SEC. 2. REQUIREMENTS FOR INVESTMENT MANAGEMENT 
AGREEMENTS. 
Section 13(3) of the Federal Reserve Act (12 U.S.C. 
347d(3)) is amended by adding at the end the following: 
‘‘(F) REQUIREMENTS
FOR
INVESTMENT 
MANAGEMENT AGREEMENTS.— 
‘‘(i) IN
GENERAL.—With respect to 
any investment management agreement en-
tered into by the Board of Governors of 
the Federal Reserve System with respect 
to any program or facility established 
under this paragraph, the Board of Gov-
ernors shall set goals in such agreement 
that require investment managers, to the 
maximum extent possible, to utilize— 
‘‘(I) investment advisers and sub- 
advisers that are diverse individual- 
owned and controlled firms as inter-
mediaries; and 
‘‘(II) brokers and dealers that 
are diverse individual-owned and con-
trolled firms. 
‘‘(ii) REPORT.—The Board of Gov-
ernors shall include, in the report required 
under subparagraph (C), a description of 
goals set pursuant to clause (i). 
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‘‘(iii) DEFINITIONS.—For the pur-
poses of this subparagraph: 
‘‘(I) AFFILIATED PERSON.—The 
term ‘affiliated person’ has the mean-
ing given that term under section 2(a) 
of the Investment Company Act of 
1940. 
‘‘(II) 
BROKER.—The 
term 
‘broker’ has the meaning given that 
term under section 3 of the Securities 
Exchange Act of 1934. 
‘‘(III) DEALER.—The term ‘deal-
er’ has the meaning given that term 
under section 3 of the Securities Ex-
change Act of 1934. 
‘‘(IV) 
DIVERSE
INDIVIDUAL- 
OWNED
AND
CONTROLLED
FIRM.— 
The term ‘diverse individual-owned 
and controlled firm’ means a firm— 
‘‘(aa) which is at least 51 
percent owned by one or more in-
dividuals who are women, minori-
ties, or veterans; or 
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‘‘(bb) 
whose 
management 
and daily business operations 
are— 
‘‘(AA) in the case of a 
firm the shares of which are 
traded on a national securi-
ties exchange, controlled by 
a board with a majority of 
members who are women, 
minorities, or veterans; and 
‘‘(BB) in the case of 
any other firm, at least 51 
percent controlled by one or 
more individuals who are 
women, minorities, or vet-
erans. 
‘‘(V) INVESTMENT
ADVISER.— 
The term ‘investment adviser’ has the 
meaning given the term in section 
202(a)(11) of the Investment Advisers 
Act of 1940. 
‘‘(VI) MINORITY.—The term ‘mi-
nority’ has the meaning given the 
term in section 308(b) of the Finan-
cial Institutions Reform, Recovery, 
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and Enforcement Act of 1989 and 
also includes any indigenous person in 
the United States or its territories. 
‘‘(VII) 
VETERAN.—The 
term 
‘veteran’ has the meaning given the 
term in section 101 of title 38, United 
States Code.’’. 
Æ 
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