115TH CONGRESS 

1ST SESSION H. R. 910 

AN ACT 

To direct the Securities and Exchange Commission to provide 

a safe harbor related to certain investment fund research 

reports, 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, 
2 

•HR 910 EH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Fair Access to Invest3 ment Research Act of 2017’’. 

4 SEC. 2. SAFE HARBOR FOR INVESTMENT FUND RESEARCH. 

5 (a) EXPANSION OF THE SAFE HARBOR.—Not later 

6 than the end of the 180-day period beginning on the date 

7 of enactment of this Act, the Securities and Exchange 

8 Commission shall propose, and not later than the end of 

9 the 270-day period beginning on such date, the Commis10 sion shall adopt, upon such terms, conditions, or require11 ments as the Commission may determine necessary or ap12 propriate in the public interest, for the protection of inves13 tors, and for the promotion of capital formation, revisions 

14 to section 230.139 of title 17, Code of Federal Regula15 tions, to provide that a covered investment fund research 

16 report that is published or distributed by a broker or deal17 er— 

18 (1) shall be deemed, for purposes of sections 

19 2(a)(10) and 5(c) of the Securities Act of 1933 (15 

20 U.S.C. 77b(a)(10), 77e(c)), not to constitute an 

21 offer for sale or an offer to sell a security that is the 

22 subject of an offering pursuant to a registration 

23 statement that is effective, even if the broker or 

24 dealer is participating or will participate in the reg25 istered offering of the covered investment fund’s se26 curities; and 
3 

•HR 910 EH

1 (2) shall be deemed to satisfy the conditions of 

2 subsection (a)(1) or (a)(2) of section 230.139 of title 

3 17, Code of Federal Regulations, or any successor 

4 provisions, for purposes of the Commission’s rules 

5 and regulations under the Federal securities laws 

6 and the rules of any self-regulatory organization. 

7 (b) IMPLEMENTATION OF SAFE HARBOR.—In imple8 menting the safe harbor pursuant to subsection (a), the 

9 Commission shall— 

10 (1) not, in the case of a covered investment 

11 fund with a class of securities in substantially con12 tinuous distribution, condition the safe harbor on 

13 whether the broker’s or dealer’s publication or dis14 tribution of a covered investment fund research re15 port constitutes such broker’s or dealer’s initiation 

16 or reinitiation of research coverage on such covered 

17 investment fund or its securities; 

18 (2) not— 

19 (A) require the covered investment fund to 

20 have been registered as an investment company 

21 under the Investment Company Act of 1940 

22 (15 U.S.C. 80a–1 et seq.) or subject to the re23 porting requirements of section 13 or 15(d) of 

24 the Securities Exchange Act of 1934 (15 

25 U.S.C. 78m, 78o(d)) for any period exceeding 
4 

•HR 910 EH

1 the period of time referenced under paragraph 

2 (a)(1)(i)(A)(1) of section 230.139 of title 17, 

3 Code of Federal Regulations; or 

4 (B) impose a minimum float provision ex5 ceeding that referenced in paragraph 

6 (a)(1)(i)(A)(1)(i) of section 230.139 of title 17, 

7 Code of Federal Regulations; 

8 (3) provide that a self-regulatory organization 

9 may not maintain or enforce any rule that would— 

10 (A) prohibit the ability of a member to 

11 publish or distribute a covered investment fund 

12 research report solely because the member is 

13 also participating in a registered offering or 

14 other distribution of any securities of such cov15 ered investment fund; or 

16 (B) prohibit the ability of a member to 

17 participate in a registered offering or other dis18 tribution of securities of a covered investment 

19 fund solely because the member has published 

20 or distributed a covered investment fund re21 search report about such covered investment 

22 fund or its securities; and 

23 (4) provide that a covered investment fund re24 search report shall not be subject to section 24(b) of 

25 the Investment Company Act of 1940 (15 U.S.C. 
5 

•HR 910 EH

1 80a–24(b)) or the rules and regulations thereunder, 

2 except that such report may still be subject to such 

3 section and the rules and regulations thereunder to 

4 the extent that it is otherwise not subject to the con5 tent standards in the rules of any self-regulatory or6 ganization related to research reports, including 

7 those contained in the rules governing communica8 tions with the public regarding investment compa9 nies or substantially similar standards. 

10 (c) RULES OF CONSTRUCTION.—Nothing in this Act 

11 shall be construed as in any way limiting— 

12 (1) the applicability of the antifraud or 

13 antimanipulation provisions of the Federal securities 

14 laws and rules adopted thereunder to a covered in15 vestment fund research report, including section 17 

16 of the Securities Act of 1933 (15 U.S.C. 77q), sec17 tion 34(b) of the Investment Company Act of 1940 

18 (15 U.S.C. 80a–33), and sections 9 and 10 of the 

19 Securities Exchange Act of 1934 (15 U.S.C. 78i, 

20 78j); or 

21 (2) the authority of any self-regulatory organi22 zation to examine or supervise a member’s practices 

23 in connection with such member’s publication or dis24 tribution of a covered investment fund research re25 port for compliance with applicable provisions of the 
6 

•HR 910 EH

1 Federal securities laws or self-regulatory organiza2 tion rules related to research reports, including those 

3 contained in rules governing communications with 

4 the public, or to require the filing of communications 

5 with the public the purpose of which is not to pro6 vide research and analysis of covered investment 

7 funds. 

8 (d) INTERIM EFFECTIVENESS OF SAFE HARBOR.— 

9 (1) IN GENERAL.—From and after the 270-day 

10 period beginning on the date of enactment of this 

11 Act, if the Commission has not adopted revisions to 

12 section 230.139 of title 17, Code of Federal Regula13 tions, as required by subsection (a), and until such 

14 time as the Commission has done so, a broker or 

15 dealer distributing or publishing a covered invest16 ment fund research report after such date shall be 

17 able to rely on the provisions of section 230.139 of 

18 title 17, Code of Federal Regulations, and the 

19 broker or dealer’s publication of such report shall be 

20 deemed to satisfy the conditions of subsection (a)(1) 

21 or (a)(2) of section 230.139 of title 17, Code of Fed22 eral Regulations, if the covered investment fund that 

23 is the subject of such report satisfies the reporting 

24 history requirements (without regard to Form S–3 

25 or Form F–3 eligibility) and minimum float provi-
7 

•HR 910 EH

1 sions of such subsections for purposes of the Com2 mission’s rules and regulations under the Federal 

3 securities laws and the rules of any self-regulatory 

4 organization, as if revised and implemented in ac5 cordance with subsections (a) and (b). 

6 (2) STATUS OF COVERED INVESTMENT FUND.— 

7 After such period and until the Commission has 

8 adopted revisions to section 230.139 and FINRA 

9 has revised rule 2210, for purposes of subsection 

10 (c)(7)(O) of such rule, a covered investment fund 

11 shall be deemed to be a security that is listed on a 

12 national securities exchange and that is not subject 

13 to section 24(b) of the Investment Company Act of 

14 1940 (15 U.S.C. 80a–24(b)). 

15 (3) COVERED INVESTMENT FUNDS COMMUNICA16 TIONS.— 

17 (A) IN GENERAL.—Except as provided in 

18 subparagraph (B), communications that con19 cern only covered investment funds that fall 

20 within the scope of section 24(b) of the Invest21 ment Company Act of 1940 (15 U.S.C. 80a– 

22 24(b)) shall not be required to be filed with 

23 FINRA. 

24 (B) EXCEPTION.—FINRA may require the 

25 filing of communications with the public if the 
8 

•HR 910 EH

1 purpose of those communications is not to pro2 vide research and analysis of covered invest3 ment funds. 

4 (e) DEFINITIONS.—For purposes of this Act: 

5 (1) The term ‘‘covered investment fund re6 search report’’ means a research report published or 

7 distributed by a broker or dealer about a covered in8 vestment fund or any securities issued by the cov9 ered investment fund, but not including a research 

10 report to the extent that it is published or distrib11 uted by the covered investment fund or any affiliate 

12 of the covered investment fund. 

13 (2) The term ‘‘covered investment fund’’ 

14 means— 

15 (A) an investment company registered 

16 under, or that has filed an election to be treated 

17 as a business development company under, the 

18 Investment Company Act of 1940 and that has 

19 filed a registration statement under the Securi20 ties Act of 1933 for the public offering of a 

21 class of its securities, which registration state22 ment has been declared effective by the Com23 mission; and 

24 (B) a trust or other person— 
9 

•HR 910 EH

1 (i) issuing securities in an offering 

2 registered under the Securities Act of 1933 

3 and which class of securities is listed for 

4 trading on a national securities exchange; 

5 (ii) the assets of which consist pri6 marily of commodities, currencies, or deriv7 ative instruments that reference commod8 ities or currencies, or interests in the fore9 going; and 

10 (iii) that provides in its registration 

11 statement under the Securities Act of 1933 

12 that a class of its securities are purchased 

13 or redeemed, subject to conditions or limi14 tations, for a ratable share of its assets. 

15 (3) The term ‘‘FINRA’’ means the Financial 

16 Industry Regulatory Authority. 

17 (4) The term ‘‘research report’’ has the mean18 ing given that term under section 2(a)(3) of the Se19 curities Act of 1933 (15 U.S.C. 77b(a)(3)), except 

20 that such term shall not include an oral communica21 tion. 

22 (5) The term ‘‘self-regulatory organization’’ has 

23 the meaning given to that term under section 
10 

•HR 910 EH

1 3(a)(26) of the Securities Exchange Act of 1934 (15 

2 U.S.C. 78c(a)(26)). 

Passed the House of Representatives May 1, 2017. 

Attest: 

Clerk. 

115TH CONGRESS 

1ST SESSION H. R. 910 

AN ACT 

To direct the Securities and Exchange Commission 

poses. ment fund research reports, and for other purto provide a safe harbor related to certain invest-