‘‘(2) 
COORDINATION
AND
COOPERATION.— 
Upon the request of any State insurance regulator, 
the Commission or the Financial Industry Regu-
latory Authority shall provide such reasonable assist-
ance to the requesting Authority as needed in con-
nection with the coordination or implementation of 
this section. 
‘‘(3) DEFINITION OF STATE INSURANCE REGU-
LATOR.—As used in this subsection, the term ‘State 
insurance regulator’ means the principal insurance 
regulatory authority of a State, the District of Co-
lumbia, any territory of the United States, Puerto 
Rico, Guam, American Samoa, the Trust Territory 
of the Pacific Islands, the Virgin Islands, and the 
Northern Mariana Islands. 
‘‘(c) ADDITIONAL EXEMPTIONS.—A person who com-
plies with a standard substantially similar to the second 
subsection (k) of section 15 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o) may rely on the exemptions 
in section 408(b)(21) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1108(b)(21)) and section 
4975(d)(24) of the Internal Revenue Code of 1986 (as 
added by the PASS Act of 2017) only if such person is— 
‘‘(1) registered as an investment adviser under 
the Investment Advisers Act of 1940 (15 U.S.C. 
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80b–1 et seq.) or under the laws of the State in 
which the person maintains its principal office and 
place of business; or 
‘‘(2) a bank or similar financial institution su-
pervised by the United States or a State, or a sav-
ings association (as defined in section 3(b)(1) of the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1813(b)(1)).’’. 
(c) EXEMPTION FROM PROHIBITED TRANSACTIONS 
FOR BROKERS AND DEALERS, AND OTHER PERSONS AND 
ENTITIES, WHEN MAKING RECOMMENDATIONS TO RE-
TAIL CUSTOMERS.— 
(1) Section 408(b) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1108(b)) is 
amended by adding at the end the following: 
‘‘(21) Any transaction involving a recommenda-
tion made by a broker or dealer (including its reg-
istered representative), or other persons or entities, 
that is subject to the requirements of the second 
subsection (k) of section 15 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o(k)).’’. 
(2) Section 4975(d) of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following: 
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‘‘(24) any transaction involving a recommenda-
tion made by a broker or dealer (including its reg-
istered representatives), or other persons or entities, 
that is subject to the requirements of the second 
subsection (k) of section 15 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o(k)).’’. 
(d) REPEAL
OF CERTAIN PROVISIONS.—The fol-
lowing provisions are hereby repealed: 
(1) The second subsection (l) and subsection 
(m) of section 15 of the Securities Exchange Act of 
1934 (15 U.S.C. 78o). 
(2) Subsections (g), (h), and (i) of section 211 
of the Investment Advisers Act of 1940 (15 U.S.C. 
80b–11). 
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Union Calendar No. 865 
115TH CONGRESS 
2D SESSION 
H. R. 3857 
[Report No. 115–894, Part I] 
A BILL 
To amend the Securities Exchange Act of 1934 to 
establish standards of conduct for brokers and 
dealers that are in the best interest of their retail 
customers. 
DECEMBER 28, 2018 
Committees on Ways and Means and Education and the 
Workforce discharged; committed to the Committee of 
the Whole House on the State of the Union and or-
dered to be printed 
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