(J) any State insurance commissioner, in-
cluding the National Association of Insurance
Commissioners only to the extent—
(i) such association is acting as the
agent of, and is subject to the oversight of,
any such insurance commissioner; and
(ii) the association provides notice to
the Subcommittee when it is acting in such
capacity as an agent;
(K) any State securities administrator, in-
cluding the North American Securities Adminis-
trators Association only to the extent—
(i) such association is acting as the
agent of, and is subject to the oversight of,
any such securities administrator; and
(ii) the association provides notice to
the Subcommittee when it is acting in such
capacity as an agent;
(L) any State credit union supervisor, in-
cluding the National Association of State Credit
Union Supervisors only to the extent—
(i) such association is acting as the
agent of, and is subject to the oversight of,
any such credit union supervisor; and
(ii) the association provides notice to
the Subcommittee when it is acting in such
capacity as an agent;
(M) the National Association of Securities
Dealers, only to the extent that—
(i) such association is acting in con-
nection with the financial services industry
and is subject to the oversight of the Secu-
rities and Exchange Commission; and
(ii) the association provides notice to
the Subcommittee when it is acting in such
capacity;
(N) the National Futures Association, only
to the extent that—
(i) such association is acting in con-
nection with the financial services industry
and is subject to the oversight of the Com-
modity Futures Trading Commission or
the Securities and Exchange Commission;
and
(ii) the association provides notice to
the Subcommittee when it is acting in such
capacity; and
(O) any other self-regulatory organization
that engages in or coordinates regulatory and
enforcement activities, with respect to any per-
son engaged in the business of conducting fi-
nancial activities, that is subject to the over-
sight of the Securities and Exchange Commis-
sion or the Commodity Futures Trading Com-
mission.
(4) PARTICIPANT.—The term ‘‘participant’’
means any regulator which—
(A) is represented by a member of, or a li-
aison to, the Subcommittee; and
(B) is allowed access to the network by the
Subcommittee.
(5) PERSON ENGAGED IN THE BUSINESS OF
CONDUCTING
FINANCIAL
ACTIVITIES.—The term
‘‘person engaged in the business of conducting finan-
cial activities’’ includes, to the extent appropriate
under the laws applicable to the jurisdiction of a fi-
nancial regulator over such person—
(A) any director, officer, employee, or con-
trolling stockholder of, or agent for, any such
person;
(B) any other person who has filed or is
required to file a change-in-control notice with
the appropriate financial regulator before ac-
quiring control of such person; and
(C) any shareholder, consultant, joint ven-
ture partner, and any other person, including
an independent contractor, as determined by
the appropriate financial regulator (by regula-
tion or case-by-case) who participates in the
conduct of the affairs of such person.
(6) STATE
INSURANCE
COMMISSIONER.—The
term ‘‘State insurance commissioner’’ means any of-
ficer, agency, or other entity of any State which has
primary regulatory authority over the business of in-
surance and over any person engaged in the business
of insurance to the extent of such activities, in such
State.
(7) STATE SECURITIES ADMINISTRATOR.—The
term ‘‘State securities administrator’’ means the se-
curities commission (or any agency or office per-
forming like functions) of any State.
SEC. 112. TECHNICAL AND CONFORMING AMENDMENTS TO
OTHER ACTS.
(a) Subsection (b) of section 552a of title 5, United
States Code, is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(11);
(2) by striking the period at the end of para-
graph (12) and inserting ‘‘; or’’; and
(3) by inserting after paragraph (12) the fol-
lowing new paragraph:
‘‘(13) for recordkeeping, licensing, and other
regulatory and law enforcement purposes in accord-
ance with title I of the Financial Services Antifraud
Network Act of 2001—
‘‘(A) through a computer network or
name-relationship index maintained by the
Antifraud Subcommittee under such title; or
‘‘(B) to a multistate database maintained
by the National Association of Insurance Com-
missioners and any subsidiary or affiliate of
such association, subject to the requirements of
such title.’’.
(b) Section 1113 of the Financial Institutions Regu-
latory and Interest Rate Control Act of 1978 (12 U.S.C.
3413) is amended by adding at the end the following new
subsection:
‘‘(r) This title shall not apply to disclosure by a finan-
cial regulator represented by a member of or liaison to
the Antifraud Subcommittee of information which is sub-
ject to section 107 or 108 of the Financial Services Anti-
fraud Network Act of 2001 to the extent the disclosure
is made in accordance with the requirements of such
Act.’’.
TITLE II—SECURITIES
INDUSTRY COORDINATION
Subtitle A—Disciplinary
Information
SEC. 201. INVESTMENT ADVISERS ACT OF 1940.
Section 204 of the Investment Advisers Act of 1940
(15 U.S.C. 80b–4) is amended—
(1) by striking ‘‘Every investment’’ and insert-
ing the following:
‘‘(a) IN GENERAL.—Every investment’’; and
(2) by adding at the end the following:
‘‘(b) FILING DEPOSITORIES.—The Commission, by
rule, may require an investment adviser—
‘‘(1) to file with the Commission any fee, appli-
cation, report, or notice required to be filed by this
title or the rules issued under this title through any
entity designated by the Commission for that pur-
pose; and
‘‘(2) to pay the reasonable costs associated with
such filing and the establishment and maintenance
of the systems required by subsection (c).
‘‘(c) ACCESS TO DISCIPLINARY AND OTHER INFOR-
MATION.—
‘‘(1) MAINTENANCE OF SYSTEM TO RESPOND
TO INQUIRIES.—The Commission shall require the
entity designated by the Commission under sub-
section (b)(1)—
‘‘(A) to establish and maintain a toll-free
telephone listing or other readily accessible elec-
tronic process to receive inquiries regarding dis-
ciplinary actions and proceedings and other in-
formation involving investment advisers and
persons associated with investment advisers;
and
‘‘(B) to respond promptly to such inquir-
ies.
‘‘(2) RECOVERY
OF
COSTS.—An entity des-
ignated by the Commission under subsection (b)(1)
may charge persons, other than individual investors,
reasonable fees for responses to inquiries made
under paragraph (1).
‘‘(3) LIMITATION
ON
LIABILITY.—An entity
designated by the Commission under subsection
(b)(1) shall not have any liability to any person for
any actions taken or omitted in good faith under
this subsection.’’.
SEC. 202. SECURITIES EXCHANGE ACT OF 1934.
Subsection (i) of section 15A of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o–3) is amended to read
as follows:
‘‘(i) OBLIGATION TO MAINTAIN DISCIPLINARY AND
OTHER DATA.—
‘‘(1) MAINTENANCE OF SYSTEM TO RESPOND
TO INQUIRIES.—A registered securities association
shall—
‘‘(A) establish and maintain a toll-free tele-
phone listing or other readily accessible elec-
tronic process to receive inquiries regarding dis-
ciplinary actions and proceedings and other in-
formation involving its members and their asso-
ciated persons and regarding disciplinary ac-
tions and proceedings and other information
that has been reported to the Central Registra-
tion Depository by any registered national secu-
rities exchange involving its members and their
associated persons; and
‘‘(B) promptly respond to such inquiries.
‘‘(2) RECOVERY OF COSTS.—Such association
may charge persons, other than individual investors,
reasonable fees for responses to such inquiries.
‘‘(3) LIMITATION ON LIABILITY.—Such an asso-
ciation or exchange shall not have any liability to
any person for any actions taken or omitted in good
faith under this subsection.’’.
Subtitle B—Preventing Migration
of 
Rogue 
Financial 
Profes-
sionals to the Securities Indus-
try
SEC. 211. SECURITIES EXCHANGE ACT OF 1934.
(a) BROKERS AND DEALERS.—Section 15(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) is
amended—
(1) in paragraph (4), by striking subparagraphs
(F) and (G) and inserting the following:
‘‘(F) is subject to any order of the Commission
barring or suspending the right of the person to be
associated with a broker or dealer.
‘‘(G) has been found by a foreign financial reg-
ulatory authority to have—
‘‘(i) made or caused to be made in any ap-
plication for registration or report required to
be filed with a foreign financial regulatory au-
thority, or in any proceeding before a foreign fi-
nancial regulatory authority with respect to reg-
istration, any statement that was at the time
and in the light of the circumstances under
which it was made false or misleading with re-
spect to any material fact, or omitted to state
in any such application, report, or proceeding
any material fact that is required to be stated
therein;
‘‘(ii) violated any foreign statute or regula-
tion regarding securities, banking, thrift activi-
ties, credit union activities, insurance, or con-
tracts of sale of a commodity for future deliv-
ery, traded on or subject to the rules of a con-
tract market or any board of trade; or
‘‘(iii) aided, abetted, counseled, com-
manded, induced, or procured the violation by
any other person of any provision of any statu-
tory provisions enacted by a foreign govern-
ment, or rules or regulations thereunder, re-
garding securities, banking, thrift activities,
credit union activities, insurance, or contracts
of sale of a commodity for future delivery trad-
ed on or subject to the rules of a contract mar-
ket or any board of trade, or to have failed rea-
sonably to supervise, with a view to preventing
violations of such statutory provisions, rules,
and regulations, another person who commits
such a violation, if such other person is subject
to his supervision.
‘‘(H) is subject to any final order of a State se-
curities commission (or any agency or officer per-
forming like functions), State authority that super-
vises or examines banks, thrifts, or credit unions,
State insurance commission (or any agency or office
performing like functions), an appropriate Federal
banking agency (as defined in section 3 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813(q)), or
the National Credit Union Administration, that—
‘‘(i) bars such person from association with
an entity regulated by such commission, author-
ity, agency, or officer, or from engaging in the
business of securities, insurance, banking, thrift
activities, or credit union activities; or
‘‘(ii) constitutes a final order based on vio-
lations of any laws or regulations that prohibit
fraudulent, manipulative, or deceptive con-
duct.’’; and
(2) in paragraph (6)(A)(i), by striking ‘‘or
omission enumerated in subparagraph (A), (D), (E),
or (G)’’ and inserting ‘‘, or is subject to an order or
finding, enumerated in subparagraph (A), (D), (E),
(G), or (H)’’.
(b) MUNICIPAL SECURITIES BROKERS AND DEAL-
ERS.—Section 15B(c) of the Securities Exchange Act of
1934 (15 U.S.C. 78o–4(c)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘or omission enumerated in
subparagraph (A), (D), (E), or (G)’’ and insert-
ing ‘‘, or is subject to an order or finding, enu-
merated in subparagraph (A), (D), (E), (G), or
(H)’’; and
(B) by striking ‘‘ten’’ and inserting ‘‘10’’;
(2) in paragraph (4)—
(A) by striking ‘‘or omission enumerated in
subparagraph (A), (D), (E), or (G)’’ and insert-
ing ‘‘, or is subject to an order or finding, enu-
merated in subparagraph (A), (D), (E), (G), or
(H)’’ and
(B) by striking ‘‘ten’’ and inserting ‘‘10’’;
(c) GOVERNMENT SECURITIES BROKERS AND DEAL-
ERS.—Section 15C(c)(1) of the Securities Exchange Act
of 1934 (15 U.S.C. 78o–5(c)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘or omis-
sion enumerated in subparagraph (A), (D), (E), or
(G)’’ and inserting ‘‘, or is subject to an order or
finding, enumerated in subparagraph (A), (D), (E),
(G), or (H)’’; and
(2) in subparagraph (C), by striking ‘‘or omis-
sion enumerated in subparagraph (A), (D), (E), or
(G)’’ and inserting ‘‘, or is subject to an order or
finding, enumerated in subparagraph (A), (D), (E),
(G), or (H)’’.
(d) CLEARANCE AND SETTLEMENT.—Section 17A(c)
of the Securities Exchange Act of 1934 (15 U.S.C. 78q–
1(c)) is amended—
(1) in paragraph (3)(A), by striking ‘‘enumer-
ated in subparagraph (A), (D), (E), or (G)’’ and in-
serting ‘‘, or is subject to an order or finding, enu-
merated in subparagraph (A), (D), (E), (G), or
(H)’’; and
(2) in paragraph (4)(C)—
(A) by striking ‘‘enumerated in subpara-
graph (A), (D), (E), or (G)’’ and inserting ‘‘,
or is subject to an order or finding, enumerated
in subparagraph (A), (D), (E), (G), or (H)’’;
and
(B) by striking ‘‘ten years’’ and inserting
‘‘10 years’’.
(e) DEFINITION
OF
STATUTORY
DISQUALIFICA-
TION.—Section 3(a)(39)(F) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(39)(F)) is amended by
striking ‘‘has committed or omitted any act enumerated
in subparagraph (D), (E), or (G)’’ and inserting ‘‘has
committed or omitted any act, or is subject to an order
or finding, enumerated in subparagraph (D), (E), (G), or
(H)’’.
SEC. 212. INVESTMENT ADVISERS ACT OF 1940.
(a) AUTHORITY TO DENY OR REVOKE REGISTRA-
TION BASED ON STATE (AND OTHER GOVERNMENTAL)
ADMINISTRATIVE ACTIONS.—Section 203(e) of the Invest-
ment Advisers Act of 1940 (15 U.S.C. 80b–3(e)) is
amended by striking paragraphs (7) and (8) and inserting
the following:
‘‘(7) is subject to any order of the Commission
barring or suspending the right of the person to be
associated with an investment adviser.
‘‘(8) has been found by a foreign financial regu-
latory authority, State securities commission (or any
State agency or officer performing similar func-
tions), State authority that supervises or examines
banks, thrifts, or credit unions, State insurance com-
mission (or any State agency or officer performing
similar functions), any appropriate Federal banking
agency (as such term is defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813(q)),
or the National Credit Union Administration to
have—
‘‘(A) made or caused to be made in any
application for registration or report required to
be filed with, or in any proceeding before, the
authority, commission, or agency any statement
that was, at the time and in light of the cir-
cumstances under which it was made, false or
misleading with respect to any material fact, or
omitted to state in any application or report
filed with, or in any proceeding before, the au-
thority, commission, or agency any material
fact that is required to be stated in the applica-
tion, report, or proceeding;
‘‘(B) violated any foreign, State, or Fed-
eral statute or regulation regarding securities,
insurance, banking, thrift activities, credit
union activities, or contracts of sale of a com-
modity for future delivery traded on or subject
to the rules of a contract market or any board
of trade; or
‘‘(C) 
aided, 
abetted, 
counseled, 
com-
manded, induced, or procured the violation by
any other person of any foreign, State, or Fed-
eral statute or regulation regarding securities,
insurance, banking, thrift activities, credit
union activities, or contracts of sale of a com-
modity for future delivery traded on or subject
to the rules of a contract market or any board
of trade, or failed reasonably to supervise, with
a view to preventing violations of any such stat-
ute or regulation, another person who commits
such a violation, if the other person is subject
to his or its supervision.’’.
(b) BARS ON FELONS ASSOCIATED WITH INVEST-
MENT ADVISERS.—Section 203(f) of the Investment Ad-
visers Act of 1940 (15 U.S.C. 80b–3(f)) is amended by
inserting ‘‘or (3)’’ after ‘‘paragraph (2)’’.
Æ