I 
118TH CONGRESS 
2D SESSION H. R. 10336 
To improve access for diverse-owned asset management firms, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 10, 2024 
Mrs. BEATTY introduced the following bill; which was referred to the Com-
mittee on Oversight and Accountability, and in addition to the Commit-
tees on Education and the Workforce, Financial Services, Transportation 
and Infrastructure, Armed Services, and House Administration, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To improve access for diverse-owned asset management 
firms, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Too Narrow to Succeed 
Act’’. 
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SEC. 2. PURPOSE. 
The purpose of this Act is to improve access for di-
verse-owned, including women- and minority-owned, asset 
management firms by— 
(1) increasing transparency regarding the asset 
management firm selection processes of Federal in-
stitutional investors; 
(2) identifying common and potential barriers 
that limit business opportunities for diverse-owned 
asset management firms and developing strategies to 
remove these barriers; and 
(3) enabling both public and private retirement 
funds to adopt broader and more inclusive selection 
processes to reduce systemic risk and maximize re-
turns, consistent with administrators’ fiduciary re-
sponsibilities. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ASSET
MANAGEMENT
FIRM.—The term 
‘‘asset management firm’’ means any investment 
firm that— 
(A) manages a portfolio of securities or 
other assets for a defined benefit plan or other 
institutional investor; or 
(B) offers investment options, such as mu-
tual, private equity, real estate, or other com-
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mingled funds, to participate in a defined con-
tribution or other comparable retirement plan. 
(2) 
DIVERSE-OWNED.—The 
term 
‘‘diverse- 
owned’’, when used with respect to an asset manage-
ment firm, means any threshold or other require-
ments determined appropriate by the Secretary 
under section 4(a)(3). 
(3) FEDERAL INSTITUTIONAL INVESTOR.—The 
term ‘‘Federal institutional investor’’ means each of 
the following: 
(A) The Federal Retirement Thrift Invest-
ment Board. 
(B) The entity that administers— 
(i) the funds of the Pension Benefit 
Guaranty Corporation established under 
section 4005 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
1305); 
(ii) the funds of the National Railroad 
Retirement Investment Trust established 
under section 15(j) of the Railroad Retire-
ment Act of 1974 (45 U.S.C. 231n(j)); 
(iii) the funds of the Federal Reserve 
System Retirement Plan; 
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(iv) the funds of the Federal Reserve 
System Thrift Plan; 
(v) the funds of the Tennessee Valley 
Authority Retirement System; 
(vi) the funds of the Tennessee Valley 
Authority Retirement System Savings and 
Deferral Retirement Plan; 
(vii) the funds of the Army and Air 
Force Exchange Service Retirement Sys-
tem; 
(viii) the funds of the Navy Exchange 
Service Command Retirement Plan; or 
(ix) the endowment funds of the 
Smithsonian Institution. 
(C) Any other Federal entity that admin-
isters a fund— 
(i) with more than $1,000,000,000 in 
assets invested for which the entity uses 
the services of, or contracts with, an asset 
management firm; and 
(ii) that the Secretary determines is 
similar to the Thrift Savings Fund or a 
fund described in subparagraph (B). 
(4) FEDERAL INVESTMENTS.—The term ‘‘Fed-
eral investments’’ means investments of sums in a 
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fund administered by a Federal institutional inves-
tor. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(6) 
SUBCONTRACTOR
ASSET
MANAGEMENT 
FIRM.—The term ‘‘subcontractor asset management 
firm’’ means an asset management firm that— 
(A) enters into a contract (including a sub-
contract) with an asset management firm that 
is the primary manager of Federal investments, 
through the use of services or by contract, for 
a Federal institutional investor; and 
(B) under the terms of the contract, man-
ages Federal investments of the Federal institu-
tional investor. 
SEC. 4. IMPROVING ACCESS FOR DIVERSE-OWNED ASSET 
MANAGEMENT FIRMS. 
(a) ANNUAL REPORTS BY FEDERAL INSTITUTIONAL 
INVESTORS THAT INVEST IN EXTERNALLY MANAGED AS-
SETS.— 
(1) ANNUAL REPORTS.— 
(A) REPORTS
REQUIRED.—By not later 
than 1 year after the date of enactment of this 
Act, and annually thereafter, each Federal in-
stitutional investor that uses the services of, or 
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contracts with, an asset management firm to 
manage Federal investments shall prepare and 
submit a report to the Secretary on the usage 
of diverse-owned asset management firms by 
the Federal institutional investor. 
(B) INCLUSION OF SUBCONTRACTOR ASSET 
MANAGEMENT FIRMS.—The report under sub-
paragraph (A) shall also include all subcon-
tractor asset management firms of the Federal 
institutional investor. 
(2) CONTENT OF REPORTS.—Each report de-
scribed in paragraph (1) shall include, with respect 
to any fund administered by the Federal institu-
tional investor that uses the services of, or contracts 
with, an asset management firm— 
(A) the amounts of assets in such fund 
that are managed by non-diverse-owned asset 
management firms and by diverse-owned asset 
management firms, as determined by the Sec-
retary under paragraph (3), disaggregated by 
race, ethnicity, and gender; 
(B) the challenges, if any, the Federal in-
stitutional investor faces in reporting on di-
verse-owned and non-diverse-owned asset man-
agement firms; 
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(C) the challenges the Federal institutional 
investor faces in selecting diverse-owned asset 
management firms (including through subcon-
tractor asset management firms) to manage in-
vestments of sums in the fund administered by 
the Federal institutional investor; 
(D) the actions taken during the reporting 
period, or planned to be taken, by the Federal 
institutional investor to alleviate barriers that 
limit participation of diverse-owned asset man-
agement firms; and 
(E) the actions taken during the reporting 
period, or planned to be taken, by the Federal 
institutional investor to increase opportunities 
for diverse-owned asset management firms to 
compete for contracts. 
(3) DIVERSE-OWNED.—The Secretary shall 
evaluate industry benchmarks to determine the 
threshold or other requirements necessary for an 
asset management firm to qualify as diverse-owned. 
(4) 
PUBLIC
AVAILABILITY.—The 
Secretary 
shall make each report submitted under paragraph 
(1) publicly available. 
(b) SENSE OF CONGRESS RELATING TO DIVERSE- 
OWNED ASSET MANAGEMENT FIRMS AND COVERED PRI-
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VATE SECTOR PLANS.—It is the sense of Congress that 
the Advisory Council on Employee Welfare and Pension 
Benefit Plans (commonly known as the ‘‘ERISA Advisory 
Council’’) routinely consider barriers to the usage of di-
verse-owned asset management firms among covered pri-
vate sector plans, and methods to overcome such barriers. 
(c) SURVEY OF FUND MANAGEMENT BEST PRAC-
TICES.— 
(1) IN GENERAL.—The Secretary shall— 
(A) conduct a survey of the best practices 
in fund asset management with respect to in-
creasing the utilization and capacity of diverse- 
owned asset management firms; and 
(B) prepare and submit a report to Con-
gress not less often than every 3 years, or more 
frequently as the Secretary considers to be ap-
propriate. 
(2) REQUIREMENTS
OF
SURVEY.—The Sec-
retary shall survey a sample of public and private- 
sector pension plans subject to the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1001 
et seq.) and other retirement funds that are engaged 
in (or looking to engage in) strategies to improve ac-
cess to, and representation by, diverse-owned asset 
management firms. 
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(3) REPORT.—The Secretary shall make pub-
licly available a report to Congress on the best prac-
tices of pension funds and other retirement funds 
with respect to implementing strategies to improve 
access to diverse-owned asset management firms. 
The report shall include— 
(A) the challenges pension funds and other 
retirement funds may face in adopting or exe-
cuting strategies to engage more with diverse- 
owned asset management firms as the primary 
institutional fund manager or as subcontractor 
asset management firms, including women- and 
minority-owned asset management firms; and 
(B) an identification of the strategies 
adopted to implement programs. 
Æ 
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