. HAAS, 

Clerk. 

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