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‘‘(1) AUTHORITY.—The Commission may make
inspections of any wholesale financial holding com-
pany that—
‘‘(A) controls a wholesale financial institu-
tion;
‘‘(B) is not a foreign bank; and
‘‘(C) does not control an insured bank
(other than an institution permitted under sub-
paragraph (D), (F), or (G) of section 2(c)(2),
or held under section 4(f), of the Bank Holding
Company Act of 1956) or a savings association,
and any affiliate of such company, for the purpose
of monitoring and enforcing compliance by the
wholesale financial holding company with the Fed-
eral securities laws.
‘‘(2) LIMITATION.—The Commission shall limit
the focus and scope of any inspection under para-
graph (1) to those transactions, policies, procedures,
or records that are reasonably necessary to monitor
and enforce compliance by the wholesale financial
holding company or any affiliate with the Federal
securities laws.
‘‘(3) DEFERENCE TO EXAMINATIONS.—To the
fullest extent possible, the Commission shall use, for
220
the purposes of this subsection, the reports of exami-
nations—
‘‘(A) made by the Board of Governors of
the Federal Reserve System of any wholesale fi-
nancial holding company that is supervised by
the Board;
‘‘(B) made by or on behalf of any State
regulatory agency responsible for the super-
vision of an insurance company of any licensed
insurance company; and
‘‘(C) made by any Federal or State bank-
ing agency of any bank or institution described
in subparagraph (D), (F), or (G) of section
2(c)(2), or held under section 4(f), of the Bank
Holding Company Act of 1956.
‘‘(4) NOTICE.—To the fullest extent possible,
the Commission shall notify the appropriate regu-
latory agency prior to conducting an inspection of a
wholesale
financial
institution
or
institution
de-
scribed in subparagraph (D), (F), or (G) of section
2(c)(2), or held under section 4(f), of the Bank
Holding Company Act of 1956.
‘‘(k) AUTHORITY TO LIMIT DISCLOSURE OF INFOR-
MATION.—Notwithstanding any other provision of law, the
Commission shall not be compelled to disclose any infor-
221
mation required to be reported under subsection (h) or
(i) or any information supplied to the Commission by any
domestic or foreign regulatory agency that relates to the
financial or operational condition of any associated person
of a broker or dealer, investment bank holding company,
or any affiliate of an investment bank holding company.
Nothing in this subsection shall authorize the Commission
to withhold information from Congress, or prevent the
Commission from complying with a request for informa-
tion from any other Federal department or agency or any
self-regulatory organization requesting the information for
purposes within the scope of its jurisdiction, or complying
with an order of a court of the United States in an action
brought by the United States or the Commission. For pur-
poses of section 552 of title 5, United States Code, this
subsection shall be considered a statute described in sub-
section (b)(3)(B) of such section 552. In prescribing regu-
lations to carry out the requirements of this subsection,
the Commission shall designate information described in
or obtained pursuant to subparagraphs (A), (B), and (C)
of subsection (i)(5) as confidential information for pur-
poses of section 24(b)(2) of this title.’’.
(b) CONFORMING AMENDMENTS.—
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(1) Section 3(a)(34) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(34)) is amended by
adding at the end the following new subparagraphs:
‘‘(H) When used with respect to an institu-
tion described in subparagraph (D), (F), or (G)
of section 2(c)(2), or held under section 4(f), of
the Bank Holding Company Act of 1956—
‘‘(i) the Comptroller of the Currency,
in the case of a national bank or a bank
in the District of Columbia examined by
the Comptroller of the Currency;
‘‘(ii) the Board of Governors of the
Federal Reserve System, in the case of a
State member bank of the Federal Reserve
System or any corporation chartered under
section 25A of the Federal Reserve Act;
‘‘(iii) the Federal Deposit Insurance
Corporation, in the case of any other bank
the deposits of which are insured in ac-
cordance with the Federal Deposit Insur-
ance Act; or
‘‘(iv) the Commission in the case of all
other such institutions.’’.
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(2) Section 1112(e) of the Right to Financial
Privacy Act of 1978 (12 U.S.C. 3412(e)) is amend-
ed—
(A) by striking ‘‘this title’’ and inserting
‘‘law’’; and
(B) by inserting ‘‘, examination reports’’
after ‘‘financial records’’.
Subtitle D—Study
SEC. 241. STUDY OF METHODS TO INFORM INVESTORS AND
CONSUMERS OF UNINSURED PRODUCTS.
Within one year after the date of enactment of this
Act, the Comptroller General of the United States shall
submit a report to the Congress regarding the efficacy,
costs, and benefits of requiring that any depository insti-
tution that accepts federally insured deposits and that, di-
rectly or through a contractual or other arrangement with
a broker, dealer, or agent, buys from, sells to, or effects
transactions for retail investors in securities or consumers
of insurance to inform such investors and consumers
through the use of a logo or seal that the security or insur-
ance is not insured by the Federal Deposit Insurance Cor-
poration.
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SEC. 242. STUDY OF LIMITATION ON FEES ASSOCIATED
WITH ACQUIRING FINANCIAL PRODUCTS.
Before the end of the 1-year period beginning on the
date of the enactment of this Act, the Comptroller General
of the United States shall submit a report to the Congress
regarding the efficacy and benefits of uniformly limiting
any commissions, fees, markups, or other costs incurred
by customers in the acquisition of financial products.
Subtitle E—Disclosure of Customer
Costs
of
Acquiring
Financial
Products
SEC. 251. IMPROVED AND CONSISTENT DISCLOSURE.
(a) REVISED REGULATIONS REQUIRED.—Within one
year after the date of enactment of this Act, each Federal
financial regulatory authority shall prescribe rules, or revi-
sions to its rules, to improve the accuracy, simplicity, and
completeness, and to make more consistent, the disclosure
of information by persons subject to the jurisdiction of
such regulatory authority concerning any commissions,
fees, markups, or other costs incurred by customers in the
acquisition of financial products.
(b) CONSULTATION.—In prescribing rules and revi-
sions under subsection (a), the Federal financial regu-
latory authorities shall consult with each other and with
appropriate State financial regulatory authorities.