II

105TH CONGRESS

1ST SESSION S. 1227

To amend title I of the Employee Retirement Income Security Act of 1974

to clarify treatment of investment managers under such title.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 26, 1997

Mr. JEFFORDS (for himself, Mr. D’AMATO, Mr. SARBANES, Mr. GRAMM, Mr.

DODD, Mr. BOND, Mr. KENNEDY, and Mr. BINGAMAN) introduced the

following bill; which was read twice, considered, read the third time, and

passed

A BILL

To amend title I of the Employee Retirement Income Security Act of 1974 to clarify treatment of investment managers under such title.

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. INVESTMENT MANAGERS UNDER ERISA TO IN2 CLUDE FIDUCIARIES REGISTERED SOLELY

3 UNDER STATE LAW ONLY IF FEDERAL REG4 ISTRATION PROHIBITED UNDER RECENTLY

5 ENACTED PROVISIONS.

6 (a) IN GENERAL.—Section 3(38)(B) of the Employee

7 Retirement Income Security Act of 1974 (29 U.S.C.

8 1002(38)(B)) is amended—

9 (1) by redesignating clauses (ii) and (iii) as

10 clauses (iii) and (iv), respectively; and

11 (2) by striking ‘‘who is’’ and all that follows

12 through clause (i) and inserting the following: ‘‘who

13 (i) is registered as an investment adviser under the

14 Investment Advisers Act of 1940; (ii) is not reg15 istered as an investment adviser under such Act by

16 reason of paragraph (1) of section 203A(a) of such

17 Act, is registered as an investment adviser under the

18 laws of the State (referred to in such paragraph (1))

19 in which it maintains its principal office and place

20 of business, and, at the time the fiduciary last filed

21 the registration form most recently filed by the fidu22 ciary with such State in order to maintain the fidu23 ciary’s registration under the laws of such State,

24 also filed a copy of such form with the Secretary;’’.

25 (b) AVAILABILITY OF DOCUMENTS VIA FILING DE26 POSITORY.—A fiduciary shall be treated as meeting the
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1 requirements of section 3(38)(B)(ii) of the Employee Re2 tirement Income Security Act of 1974 (as amended by

3 subsection (a)) relating to provision to the Secretary of

4 Labor of a copy of the form referred to therein, if a copy

5 of such form (or substantially similar information) is

6 available to the Secretary of Labor from a centralized elec7 tronic or other record-keeping database.

8 (c) EFFECTIVE DATE.—The amendments made by

9 subsection (a) shall take effect on July 8, 1997, except

10 that the requirement of section 3(38)(B)(ii) of the Em11 ployee Retirement Income Security Act of 1974 (as

12 amended by this Act) for filing with the Secretary of

13 Labor of a copy of a registration form which has been

14 filed with a State before the date of the enactment of this

15 Act, or is to be filed with a State during the 1-year period

16 beginning with such date, shall be treated as satisfied

17 upon the filing of such a copy with the Secretary at any

18 time during such 1-year period. This section shall super19 sede section 308(b) of the National Securities

20 Markets Improvement Act of 1996 (and the amendment

21 made thereby).

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