H. R. 4173—559 
or until such broker or dealer has become a member 
of a national securities exchange, if such broker or 
dealer effects transactions solely on that exchange, 
unless the Commission has exempted such broker or 
dealer, by rule or order, from such membership.’’; 
(6) in section 15C(a)(2) (15 U.S.C. 78o–5(a)(2))— 
(A) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively, and adjusting the subpara-
graph margins accordingly; 
(B) in subparagraph (B), as so redesignated, by striking 
‘‘The order granting’’ and all that follows through ‘‘from 
such membership.’’; and 
(C) in the matter following subparagraph (B), as so 
redesignated, by inserting after the first sentence the fol-
lowing: ‘‘The order granting registration shall not be effec-
tive until such government securities broker or government 
securities dealer has become a member of a national securi-
ties exchange registered under section 6 of this title, or 
a securities association registered under section 15A of 
this title, unless the Commission has exempted such 
government securities broker or government securities 
dealer, by rule or order, from such membership.’’; 
(7) in section 17(b)(1)(B) (15 U.S.C. 78q(b)(1)(B)), by 
striking ‘‘15A(k) gives’’ and inserting ‘‘15A(k), give’’; and 
(8) in section 21C(c)(2) (15 U.S.C. 78u–3(c)(2)), by striking 
‘‘paragraph (1) subsection’’ and inserting ‘‘Paragraph (1)’’. 
(c) TRUST INDENTURE ACT OF 1939.—The Trust Indenture Act 
of 1939 (15 U.S.C. 77aaa et seq.) is amended— 
(1) in section 304(b) (15 U.S.C. 77ddd(b)), by striking ‘‘sec-
tion 2 of such Act’’ and inserting ‘‘section 2(a) of such Act’’; 
and 
(2) in section 317(a)(1) (15 U.S.C. 77qqq(a)(1)), by striking 
‘‘, in the’’ and inserting ‘‘in the’’. 
(d) INVESTMENT COMPANY ACT OF 1940.—The Investment Com-
pany Act of 1940 (15 U.S.C. 80a–1 et seq.) is amended— 
(1) in section 2(a)(19) (15 U.S.C. 80a–2(a)(19)), in the 
matter following subparagraph (B)(vii)— 
(A) by striking ‘‘clause (vi)’’ each place that term 
appears and inserting ‘‘clause (vii)’’; and 
(B) in each of subparagraphs (A)(vi) and (B)(vi), by 
adding ‘‘and’’ at the end of subclause (III); 
(2) in section 9(b)(4)(B) (15 U.S.C. 80a–9(b)(4)(B)), by 
adding ‘‘or’’ after the semicolon at the end; 
(3) in section 12(d)(1)(J) (15 U.S.C. 80a–12(d)(1)(J)), by 
striking ‘‘any provision of this subsection’’ and inserting ‘‘any 
provision of this paragraph’’; 
(4) in section 17(f) (15 U.S.C. 80a–17(f))— 
(A) in paragraph (4), by striking ‘‘No such member’’ 
and inserting ‘‘No member of a national securities 
exchange’’; and 
(B) in paragraph (6), by striking ‘‘company may serve’’ 
and inserting ‘‘company, may serve’’; and 
(5) 
in 
section 
61(a)(3)(B)(iii) 
(15 
U.S.C. 
80a– 
60(a)(3)(B)(iii))— 
(A) by striking ‘‘paragraph (1) of section 205’’ and 
inserting ‘‘section 205(a)(1)’’; and
H. R. 4173—560 
(B) by striking ‘‘clause (A) or (B) of that section’’ and 
inserting ‘‘paragraph (1) or (2) of section 205(b)’’. 
(e) INVESTMENT
ADVISERS
ACT
OF
1940.—The Investment 
Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended— 
(1) in section 203 (15 U.S.C. 80b–3)— 
(A) in subsection (c)(1)(A), by striking ‘‘principal busi-
ness office and’’ and inserting ‘‘principal office, principal 
place of business, and’’; and 
(B) in subsection (k)(4)(B), in the matter following 
clause (ii), by striking ‘‘principal place of business’’ and 
inserting ‘‘principal office or place of business’’; 
(2) in section 206(3) (15 U.S.C. 80b–6(3)), by adding ‘‘or’’ 
after the semicolon at the end; 
(3) in section 213(a) (15 U.S.C. 80b–13(a)), by striking 
‘‘principal place of business’’ and inserting ‘‘principal office or 
place of business’’; and 
(4) in section 222 (15 U.S.C. 80b–18a), by striking ‘‘principal 
place of business’’ each place that term appears and inserting 
‘‘principal office and place of business’’. 
SEC. 986. CONFORMING AMENDMENTS RELATING TO REPEAL OF THE 
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. 
(a) SECURITIES
EXCHANGE
ACT
OF
1934.—The Securities 
Exchange Act of 1934 (15 U.S.C. 78 et seq.) is amended— 
(1) in section 3(a)(47) (15 U.S.C. 78c(a)(47)), by striking 
‘‘the Public Utility Holding Company Act of 1935 (15 U.S.C. 
79a et seq.),’’; 
(2) in section 12(k) (15 U.S.C. 78l(k)), by amending para-
graph (7) to read as follows:
‘‘(7) DEFINITION.—For purposes of this subsection, the term 
‘emergency’ means— 
‘‘(A) a major market disturbance characterized by or 
constituting— 
‘‘(i) sudden and excessive fluctuations of securities 
prices generally, or a substantial threat thereof, that 
threaten fair and orderly markets; or 
‘‘(ii) a substantial disruption of the safe or efficient 
operation of the national system for clearance and 
settlement of transactions in securities, or a substan-
tial threat thereof; or 
‘‘(B) a major disturbance that substantially disrupts, 
or threatens to substantially disrupt— 
‘‘(i) the functioning of securities markets, invest-
ment companies, or any other significant portion or 
segment of the securities markets; or 
‘‘(ii) the transmission or processing of securities 
transactions.’’; and 
(3) in section 21(h)(2) (15 U.S.C. 78u(h)(2)), by striking 
‘‘section 18(c) of the Public Utility Holding Company Act of 
1935,’’. 
(b) TRUST INDENTURE ACT OF 1939.—The Trust Indenture Act 
of 1939 (15 U.S.C. 77aaa et seq.) is amended— 
(1) in section 303 (15 U.S.C. 77ccc), by striking paragraph 
(17) and inserting the following: 
‘‘(17) The terms ‘Securities Act of 1933’ and ‘Securities 
Exchange Act of 1934’ shall be deemed to refer, respectively,
H. R. 4173—561 
to such Acts, as amended, whether amended prior to or after 
the enactment of this title.’’; 
(2) in section 308 (15 U.S.C. 77hhh), by striking ‘‘Securities 
Act of 1933, the Securities Exchange Act of 1934, or the Public 
Utility Holding Company Act of 1935’’ each place that term 
appears and inserting ‘‘Securities Act of 1933 or the Securities 
Exchange Act of 1934’’; 
(3) in section 310 (15 U.S.C. 77jjj), by striking subsection 
(c); 
(4) in section 311 (15 U.S.C. 77kkk), by striking subsection 
(c); 
(5) in section 323(b) (15 U.S.C. 77www(b)), by striking 
‘‘Securities Act of 1933, or the Securities Exchange Act of 
1934, or the Public Utility Holding Company Act of 1935’’ 
and inserting ‘‘Securities Act of 1933 or the Securities Exchange 
Act of 1934’’; and 
(6) in section 326 (15 U.S.C. 77zzz), by striking ‘‘Securities 
Act of 1933, or the Securities Exchange Act of 1934, or the 
Public Utility Holding Company Act of 1935,’’ and inserting 
‘‘Securities Act of 1933 or the Securities Exchange Act of 1934’’. 
(c) INVESTMENT COMPANY ACT OF 1940.—The Investment Com-
pany Act of 1940 (15 U.S.C. 80a–1 et seq.) is amended— 
(1) in section 2(a)(44) (15 U.S.C. 80a–2(a)(44)), by striking 
‘‘ ‘Public Utility Holding Company Act of 1935’,’’; 
(2) in section 3(c) (15 U.S.C. 80a–3(c)), by striking para-
graph (8) and inserting the following: 
‘‘(8) [Repealed]’’; 
(3) in section 38(b) (15 U.S.C. 80a–37(b)), by striking ‘‘the 
Public Utility Holding Company Act of 1935,’’; and 
(4) in section 50 (15 U.S.C. 80a–49), by striking ‘‘the Public 
Utility Holding Company Act of 1935,’’. 
(d) INVESTMENT ADVISERS ACT
OF 1940.—Section 202(a)(21) 
of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(21)) 
is amended by striking ‘‘ ‘Public Utility Holding Company Act of 
1935’,’’. 
SEC. 987. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NON-
MATERIAL LOSSES TO THE DEPOSIT INSURANCE FUND 
FOR PURPOSES OF INSPECTOR GENERAL REVIEWS. 
(a) IN GENERAL.—Section 38(k) of the Federal Deposit Insur-
ance Act (U.S.C. 1831o(k)) is amended— 
(1) in paragraph (2), by striking subparagraph (B) and 
inserting the following: 
‘‘(B) MATERIAL LOSS DEFINED.—The term ‘material loss’ 
means any estimated loss in excess of— 
‘‘(i) $200,000,000, if the loss occurs during the 
period beginning on January 1, 2010, and ending on 
December 31, 2011; 
‘‘(ii) $150,000,000, if the loss occurs during the 
period beginning on January 1, 2012, and ending on 
December 31, 2013; and 
‘‘(iii) $50,000,000, if the loss occurs on or after 
January 1, 2014, provided that if the inspector general 
of a Federal banking agency certifies to the Committee 
on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House
H. R. 4173—562 
of Representatives that the number of projected fail-
ures of depository institutions that would require mate-
rial loss reviews for the following 12 months will be 
greater than 30 and would hinder the effectiveness 
of its oversight functions, then the definition of ‘mate-
rial loss’ shall be $75,000,000 for a duration of 1 year 
from the date of the certification.’’; 
(2) in paragraph (4)(A) by striking ‘‘the report’’ and 
inserting ‘‘any report on losses required under this subsection,’’; 
(3) by striking paragraph (6); 
(4) by redesignating paragraph (5) as paragraph (6); and 
(5) by inserting after paragraph (4) the following: 
‘‘(5) LOSSES THAT ARE NOT MATERIAL.— 
‘‘(A) SEMIANNUAL
REPORT.—For the 6-month period 
ending on March 31, 2010, and each 6-month period there-
after, the Inspector General of each Federal banking agency 
shall— 
‘‘(i) identify losses that the Inspector General esti-
mates have been incurred by the Deposit Insurance 
Fund during that 6-month period, with respect to the 
insured depository institutions supervised by the Fed-
eral banking agency; 
‘‘(ii) for each loss incurred by the Deposit Insurance 
Fund that is not a material loss, determine— 
‘‘(I) the grounds identified by the Federal 
banking agency or State bank supervisor for 
appointing the Corporation as receiver under sec-
tion 11(c)(5); and 
‘‘(II) whether any unusual circumstances exist 
that might warrant an in-depth review of the loss; 
and 
‘‘(iii) prepare and submit a written report to the 
appropriate Federal banking agency and to Congress 
on the results of any determination by the Inspector 
General, including— 
‘‘(I) an identification of any loss that warrants 
an in-depth review, together with the reasons why 
such review is warranted, or, if the Inspector Gen-
eral determines that no review is warranted, an 
explanation of such determination; and 
‘‘(II) for each loss identified under subclause 
(I) that warrants an in-depth review, the date 
by which such review, and a report on such review 
prepared in a manner consistent with reports 
under paragraph (1)(A), will be completed and sub-
mitted to the Federal banking agency and Con-
gress. 
‘‘(B) 
DEADLINE
FOR
SEMIANNUAL
REPORT.—The 
Inspector General of each Federal banking agency shall— 
‘‘(i) submit each report required under paragraph 
(A) expeditiously, and not later than 90 days after 
the end of the 6-month period covered by the report; 
and 
‘‘(ii) provide a copy of the report required under 
paragraph (A) to any Member of Congress, upon 
request.’’.
H. R. 4173—563 
(b) TECHNICAL AND CONFORMING AMENDMENT.—The heading 
for subsection (k) of section 38 of the Federal Deposit Insurance 
Act (U.S.C. 1831o(k)) is amended to read as follows: 
‘‘(k) REVIEWS
REQUIRED
WHEN
DEPOSIT
INSURANCE
FUND 
INCURS LOSSES.—’’. 
SEC. 988. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NON-
MATERIAL LOSSES TO THE NATIONAL CREDIT UNION 
SHARE INSURANCE FUND FOR PURPOSES OF INSPECTOR 
GENERAL REVIEWS. 
(a) IN GENERAL.—Section 216(j) of the Federal Credit Union 
Act (12 U.S.C. 1790d(j)) is amended to read as follows: 
‘‘(j) REVIEWS REQUIRED WHEN SHARE INSURANCE FUND EXPERI-
ENCES LOSSES.— 
‘‘(1) IN GENERAL.—If the Fund incurs a material loss with 
respect to an insured credit union, the Inspector General of 
the Board shall— 
‘‘(A) submit to the Board a written report reviewing 
the supervision of the credit union by the Administration 
(including the implementation of this section by the 
Administration), which shall include— 
‘‘(i) a description of the reasons why the problems 
of the credit union resulted in a material loss to the 
Fund; and 
‘‘(ii) recommendations for preventing any such loss 
in the future; and 
‘‘(B) submit a copy of the report under subparagraph 
(A) to— 
‘‘(i) the Comptroller General of the United States; 
‘‘(ii) the Corporation; 
‘‘(iii) in the case of a report relating to a State 
credit union, the appropriate State supervisor; and 
‘‘(iv) to any Member of Congress, upon request. 
‘‘(2) MATERIAL LOSS DEFINED.—For purposes of determining 
whether the Fund has incurred a material loss with respect 
to an insured credit union, a loss is material if it exceeds 
the sum of— 
‘‘(A) $25,000,000; and 
‘‘(B) an amount equal to 10 percent of the total assets 
of the credit union on the date on which the Board initiated 
assistance under section 208 or was appointed liquidating 
agent. 
‘‘(3) PUBLIC DISCLOSURE REQUIRED.— 
‘‘(A) IN GENERAL.—The Board shall disclose a report 
under this subsection, upon request under section 552 of 
title 5, United States Code, without excising— 
‘‘(i) any portion under section 552(b)(5) of title 
5, United States Code; or 
‘‘(ii) any information about the insured credit union 
(other than trade secrets) under section 552(b)(8) of 
title 5, United States Code. 
‘‘(B) RULE OF CONSTRUCTION.—Subparagraph (A) may 
not be construed as requiring the agency to disclose the 
name of any customer of the insured credit union (other 
than an institution-affiliated party), or information from 
which the identity of such customer could reasonably be 
ascertained.
H. R. 4173—564 
‘‘(4) LOSSES THAT ARE NOT MATERIAL.— 
‘‘(A) SEMIANNUAL
REPORT.—For the 6-month period 
ending on March 31, 2010, and each 6-month period there-
after, the Inspector General of the Board shall— 
‘‘(i) identify any losses that the Inspector General 
estimates were incurred by the Fund during such 6- 
month period, with respect to insured credit unions; 
‘‘(ii) for each loss to the Fund that is not a material 
loss, determine— 
‘‘(I) the grounds identified by the Board or 
the State official having jurisdiction over a State 
credit union for appointing the Board as the liqui-
dating agent for any Federal or State credit union; 
and 
‘‘(II) whether any unusual circumstances exist 
that might warrant an in-depth review of the loss; 
and 
‘‘(iii) prepare and submit a written report to the 
Board and to Congress on the results of the determina-
tions of the Inspector General that includes— 
‘‘(I) an identification of any loss that warrants 
an in-depth review, and the reasons such review 
is warranted, or if the Inspector General deter-
mines that no review is warranted, an explanation 
of such determination; and 
‘‘(II) for each loss identified in subclause (I) 
that warrants an in-depth review, the date by 
which such review, and a report on the review 
prepared in a manner consistent with reports 
under paragraph (1)(A), will be completed. 
‘‘(B) 
DEADLINE
FOR
SEMIANNUAL
REPORT.—The 
Inspector General of the Board shall— 
‘‘(i) submit each report required under subpara-
graph (A) expeditiously, and not later than 90 days 
after the end of the 6-month period covered by the 
report; and 
‘‘(ii) provide a copy of the report required under 
subparagraph (A) to any Member of Congress, upon 
request. 
‘‘(5) GAO REVIEW.—The Comptroller General of the United 
States shall, under such conditions as the Comptroller General 
determines to be appropriate— 
‘‘(A) review each report made under paragraph (1), 
including the extent to which the Inspector General of 
the Board complied with the requirements under section 
8L of the Inspector General Act of 1978 (5 U.S.C. App.) 
with respect to each such report; and 
‘‘(B) recommend improvements to the supervision of 
insured credit unions (including improvements relating to 
the implementation of this section).’’. 
SEC. 989. GOVERNMENT ACCOUNTABILITY OFFICE STUDY ON PROPRI-
ETARY TRADING. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘covered entity’’ means— 
(A) an insured depository institution, an affiliate of 
an insured depository institution, a bank holding company,
H. R. 4173—565 
a financial holding company, or a subsidiary of a bank 
holding company or a financial holding company, as those 
terms are defined in the Bank Holding Company Act of 
1956 (12 U.S.C. 1841 et seq.); and 
(B) any other entity, as the Comptroller General of 
the United States may determine; and 
(2) the term ‘‘proprietary trading’’ means the act of a cov-
ered entity investing as a principal in securities, commodities, 
derivatives, hedge funds, private equity firms, or such other 
financial products or entities as the Comptroller General may 
determine. 
(b) STUDY.— 
(1) IN GENERAL.—The Comptroller General of the United 
States shall conduct a study regarding the risks and conflicts 
associated with proprietary trading by and within covered enti-
ties, including an evaluation of— 
(A) whether proprietary trading presents a material 
systemic risk to the stability of the United States financial 
system, and if so, the costs and benefits of options for 
mitigating such systemic risk; 
(B) whether proprietary trading presents material risks 
to the safety and soundness of the covered entities that 
engage in such activities, and if so, the costs and benefits 
of options for mitigating such risks; 
(C) whether proprietary trading presents material con-
flicts of interest between covered entities that engage in 
proprietary trading and the clients of the institutions who 
use the firm to execute trades or who rely on the firm 
to manage assets, and if so, the costs and benefits of 
options for mitigating such conflicts of interest; 
(D) whether adequate disclosure regarding the risks 
and conflicts of proprietary trading is provided to the 
depositors, trading and asset management clients, and 
investors of covered entities that engage in proprietary 
trading, and if not, the costs and benefits of options for 
the improvement of such disclosure; and 
(E) whether the banking, securities, and commodities 
regulators of institutions that engage in proprietary trading 
have in place adequate systems and controls to monitor 
and contain any risks and conflicts of interest related to 
proprietary trading, and if not, the costs and benefits of 
options for the improvement of such systems and controls. 
(2) CONSIDERATIONS.—In carrying out the study required 
under paragraph (1), the Comptroller General shall consider— 
(A) current practice relating to proprietary trading; 
(B) the advisability of a complete ban on proprietary 
trading; 
(C) limitations on the scope of activities that covered 
entities may engage in with respect to proprietary trading; 
(D) the advisability of additional capital requirements 
for covered entities that engage in proprietary trading; 
(E) enhanced restrictions on transactions between 
affiliates related to proprietary trading; 
(F) enhanced accounting disclosures relating to propri-
etary trading; 
(G) enhanced public disclosure relating to proprietary 
trading; and
H. R. 4173—566 
(H) any other options the Comptroller General deems 
appropriate. 
(c) REPORT
TO CONGRESS.—Not later than 15 months after 
the date of enactment of this Act, the Comptroller General shall 
submit a report to Congress on the results of the study conducted 
under subsection (b). 
(d) ACCESS BY COMPTROLLER GENERAL.—For purposes of con-
ducting the study required under subsection (b), the Comptroller 
General shall have access, upon request, to any information, data, 
schedules, books, accounts, financial records, reports, files, elec-
tronic communications, or other papers, things, or property 
belonging to or in use by a covered entity that engages in propri-
etary trading, and to the officers, directors, employees, independent 
public accountants, financial advisors, staff, and agents and rep-
resentatives of a covered entity (as related to the activities of 
the agent or representative on behalf of the covered entity), at 
such reasonable times as the Comptroller General may request. 
The Comptroller General may make and retain copies of books, 
records, accounts, and other records, as the Comptroller General 
deems appropriate. 
(e) CONFIDENTIALITY OF REPORTS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
Comptroller General may not disclose information regarding— 
(A) any proprietary trading activity of a covered entity, 
unless such information is disclosed at a level of generality 
that does not reveal the investment or trading position 
or strategy of the covered entity for any specific security, 
commodity, derivative, or other investment or financial 
product; or 
(B) any individual interviewed by the Comptroller Gen-
eral for purposes of the study under subsection (b), unless 
such information is disclosed at a level of generality that 
does not reveal— 
(i) the name of or identifying details relating to 
such individual; or 
(ii) in the case of an individual who is an employee 
of a third party that provides professional services 
to a covered entity believed to be engaged in propri-
etary trading, the name of or any identifying details 
relating to such third party. 
(2) EXCEPTIONS.—The Comptroller General may disclose 
the information described in paragraph (1)— 
(A) to a department, agency, or official of the Federal 
Government, for official use, upon request; 
(B) to a committee of Congress, upon request; and 
(C) to a court, upon an order of such court. 
SEC. 989A. SENIOR INVESTOR PROTECTIONS. 
(a) DEFINITIONS.—As used in this section— 
(1) the term ‘‘eligible entity’’ means— 
(A) a securities commission (or any agency or office 
performing like functions) of a State that the Office deter-
mines has adopted rules on the appropriate use of designa-
tions in the offer or sale of securities or the provision 
of investment advice that meet or exceed the minimum 
requirements of the NASAA Model Rule on the Use of
H. R. 4173—567 
Senior-Specific Certifications and Professional Designations 
(or any successor thereto); 
(B) the insurance commission (or any agency or office 
performing like functions) of any State that the Office 
determines has— 
(i) adopted rules on the appropriate use of designa-
tions in the sale of insurance products that, to the 
extent practicable, conform to the minimum require-
ments of the National Association of Insurance 
Commissioners Model Regulation on the Use of Senior- 
Specific Certifications and Professional Designations 
in the Sale of Life Insurance and Annuities (or any 
successor thereto); and 
(ii) adopted rules with respect to fiduciary or suit-
ability requirements in the sale of annuities that meet 
or exceed the minimum requirements established by 
the Suitability in Annuity Transactions Model Regula-
tion of the National Association of Insurance Commis-
sioners (or any successor thereto); or 
(C) a consumer protection agency of any State, if— 
(i) the securities commission (or any agency or 
office performing like functions) of the State is eligible 
under subparagraph (A); or 
(ii) the insurance commission (or any agency or 
office performing like functions) of the State is eligible 
under subparagraph (B); 
(2) the term ‘‘financial product’’ means a security, an insur-
ance product (including an insurance product that pays a 
return, whether fixed or variable), a bank product, and a loan 
product; 
(3) the term ‘‘misleading designation’’— 
(A) means a certification, professional designation, or 
other purported credential that indicates or implies that 
a salesperson or adviser has special certification or training 
in advising or servicing seniors; and 
(B) does not include a certification, professional des-
ignation, license, or other credential that— 
(i) was issued by or obtained from an academic 
institution having regional accreditation; 
(ii) meets the standards for certifications and 
professional designations outlined by the NASAA 
Model Rule on the Use of Senior-Specific Certifications 
and Professional Designations (or any successor 
thereto) or by the Model Regulations on the Use of 
Senior-Specific Certifications and Professional Designa-
tions in the Sale of Life Insurance and Annuities, 
adopted by the National Association of Insurance 
Commissioners (or any successor thereto); or 
(iii) was issued by or obtained from a State; 
(4) the term ‘‘misleading or fraudulent marketing’’ means 
the use of a misleading designation by a person that sells 
to or advises a senior in connection with the sale of a financial 
product; 
(5) the term ‘‘NASAA’’ means the North American Securi-
ties Administrators Association; 
(6) the term ‘‘Office’’ means the Office of Financial Literacy 
of the Bureau;
H. R. 4173—568 
(7) the term ‘‘senior’’ means any individual who has 
attained the age of 62 years or older; and 
(8) the term ‘‘State’’ has the same meaning as in section 
3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)). 
(b) GRANTS TO STATES FOR ENHANCED PROTECTION OF SENIORS 
FROM BEING MISLED BY FALSE DESIGNATIONS.—The Office shall 
establish a program under which the Office may make grants 
to States or eligible entities— 
(1) to hire staff to identify, investigate, and prosecute 
(through civil, administrative, or criminal enforcement actions) 
cases involving misleading or fraudulent marketing; 
(2) to fund technology, equipment, and training for regu-
lators, prosecutors, and law enforcement officers, in order to 
identify salespersons and advisers who target seniors through 
the use of misleading designations; 
(3) to fund technology, equipment, and training for prosecu-
tors to increase the successful prosecution of salespersons and 
advisers who target seniors with the use of misleading designa-
tions; 
(4) to provide educational materials and training to regu-
lators on the appropriateness of the use of designations by 
salespersons and advisers in connection with the sale and mar-
keting of financial products; 
(5) to provide educational materials and training to seniors 
to increase awareness and understanding of misleading or 
fraudulent marketing; 
(6) to develop comprehensive plans to combat misleading 
or fraudulent marketing of financial products to seniors; and 
(7) to enhance provisions of State law to provide protection 
for seniors against misleading or fraudulent marketing. 
(c) APPLICATIONS.—A State or eligible entity desiring a grant 
under this section shall submit an application to the Office, in 
such form and in such a manner as the Office may determine, 
that includes— 
(1) a proposal for activities to protect seniors from mis-
leading or fraudulent marketing that are proposed to be funded 
using a grant under this section, including— 
(A) an identification of the scope of the problem of 
misleading or fraudulent marketing in the State; 
(B) a description of how the proposed activities would— 
(i) protect seniors from misleading or fraudulent 
marketing in the sale of financial products, including 
by proactively identifying victims of misleading and 
fraudulent marketing who are seniors; 
(ii) assist in the investigation and prosecution of 
those using misleading or fraudulent marketing; and 
(iii) discourage and reduce cases of misleading or 
fraudulent marketing; and 
(C) a description of how the proposed activities would 
be coordinated with other State efforts; and 
(2) any other information, as the Office determines is appro-
priate. 
(d) PERFORMANCE
OBJECTIVES
AND
REPORTING
REQUIRE-
MENTS.—The Office may establish such performance objectives and 
reporting requirements for States and eligible entities receiving 
a grant under this section as the Office determines are necessary
H. R. 4173—569 
to carry out and assess the effectiveness of the program under 
this section. 
(e) MAXIMUM AMOUNT.—The amount of a grant under this 
section may not exceed— 
(1) $500,000 for each of 3 consecutive fiscal years, if the 
recipient is a State, or an eligible entity of a State, that has 
adopted rules— 
(A) on the appropriate use of designations in the offer 
or sale of securities or investment advice that meet or 
exceed the minimum requirements of the NASAA Model 
Rule on the Use of Senior-Specific Certifications and Profes-
sional Designations (or any successor thereto); 
(B) on the appropriate use of designations in the sale 
of insurance products that, to the extent practicable, con-
form to the minimum requirements of the National Associa-
tion of Insurance Commissioners Model Regulation on the 
Use of Senior-Specific Certifications and Professional Des-
ignations in the Sale of Life Insurance and Annuities (or 
any successor thereto); and 
(C) with respect to fiduciary or suitability requirements 
in the sale of annuities that meet or exceed the minimum 
requirements established by the Suitability in Annuity 
Transactions Model Regulation of the National Association 
of Insurance Commissioners (or any successor thereto); and 
(2) $100,000 for each of 3 consecutive fiscal years, if the 
recipient is a State, or an eligible entity of a State, that has 
adopted— 
(A) rules on the appropriate use of designations in 
the offer or sale of securities or investment advice that 
meet or exceed the minimum requirements of the NASAA 
Model Rule on the Use of Senior-Specific Certifications 
and Professional Designations (or any successor thereto); 
or 
(B) rules— 
(i) on the appropriate use of designations in the 
sale of insurance products that, to the extent prac-
ticable, conform to the minimum requirements of the 
National Association of Insurance Commissioners 
Model Regulation on the Use of Senior-Specific Certifi-
cations and Professional Designations in the Sale of 
Life Insurance and Annuities (or any successor 
thereto); and 
(ii) with respect to fiduciary or suitability require-
ments in the sale of annuities that meet or exceed 
the minimum requirements established by the Suit-
ability in Annuity Transactions Model Regulation of 
the National Association of Insurance Commissioners 
(or any successor thereto). 
(f) SUBGRANTS.—A State or eligible entity that receives a grant 
under this section may make a subgrant, as the State or eligible 
entity determines is necessary to carry out the activities funded 
using a grant under this section. 
(g) REAPPLICATION.—A State or eligible entity that receives 
a grant under this section may reapply for a grant under this 
section, notwithstanding the limitations on grant amounts under 
subsection (e).
H. R. 4173—570 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section, $8,000,000 for each 
of fiscal years 2011 through 2015. 
SEC. 989B. DESIGNATED FEDERAL ENTITY INSPECTORS GENERAL 
INDEPENDENCE. 
Section 8G of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended— 
(1) in subsection (a)(4)— 
(A) in the matter preceding subparagraph (A), by 
inserting ‘‘the board or commission of the designated Fed-
eral entity, or in the event the designated Federal entity 
does not have a board or commission,’’ after ‘‘means’’; 
(B) in subparagraph (A), by striking ‘‘and’’ after the 
semicolon; and 
(C) by adding after subparagraph (B) the following: 
‘‘(C) with respect to the Federal Labor Relations 
Authority, such term means the members of the Authority 
(described under section 7104 of title 5, United States 
Code); 
‘‘(D) with respect to the National Archives and Records 
Administration, such term means the Archivist of the 
United States; 
‘‘(E) with respect to the National Credit Union 
Administration, such term means the National Credit 
Union Administration Board (described under section 102 
of the Federal Credit Union Act (12 U.S.C. 1752a); 
‘‘(F) with respect to the National Endowment of the 
Arts, such term means the National Council on the Arts; 
‘‘(G) with respect to the National Endowment for the 
Humanities, such term means the National Council on 
the Humanities; and 
‘‘(H) with respect to the Peace Corps, such term means 
the Director of the Peace Corps;’’; and 
(2) in subsection (h), by inserting ‘‘if the designated Federal 
entity is not a board or commission, include’’ after ‘‘designated 
Federal entities and’’. 
SEC. 989C. STRENGTHENING INSPECTOR GENERAL ACCOUNTABILITY. 
Section 5(a) of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended— 
(1) in paragraph (12), by striking ‘‘and’’ after the semicolon; 
(2) in paragraph (13), by striking the period and inserting 
a semicolon; and 
(3) by adding at the end the following: 
‘‘(14)(A) an appendix containing the results of any peer 
review conducted by another Office of Inspector General during 
the reporting period; or 
‘‘(B) if no peer review was conducted within that reporting 
period, a statement identifying the date of the last peer review 
conducted by another Office of Inspector General; 
‘‘(15) a list of any outstanding recommendations from any 
peer review conducted by another Office of Inspector General 
that have not been fully implemented, including a statement 
describing the status of the implementation and why 
implementation is not complete; and 
‘‘(16) a list of any peer reviews conducted by the Inspector 
General of another Office of the Inspector General during the
H. R. 4173—571 
reporting period, including a list of any outstanding rec-
ommendations made from any previous peer review (including 
any peer review conducted before the reporting period) that 
remain outstanding or have not been fully implemented.’’. 
SEC. 989D. REMOVAL OF INSPECTORS GENERAL OF DESIGNATED FED-
ERAL ENTITIES. 
Section 8G(e) of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended— 
(1) by redesignating the sentences following ‘‘(e)’’ as para-
graph (2); and 
(2) by striking ‘‘(e)’’ and inserting the following: 
‘‘(e)(1) In the case of a designated Federal entity for which 
a board or commission is the head of the designated Federal entity, 
a removal under this subsection may only be made upon the written 
concurrence of a 2⁄3 majority of the board or commission.’’. 
SEC. 989E. ADDITIONAL OVERSIGHT OF FINANCIAL REGULATORY 
SYSTEM. 
(a) COUNCIL
OF INSPECTORS GENERAL
ON FINANCIAL OVER-
SIGHT.— 
(1) ESTABLISHMENT AND MEMBERSHIP.—There is established 
a Council of Inspectors General on Financial Oversight (in 
this section referred to as the ‘‘Council of Inspectors General’’) 
chaired by the Inspector General of the Department of the 
Treasury and composed of the inspectors general of the fol-
lowing: 
(A) The Board of Governors of the Federal Reserve 
System. 
(B) The Commodity Futures Trading Commission. 
(C) The Department of Housing and Urban Develop-
ment. 
(D) The Department of the Treasury. 
(E) The Federal Deposit Insurance Corporation. 
(F) The Federal Housing Finance Agency. 
(G) The National Credit Union Administration. 
(H) The Securities and Exchange Commission. 
(I) The Troubled Asset Relief Program (until the termi-
nation of the authority of the Special Inspector General 
for such program under section 121(k) of the Emergency 
Economic Stabilization Act of 2008 (12 U.S.C. 5231(k))). 
(2) DUTIES.— 
(A) MEETINGS.—The Council of Inspectors General 
shall meet not less than once each quarter, or more fre-
quently if the chair considers it appropriate, to facilitate 
the sharing of information among inspectors general and 
to discuss the ongoing work of each inspector general who 
is a member of the Council of Inspectors General, with 
a focus on concerns that may apply to the broader financial 
sector and ways to improve financial oversight. 
(B) ANNUAL REPORT.—Each year the Council of Inspec-
tors General shall submit to the Council and to Congress 
a report including— 
(i) for each inspector general who is a member 
of the Council of Inspectors General, a section within 
the exclusive editorial control of such inspector general 
that highlights the concerns and recommendations of 
such inspector general in such inspector general’s
H. R. 4173—572 
ongoing and completed work, with a focus on issues 
that may apply to the broader financial sector; and 
(ii) a summary of the general observations of the 
Council of Inspectors General based on the views 
expressed by each inspector general as required by 
clause (i), with a focus on measures that should be 
taken to improve financial oversight. 
(3) WORKING GROUPS TO EVALUATE COUNCIL.— 
(A) CONVENING
A
WORKING
GROUP.—The Council of 
Inspectors General may, by majority vote, convene a 
Council of Inspectors General Working Group to evaluate 
the effectiveness and internal operations of the Council. 
(B) PERSONNEL AND RESOURCES.—The inspectors gen-
eral who are members of the Council of Inspectors General 
may detail staff and resources to a Council of Inspectors 
General Working Group established under this paragraph 
to enable it to carry out its duties. 
(C) 
REPORTS.—A 
Council 
of 
Inspectors 
General 
Working Group established under this paragraph shall 
submit regular reports to the Council and to Congress 
on its evaluations pursuant to this paragraph. 
(b) RESPONSE
TO REPORT
BY COUNCIL.—The Council shall 
respond to the concerns raised in the report of the Council of 
Inspectors General under subsection (a)(2)(B) for such year. 
SEC. 989F. GAO STUDY OF PERSON TO PERSON LENDING. 
(a) STUDY.— 
(1) IN GENERAL.—The Comptroller General of the United 
States shall conduct a study of person to person lending to 
determine the optimal Federal regulatory structure. 
(2) CONSULTATION.—In conducting the study required 
under paragraph (1), the Comptroller General shall consult 
with Federal banking agencies, the Commission, consumer 
groups, outside experts, and the person to person lending 
industry. 
(3) CONTENT OF STUDY.—The study required under para-
graph (1) shall include an examination of— 
(A) the regulatory structure as it exists on the date 
of enactment of this Act, as determined by the Commission, 
with particular attention to— 
(i) the application of the Securities Act of 1933 
to person to person lending platforms; 
(ii) the posting of consumer loan information on 
the EDGAR database of the Commission; and 
(iii) the treatment of privately held person to per-
son lending platforms as public companies; 
(B) the State and other Federal regulators responsible 
for the oversight and regulation of person to person lending 
markets; 
(C) any Federal, State, or local government or private 
studies of person to person lending completed or in progress 
on the date of enactment of this Act; 
(D) consumer privacy and data protections, minimum 
credit standards, anti-money laundering and risk manage-
ment in the regulatory structure as it exists on the date 
of enactment of this Act, and whether additional or alter-
native safeguards are needed; and
H. R. 4173—573 
(E) the uses of person to person lending. 
(b) REPORT.— 
(1) IN
GENERAL.—Not later than 1 year after the date 
of enactment of this Act, the Comptroller General shall submit 
a report on the study required under subsection (a) to the 
Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the House 
of Representatives. 
(2) CONTENT OF REPORT.—The report required under para-
graph 
(1) 
shall 
include 
alternative 
regulatory 
options, 
including— 
(A) the involvement of other Federal agencies; and 
(B) alternative approaches by the Commission and rec-
ommendations on whether the alternative approaches are 
effective. 
SEC. 989G. EXEMPTION FOR NONACCELERATED FILERS. 
(a) EXEMPTION.—Section 404 of the Sarbanes-Oxley Act of 2002 
is amended by adding at the end the following: 
‘‘(c) EXEMPTION FOR SMALLER ISSUERS.—Subsection (b) shall 
not apply with respect to any audit report prepared for an issuer 
that is neither a ‘large accelerated filer’ nor an ‘accelerated filer’ 
as those terms are defined in Rule 12b–2 of the Commission (17 
C.F.R. 240.12b–2).’’. 
(b) STUDY.—The Securities and Exchange Commission shall 
conduct a study to determine how the Commission could reduce 
the burden of complying with section 404(b) of the Sarbanes-Oxley 
Act of 2002 for companies whose market capitalization is between 
$75,000,000 and $250,000,000 for the relevant reporting period 
while maintaining investor protections for such companies. The 
study shall also consider whether any such methods of reducing 
the compliance burden or a complete exemption for such companies 
from compliance with such section would encourage companies to 
list on exchanges in the United States in their initial public 
offerings. Not later than 9 months after the date of the enactment 
of this subtitle, the Commission shall transmit a report of such 
study to Congress. 
SEC. 
989H. 
CORRECTIVE 
RESPONSES 
BY 
HEADS 
OF 
CERTAIN 
ESTABLISHMENTS TO DEFICIENCIES IDENTIFIED BY 
INSPECTORS GENERAL. 
The Chairman of the Board of Governors of the Federal Reserve 
System, the Chairman of the Commodity Futures Trading Commis-
sion, the Chairman of the National Credit Union Administration, 
the Director of the Pension Benefit Guaranty Corporation, and 
the Chairman of the Securities and Exchange Commission shall 
each— 
(1) take action to address deficiencies identified by a report 
or investigation of the Inspector General of the establishment 
concerned; or 
(2) certify to both Houses of Congress that no action is 
necessary or appropriate in connection with a deficiency 
described in paragraph (1). 
SEC. 989I. GAO STUDY REGARDING EXEMPTION FOR SMALLER 
ISSUERS. 
(a) STUDY REGARDING EXEMPTION FOR SMALLER ISSUERS.—The 
Comptroller General of the United States shall carry out a study
H. R. 4173—574 
on the impact of the amendments made by this Act to section 
404(b) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262(b)), which 
shall include an analysis of— 
(1) whether issuers that are exempt from such section 
404(b) have fewer or more restatements of published accounting 
statements than issuers that are required to comply with such 
section 404(b); 
(2) the cost of capital for issuers that are exempt from 
such section 404(b) compared to the cost of capital for issuers 
that are required to comply with such section 404(b); 
(3) whether there is any difference in the confidence of 
investors in the integrity of financial statements of issuers 
that comply with such section 404(b) and issuers that are 
exempt from compliance with such section 404(b); 
(4) whether issuers that do not receive the attestation 
for internal controls required under such section 404(b) should 
be required to disclose the lack of such attestation to investors; 
and 
(5) the costs and benefits to issuers that are exempt from 
such section 404(b) that voluntarily have obtained the attesta-
tion of an independent auditor. 
(b) REPORT.—Not later than 3 years after the date of enactment 
of this Act, the Comptroller General shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
a report on the results of the study required under subsection 
(a). 
SEC. 989J. FURTHER PROMOTING THE ADOPTION OF THE NAIC MODEL 
REGULATIONS THAT ENHANCE PROTECTION OF SENIORS 
AND OTHER CONSUMERS. 
(a) IN GENERAL.—The Commission shall treat as exempt securi-
ties described under section 3(a)(8) of the Securities Act of 1933 
(15 U.S.C. 77c(a)(8)) any insurance or endowment policy or annuity 
contract or optional annuity contract— 
(1) the value of which does not vary according to the 
performance of a separate account; 
(2) that— 
(A) satisfies standard nonforfeiture laws or similar 
requirements of the applicable State at the time of issue; 
or 
(B) in the absence of applicable standard nonforfeiture 
laws or requirements, satisfies the Model Standard Nonfor-
feiture Law for Life Insurance or Model Standard Nonfor-
feiture Law for Individual Deferred Annuities, or any suc-
cessor model law, as published by the National Association 
of Insurance Commissioners; and 
(3) that is issued— 
(A) on and after June 16, 2013, in a State, or issued 
by an insurance company that is domiciled in a State, 
that— 
(i) adopts rules that govern suitability require-
ments in the sale of an insurance or endowment policy 
or annuity contract or optional annuity contract, which 
shall substantially meet or exceed the minimum 
requirements established by the Suitability in Annuity 
Transactions 
Model 
Regulation 
adopted 
by 
the
H. R. 4173—575 
National Association of Insurance Commissioners in 
March 2010; and 
(ii) adopts rules that substantially meet or exceed 
the minimum requirements of any successor modifica-
tions to the model regulations described in subpara-
graph (A) within 5 years of the adoption by the Associa-
tion of any further successors thereto; or 
(B) by an insurance company that adopts and imple-
ments practices on a nationwide basis for the sale of any 
insurance or endowment policy or annuity contract or 
optional annuity contract that meet or exceed the minimum 
requirements established by the National Association of 
Insurance Commissioners Suitability in Annuity Trans-
actions Model Regulation (Model 275), and any successor 
thereto, and is therefore subject to examination by the 
State of domicile of the insurance company, or by any 
other State where the insurance company conducts sales 
of such products, for the purpose of monitoring compliance 
under this section. 
(b) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed to affect whether any insurance or endowment policy 
or annuity contract or optional annuity contract that is not described 
in this section is or is not an exempt security under section 3(a)(8) 
of the Securities Act of 1933 (15 U.S.C. 77c(a)(8)). 
Subtitle J—Securities and Exchange 
Commission Match Funding 
SEC. 991. SECURITIES AND EXCHANGE COMMISSION MATCH FUNDING. 
(a) MATCH FUNDING AUTHORITY.— 
(1) AMENDMENTS.—Section 31 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78ee) is amended— 
(A) by striking subsection (a) and inserting the fol-
lowing: 
‘‘(a) RECOVERY
OF COSTS
OF ANNUAL APPROPRIATION.—The 
Commission shall, in accordance with this section, collect trans-
action fees and assessments that are designed to recover the costs 
to the Government of the annual appropriation to the Commission 
by Congress.’’; 
(B) in subsection (e)(2), by striking ‘‘September 30’’ 
and inserting ‘‘September 25’’; 
(C) in subsection (g), by striking ‘‘April 30 of the fiscal 
year preceding the fiscal year to which such rate applies’’ 
and inserting ‘‘30 days after the date on which an Act 
making a regular appropriation to the Commission for such 
fiscal year is enacted’’; 
(D) by striking subsection (j) and inserting the fol-
lowing: 
‘‘(j) ADJUSTMENTS TO FEE RATES.— 
‘‘(1) ANNUAL ADJUSTMENT.—Subject to subsections (i)(1)(B) 
and (k), for each fiscal year, the Commission shall by order 
adjust each of the rates applicable under subsections (b) and 
(c) for such fiscal year to a uniform adjusted rate that, when 
applied to the baseline estimate of the aggregate dollar amount 
of sales for such fiscal year, is reasonably likely to produce
H. R. 4173—576 
aggregate fee collections under this section (including assess-
ments collected under subsection (d) of this section) that are 
equal to the regular appropriation to the Commission by Con-
gress for such fiscal year. 
‘‘(2) 
MID-YEAR
ADJUSTMENT.—Subject 
to 
subsections 
(i)(1)(B) and (k), for each fiscal year, the Commission shall 
determine, by March 1 of such fiscal year, whether, based 
on the actual aggregate dollar volume of sales during the first 
5 months of such fiscal year, the baseline estimate of the 
aggregate dollar volume of sales used under paragraph (1) 
for such fiscal year is reasonably likely to be 10 percent (or 
more) greater or less than the actual aggregate dollar volume 
of sales for such fiscal year. If the Commission so determines, 
the Commission shall by order, no later than March 1, adjust 
each of the rates applicable under subsections (b) and (c) for 
such fiscal year to a uniform adjusted rate that, when applied 
to the revised estimate of the aggregate dollar amount of sales 
for the remainder of such fiscal year, is reasonably likely to 
produce aggregate fee collections under this section (including 
fees collected during such five-month period and assessments 
collected under subsection (d) of this section) that are equal 
to the regular appropriation to the Commission by Congress 
for such fiscal year. In making such revised estimate, the 
Commission shall, after consultation with the Congressional 
Budget Office and the Office of Management and Budget, use 
the same methodology required by subsection (l). 
‘‘(3) REVIEW.—In exercising its authority under this sub-
section, the Commission shall not be required to comply with 
the provisions of section 553 of title 5, United States Code. 
An adjusted rate prescribed under paragraph (1) or (2) and 
published under subsection (g) shall not be subject to judicial 
review. 
‘‘(4) EFFECTIVE DATE.— 
‘‘(A) ANNUAL
ADJUSTMENT.—Subject to subsections 
(i)(1)(B) and (k), an adjusted rate prescribed under para-
graph (1) shall take effect on the later of— 
‘‘(i) the first day of the fiscal year to which such 
rate applies; or 
‘‘(ii) 60 days after the date on which an Act making 
a regular appropriation to the Commission for such 
fiscal year is enacted. 
‘‘(B) MID-YEAR
ADJUSTMENT.—An adjusted rate pre-
scribed under paragraph (2) shall take effect on April 1 
of the fiscal year to which such rate applies.’’; 
(E) in subsection (k), by striking ‘‘30 days’’ and 
inserting ‘‘60 days’’; and 
(F) in subsection (l), by striking ‘‘DEFINITIONS.—’’ and 
all that follows through ‘‘SALES.—The baseline’’ and 
inserting ‘‘BASELINE ESTIMATE OF THE AGGREGATE DOLLAR 
AMOUNT OF SALES.—The baseline’’. 
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on the later of— 
(A) October 1, 2011; or 
(B) the date of enactment of an Act making a regular 
appropriation to the Commission for fiscal year 2012. 
(b) AMENDMENTS TO REGISTRATION FEE PROVISIONS.—
H. R. 4173—577 
(1) SECTION 6(b) OF THE SECURITIES ACT OF 1933.—Section 
6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) is amended— 
(A) by striking ‘‘offsetting’’ each place that term 
appears and inserting ‘‘fee’’; 
(B) by striking paragraphs (1), (3), (4), (6), (8), and 
(9); 
(C) by redesignating paragraph (2) as paragraph (1); 
(D) by redesignating paragraph (5) as paragraph (2); 
(E) by redesignating paragraph (7) as paragraph (3); 
(F) by redesignating paragraph (10) as paragraph (5); 
(G) by redesignating paragraph (11) as paragraph (6); 
(H) in paragraph (1), as so redesignated, by striking 
‘‘paragraph (5) or (6).’’ and inserting ‘‘paragraph (2).’’; 
(I) in paragraph (2), as so redesignated— 
(i) by striking ‘‘of the fiscal years 2003 through 
2011’’ and inserting ‘‘fiscal year’’; and 
(ii) by striking ‘‘paragraph (2)’’ and inserting ‘‘para-
graph (1)’’; 
(J) by inserting after paragraph (3), as so redesignated, 
the following: 
‘‘(4) REVIEW
AND
EFFECTIVE
DATE.—In exercising its 
authority under this subsection, the Commission shall not be 
required to comply with the provisions of section 553 of title 
5, United States Code. An adjusted rate prescribed under para-
graph (2) and published under paragraph (5) shall not be sub-
ject to judicial review. An adjusted rate prescribed under para-
graph (2) shall take effect on the first day of the fiscal year 
to which such rate applies.’’; 
(K) in paragraph (5), as redesignated, by striking ‘‘April 
30’’ and inserting ‘‘August 31’’; 
(L) in paragraph (6), as so redesignated— 
(i) by striking ‘‘of the fiscal years 2002 through 
2011’’ and inserting ‘‘fiscal year’’; and 
(ii) by inserting at the end of the table in subpara-
graph (A) the following: 
‘‘2012 ...................................................
$425,000,000 
2013 .....................................................
$455,000,000 
2014 .....................................................
$485,000,000 
2015 .....................................................
$515,000,000 
2016 .....................................................
$550,000,000 
2017 .....................................................
$585,000,000 
2018 .....................................................
$620,000,000 
2019 .....................................................
$660,000,000 
2020 .....................................................
$705,000,000 
2021 and each fiscal year thereafter 
An amount that is equal to the target 
fee collection amount for the prior fis-
cal year, adjusted by the rate of infla-
tion.’’. 
(2) SECTION 13(e) OF THE SECURITIES EXCHANGE ACT OF 
1934.—Section 13(e) of the Securities Exchange Act of 1934 
(15 U.S.C. 78m(e)) is amended— 
(A) in paragraph (3), by striking ‘‘paragraphs (5) and 
(6)’’ and inserting ‘‘paragraph (4)’’; 
(B) by striking paragraphs (4), (5), and (6); 
(C) by inserting after paragraph (3) the following:
H. R. 4173—578 
‘‘(4) ANNUAL
ADJUSTMENT.—For each fiscal year, the 
Commission shall by order adjust the rate required by para-
graph (3) for such fiscal year to a rate that is equal to the 
rate (expressed in dollars per million) that is applicable under 
section 6(b) of the Securities Act of 1933 for such fiscal year. 
‘‘(5) FEE COLLECTIONS.—Fees collected pursuant to this sub-
section for fiscal year 2012 and each fiscal year thereafter 
shall be deposited and credited as general revenue of the 
Treasury and shall not be available for obligation. 
‘‘(6) EFFECTIVE
DATE; 
PUBLICATION.—In exercising its 
authority under this subsection, the Commission shall not be 
required to comply with the provisions of section 553 of title 
5, United States Code. An adjusted rate prescribed under para-
graph (4) shall be published and take effect in accordance 
with section 6(b) of the Securities Act of 1933 (15 U.S.C. 
77f(b)).’’; and 
(D) by striking paragraphs (8), (9), and (10). 
(3) SECTION 14(g) OF THE SECURITIES EXCHANGE ACT OF 
1934.—Section 14(g) of the Securities Exchange Act of 1934 
(15 U.S.C. 78n(g)) is amended— 
(A) in paragraph (1), by striking ‘‘paragraphs (5) and 
(6)’’ each time that term appears and inserting ‘‘paragraph 
(4)’’; 
(B) in paragraph (3), by striking ‘‘paragraphs (5) and 
(6)’’ and inserting ‘‘paragraph (4)’’; 
(C) by striking paragraphs (4), (5), and (6); 
(D) by inserting after paragraph (3) the following: 
‘‘(4) ANNUAL
ADJUSTMENT.—For each fiscal year, the 
Commission shall by order adjust the rate required by para-
graphs (1) and (3) for such fiscal year to a rate that is equal 
to the rate (expressed in dollars per million) that is applicable 
under section 6(b) of the Securities Act of 1933 (15 U.S.C. 
77f(b)) for such fiscal year. 
‘‘(5) FEE COLLECTION.—Fees collected pursuant to this sub-
section for fiscal year 2012 and each fiscal year thereafter 
shall be deposited and credited as general revenue of the 
Treasury and shall not be available for obligation. 
‘‘(6) REVIEW; EFFECTIVE DATE; PUBLICATION.—In exercising 
its authority under this subsection, the Commission shall not 
be required to comply with the provisions of section 553 of 
title 5, United States Code. An adjusted rate prescribed under 
paragraph (4) shall be published and take effect in accordance 
with section 6(b) of the Securities Act of 1933 (15 U.S.C. 
77f(b)).’’; 
(E) by striking paragraphs (8), (9), and (10); and 
(F) by redesignating paragraph (11) as paragraph (8). 
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on October 1, 2011, except that for 
fiscal year 2012, the Commission shall publish the rate estab-
lished under section 6(b) of the Securities Act of 1933 (15 
U.S.C. 77f(b)), as amended by this Act, on August 31, 2011. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 35 of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78kk) is amended to read 
as follows:
H. R. 4173—579 
‘‘SEC. 35. AUTHORIZATION OF APPROPRIATIONS. 
‘‘In addition to any other funds authorized to be appropriated 
to the Commission, there are authorized to be appropriated to 
carry out the functions, powers, and duties of the Commission— 
‘‘(1) for fiscal year 2011, $1,300,000,000; 
‘‘(2) for fiscal year 2012, $1,500,000,000; 
‘‘(3) for fiscal year 2013, $1,750,000,000; 
‘‘(4) for fiscal year 2014, $2,000,000,000; and 
‘‘(5) for fiscal year 2015, $2,250,000,000.’’. 
(d) TRANSMITTAL OF BUDGET REQUESTS.— 
(1) AMENDMENT.—Section 31 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78ee) is amended by adding at the 
end the following: 
‘‘(m) TRANSMITTAL OF COMMISSION BUDGET REQUESTS.— 
‘‘(1) BUDGET REQUIRED.—For fiscal year 2012, and each 
fiscal year thereafter, the Commission shall prepare and submit 
a budget to the President. Whenever the Commission submits 
a budget estimate or request to the President or the Office 
of Management and Budget, the Commission shall concurrently 
transmit copies of the estimate or request to the Committee 
on Appropriations of the Senate, the Committee on Appropria-
tions of the House of Representatives, the Committee on 
Banking, Housing, and Urban Affairs of the Senate, and the 
Committee on Financial Services of the House of Representa-
tives. 
‘‘(2) SUBMISSION TO CONGRESS.—The President shall submit 
each budget submitted under paragraph (1) to Congress, in 
unaltered form, together with the annual budget for the 
Administration submitted by the President. 
‘‘(3) CONTENTS.—The Commission shall include in each 
budget submitted under paragraph (1)— 
‘‘(A) an itemization of the amount of funds necessary 
to carry out the functions of the Commission. 
‘‘(B) an amount to be designated as contingency funding 
to be used by the Commission to address unanticipated 
needs; and 
‘‘(C) a designation of any activities of the Commission 
for which multi-year budget authority would be suitable.’’. 
(2) BUDGET OF THE PRESIDENT.—For fiscal year 2012, and 
each fiscal year thereafter, the annual budget for the Adminis-
tration submitted by the President to Congress shall reflect 
the amendments made by this section. 
(e) SECURITIES AND EXCHANGE COMMISSION RESERVE FUND.— 
(1) AMENDMENT.—Section 4 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78d), as amended by this Act, is amended 
by adding at the end the following: 
‘‘(i) SECURITIES AND EXCHANGE COMMISSION RESERVE FUND.— 
‘‘(1) RESERVE FUND ESTABLISHED.—There is established in 
the Treasury of the United States a separate fund, to be known 
as the ‘Securities and Exchange Commission Reserve Fund’ 
(referred to in this subsection as the ‘Reserve Fund’). 
‘‘(2) RESERVE FUND AMOUNTS.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), any registration fees collected by the Commission under 
section 6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) 
or section 24(f) of the Investment Company Act of 1940
H. R. 4173—580 
(15 U.S.C. 80a-24(f)) shall be deposited into the Reserve 
Fund. 
‘‘(B) LIMITATIONS.—For any 1 fiscal year— 
‘‘(i) the amount deposited in the Fund may not 
exceed $50,000,000; and 
‘‘(ii) the balance in the Fund may not exceed 
$100,000,000. 
‘‘(C) EXCESS
FEES.—Any amounts in excess of the 
limitations described in subparagraph (B) that the Commis-
sion collects from registration fees under section 6(b) of 
the Securities Act of 1933 (15 U.S.C. 77f(b)) or section 
24(f) of the Investment Company Act of 1940 (15 U.S.C. 
80a-24(f)) shall be deposited in the General Fund of the 
Treasury of the United States and shall not be available 
for obligation by the Commission. 
‘‘(3) USE OF AMOUNTS IN RESERVE FUND.—The Commission 
may obligate amounts in the Reserve Fund, not to exceed 
a total of $100,000,000 in any 1 fiscal year, as the Commission 
determines is necessary to carry out the functions of the 
Commission. Any amounts in the reserve fund shall remain 
available until expended. Not later than 10 days after the 
date on which the Commission obligates amounts under this 
paragraph, the Commission shall notify Congress of the date, 
amount, and purpose of the obligation. 
‘‘(4) RULE
OF
CONSTRUCTION.—Amounts collected and 
deposited in the Reserve Fund shall not be construed to be 
Government funds or appropriated monies and shall not be 
subject to apportionment for the purpose of chapter 15 of title 
31, United States Code, or under any other authority.’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall take effect on October 1, 2011. 
TITLE X—BUREAU OF CONSUMER 
FINANCIAL PROTECTION 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Consumer Financial Protection 
Act of 2010’’. 
SEC. 1002. DEFINITIONS. 
Except as otherwise provided in this title, for purposes of this 
title, the following definitions shall apply: 
(1) AFFILIATE.—The term ‘‘affiliate’’ means any person that 
controls, is controlled by, or is under common control with 
another person. 
(2) BUREAU.—The term ‘‘Bureau’’ means the Bureau of 
Consumer Financial Protection. 
(3) BUSINESS OF INSURANCE.—The term ‘‘business of insur-
ance’’ means the writing of insurance or the reinsuring of 
risks by an insurer, including all acts necessary to such writing 
or reinsuring and the activities relating to the writing of insur-
ance or the reinsuring of risks conducted by persons who act 
as, or are, officers, directors, agents, or employees of insurers 
or who are other persons authorized to act on behalf of such 
persons.
H. R. 4173—581 
(4) CONSUMER.—The term ‘‘consumer’’ means an individual 
or an agent, trustee, or representative acting on behalf of 
an individual. 
(5) CONSUMER FINANCIAL PRODUCT OR SERVICE.—The term 
‘‘consumer financial product or service’’ means any financial 
product or service that is described in one or more categories 
under— 
(A) paragraph (15) and is offered or provided for use 
by consumers primarily for personal, family, or household 
purposes; or 
(B) clause (i), (iii), (ix), or (x) of paragraph (15)(A), 
and is delivered, offered, or provided in connection with 
a consumer financial product or service referred to in 
subparagraph (A). 
(6) COVERED PERSON.—The term ‘‘covered person’’ means— 
(A) any person that engages in offering or providing 
a consumer financial product or service; and 
(B) any affiliate of a person described in subparagraph 
(A) if such affiliate acts as a service provider to such 
person. 
(7) CREDIT.—The term ‘‘credit’’ means the right granted 
by a person to a consumer to defer payment of a debt, incur 
debt and defer its payment, or purchase property or services 
and defer payment for such purchase. 
(8) DEPOSIT-TAKING
ACTIVITY.—The term ‘‘deposit-taking 
activity’’ means— 
(A) the acceptance of deposits, maintenance of deposit 
accounts, or the provision of services related to the accept-
ance of deposits or the maintenance of deposit accounts; 
(B) the acceptance of funds, the provision of other 
services related to the acceptance of funds, or the mainte-
nance of member share accounts by a credit union; or 
(C) the receipt of funds or the equivalent thereof, as 
the Bureau may determine by rule or order, received or 
held by a covered person (or an agent for a covered person) 
for the purpose of facilitating a payment or transferring 
funds or value of funds between a consumer and a third 
party. 
(9) DESIGNATED
TRANSFER
DATE.—The term ‘‘designated 
transfer date’’ means the date established under section 1062. 
(10) DIRECTOR.—The term ‘‘Director’’ means the Director 
of the Bureau. 
(11) ELECTRONIC CONDUIT SERVICES.—The term ‘‘electronic 
conduit services’’— 
(A) means the provision, by a person, of electronic 
data transmission, routing, intermediate or transient stor-
age, or connections to a telecommunications system or net-
work; and 
(B) does not include a person that provides electronic 
conduit services if, when providing such services, the per-
son— 
(i) selects or modifies the content of the electronic 
data; 
(ii) transmits, routes, stores, or provides connec-
tions for electronic data, including financial data, in 
a manner that such financial data is differentiated 
from other types of data of the same form that such
H. R. 4173—582 
person transmits, routes, or stores, or with respect 
to which, provides connections; or 
(iii) is a payee, payor, correspondent, or similar 
party to a payment transaction with a consumer. 
(12) ENUMERATED CONSUMER LAWS.—Except as otherwise 
specifically provided in section 1029, subtitle G or subtitle 
H, the term ‘‘enumerated consumer laws’’ means— 
(A) the Alternative Mortgage Transaction Parity Act 
of 1982 (12 U.S.C. 3801 et seq.); 
(B) the Consumer Leasing Act of 1976 (15 U.S.C. 1667 
et seq.); 
(C) the Electronic Fund Transfer Act (15 U.S.C. 1693 
et seq.), except with respect to section 920 of that Act; 
(D) the Equal Credit Opportunity Act (15 U.S.C. 1691 
et seq.); 
(E) the Fair Credit Billing Act (15 U.S.C. 1666 et 
seq.); 
(F) the Fair Credit Reporting Act (15 U.S.C. 1681 
et seq.), except with respect to sections 615(e) and 628 
of that Act (15 U.S.C. 1681m(e), 1681w); 
(G) the Home Owners Protection Act of 1998 (12 U.S.C. 
4901 et seq.); 
(H) the Fair Debt Collection Practices Act (15 U.S.C. 
1692 et seq.); 
(I) subsections (b) through (f) of section 43 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831t(c)–(f)); 
(J) sections 502 through 509 of the Gramm-Leach- 
Bliley Act (15 U.S.C. 6802–6809) except for section 505 
as it applies to section 501(b); 
(K) the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2801 et seq.); 
(L) the Home Ownership and Equity Protection Act 
of 1994 (15 U.S.C. 1601 note); 
(M) the Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2601 et seq.); 
(N) the S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5101 et seq.); 
(O) the Truth in Lending Act (15 U.S.C. 1601 et seq.); 
(P) the Truth in Savings Act (12 U.S.C. 4301 et seq.); 
(Q) section 626 of the Omnibus Appropriations Act, 
2009 (Public Law 111–8); and 
(R) the Interstate Land Sales Full Disclosure Act (15 
U.S.C. 1701). 
(13) FAIR LENDING.—The term ‘‘fair lending’’ means fair, 
equitable, and nondiscriminatory access to credit for consumers. 
(14) FEDERAL CONSUMER FINANCIAL LAW.—The term ‘‘Fed-
eral consumer financial law’’ means the provisions of this title, 
the enumerated consumer laws, the laws for which authorities 
are transferred under subtitles F and H, and any rule or 
order prescribed by the Bureau under this title, an enumerated 
consumer law, or pursuant to the authorities transferred under 
subtitles F and H. The term does not include the Federal 
Trade Commission Act. 
(15) FINANCIAL PRODUCT OR SERVICE.— 
(A) IN
GENERAL.—The term ‘‘financial product or 
service’’ means—
H. R. 4173—583 
(i) extending credit and servicing loans, including 
acquiring, purchasing, selling, brokering, or other 
extensions of credit (other than solely extending 
commercial credit to a person who originates consumer 
credit transactions); 
(ii) extending or brokering leases of personal or 
real property that are the functional equivalent of pur-
chase finance arrangements, if— 
(I) the lease is on a non-operating basis; 
(II) the initial term of the lease is at least 
90 days; and 
(III) in the case of a lease involving real prop-
erty, at the inception of the initial lease, the trans-
action is intended to result in ownership of the 
leased property to be transferred to the lessee, 
subject to standards prescribed by the Bureau; 
(iii) providing real estate settlement services, 
except such services excluded under subparagraph (C), 
or performing appraisals of real estate or personal 
property; 
(iv) engaging in deposit-taking activities, transmit-
ting or exchanging funds, or otherwise acting as a 
custodian of funds or any financial instrument for use 
by or on behalf of a consumer; 
(v) selling, providing, or issuing stored value or 
payment instruments, except that, in the case of a 
sale of, or transaction to reload, stored value, only 
if the seller exercises substantial control over the terms 
or conditions of the stored value provided to the con-
sumer where, for purposes of this clause— 
(I) a seller shall not be found to exercise 
substantial control over the terms or conditions 
of the stored value if the seller is not a party 
to the contract with the consumer for the stored 
value product, and another person is principally 
responsible for establishing the terms or conditions 
of the stored value; and 
(II) advertising the nonfinancial goods or serv-
ices of the seller on the stored value card or device 
is not in itself an exercise of substantial control 
over the terms or conditions; 
(vi) providing check cashing, check collection, or 
check guaranty services; 
(vii) providing payments or other financial data 
processing products or services to a consumer by any 
technological means, including processing or storing 
financial or banking data for any payment instrument, 
or through any payments systems or network used 
for processing payments data, including payments 
made through an online banking system or mobile 
telecommunications network, except that a person shall 
not be deemed to be a covered person with respect 
to financial data processing solely because the person—
H. R. 4173—584 
(I) is a merchant, retailer, or seller of any 
nonfinancial good or service who engages in finan-
cial data processing by transmitting or storing pay-
ments data about a consumer exclusively for pur-
pose of initiating payments instructions by the 
consumer to pay such person for the purchase 
of, or to complete a commercial transaction for, 
such nonfinancial good or service sold directly by 
such person to the consumer; or 
(II) provides access to a host server to a person 
for purposes of enabling that person to establish 
and maintain a website; 
(viii) providing financial advisory services (other 
than services relating to securities provided by a person 
regulated by the Commission or a person regulated 
by a State securities Commission, but only to the extent 
that such person acts in a regulated capacity) to con-
sumers on individual financial matters or relating to 
proprietary financial products or services (other than 
by publishing any bona fide newspaper, news maga-
zine, or business or financial publication of general 
and regular circulation, including publishing market 
data, news, or data analytics or investment information 
or recommendations that are not tailored to the indi-
vidual needs of a particular consumer), including— 
(I) providing credit counseling to any con-
sumer; and 
(II) providing services to assist a consumer 
with debt management or debt settlement, modi-
fying the terms of any extension of credit, or 
avoiding foreclosure; 
(ix) collecting, analyzing, maintaining, or providing 
consumer report information or other account informa-
tion, including information relating to the credit history 
of consumers, used or expected to be used in connection 
with any decision regarding the offering or provision 
of a consumer financial product or service, except to 
the extent that— 
(I) a person— 
(aa) 
collects, 
analyzes, 
or 
maintains 
information that relates solely to the trans-
actions between a consumer and such person; 
(bb) provides the information described in 
item (aa) to an affiliate of such person; or 
(cc) provides information that is used or 
expected to be used solely in any decision 
regarding the offering or provision of a product 
or service that is not a consumer financial 
product or service, including a decision for 
employment, government licensing, or a resi-
dential lease or tenancy involving a consumer; 
and 
(II) the information described in subclause 
(I)(aa) is not used by such person or affiliate in 
connection with any decision regarding the offering 
or provision of a consumer financial product or
H. R. 4173—585 
service to the consumer, other than credit 
described in section 1027(a)(2)(A); 
(x) collecting debt related to any consumer finan-
cial product or service; and 
(xi) such other financial product or service as may 
be defined by the Bureau, by regulation, for purposes 
of this title, if the Bureau finds that such financial 
product or service is— 
(I) entered into or conducted as a subterfuge 
or with a purpose to evade any Federal consumer 
financial law; or 
(II) permissible for a bank or for a financial 
holding company to offer or to provide under any 
provision of a Federal law or regulation applicable 
to a bank or a financial holding company, and 
has, or likely will have, a material impact on con-
sumers. 
(B) RULE OF CONSTRUCTION.— 
(i) IN
GENERAL.—For purposes of subparagraph 
(A)(xi)(II), and subject to clause (ii) of this subpara-
graph, the following activities provided to a covered 
person shall not, for purposes of this title, be considered 
incidental or complementary to a financial activity 
permissible for a financial holding company to engage 
in under any provision of a Federal law or regulation 
applicable to a financial holding company: 
(I) Providing information products or services 
to a covered person for identity authentication. 
(II) Providing information products or services 
for fraud or identify theft detection, prevention, 
or investigation. 
(III) Providing document retrieval or delivery 
services. 
(IV) Providing public records information 
retrieval. 
(V) Providing information products or services 
for anti-money laundering activities. 
(ii) LIMITATION.—Nothing in clause (i) may be con-
strued as modifying or limiting the authority of the 
Bureau to exercise any— 
(I) 
examination 
or 
enforcement 
powers 
authority under this title with respect to a covered 
person or service provider engaging in an activity 
described in subparagraph (A)(ix); or 
(II) powers authorized by this title to prescribe 
rules, issue orders, or take other actions under 
any enumerated consumer law or law for which 
the authorities are transferred under subtitle F 
or H. 
(C) EXCLUSIONS.—The term ‘‘financial product or 
service’’ does not include— 
(i) the business of insurance; or 
(ii) electronic conduit services. 
(16) FOREIGN
EXCHANGE.—The term ‘‘foreign exchange’’ 
means the exchange, for compensation, of currency of the 
United States or of a foreign government for currency of another 
government.
H. R. 4173—586 
(17) INSURED
CREDIT
UNION.—The term ‘‘insured credit 
union’’ has the same meaning as in section 101 of the Federal 
Credit Union Act (12 U.S.C. 1752). 
(18) 
PAYMENT
INSTRUMENT.—The 
term 
‘‘payment 
instrument’’ means a check, draft, warrant, money order, trav-
eler’s check, electronic instrument, or other instrument, pay-
ment of funds, or monetary value (other than currency). 
(19) PERSON.—The term ‘‘person’’ means an individual, 
partnership, company, corporation, association (incorporated or 
unincorporated), trust, estate, cooperative organization, or other 
entity. 
(20) PERSON
REGULATED
BY
THE
COMMODITY
FUTURES 
TRADING COMMISSION.—The term ‘‘person regulated by the Com-
modity Futures Trading Commission’’ means any person that 
is registered, or required by statute or regulation to be reg-
istered, with the Commodity Futures Trading Commission, but 
only to the extent that the activities of such person are subject 
to the jurisdiction of the Commodity Futures Trading Commis-
sion under the Commodity Exchange Act. 
(21) PERSON REGULATED BY THE COMMISSION.—The term 
‘‘person regulated by the Commission’’ means a person who 
is— 
(A) a broker or dealer that is required to be registered 
under the Securities Exchange Act of 1934; 
(B) an investment adviser that is registered under 
the Investment Advisers Act of 1940; 
(C) an investment company that is required to be reg-
istered under the Investment Company Act of 1940, and 
any company that has elected to be regulated as a business 
development company under that Act; 
(D) a national securities exchange that is required 
to be registered under the Securities Exchange Act of 1934; 
(E) a transfer agent that is required to be registered 
under the Securities Exchange Act of 1934; 
(F) a clearing corporation that is required to be reg-
istered under the Securities Exchange Act of 1934; 
(G) any self-regulatory organization that is required 
to be registered with the Commission; 
(H) 
any 
nationally 
recognized 
statistical 
rating 
organization that is required to be registered with the 
Commission; 
(I) any securities information processor that is required 
to be registered with the Commission; 
(J) any municipal securities dealer that is required 
to be registered with the Commission; 
(K) any other person that is required to be registered 
with the Commission under the Securities Exchange Act 
of 1934; and 
(L) any employee, agent, or contractor acting on behalf 
of, registered with, or providing services to, any person 
described in any of subparagraphs (A) through (K), but 
only to the extent that any person described in any of 
subparagraphs (A) through (K), or the employee, agent, 
or contractor of such person, acts in a regulated capacity. 
(22) PERSON
REGULATED
BY
A
STATE
INSURANCE
REGU-
LATOR.—The term ‘‘person regulated by a State insurance regu-
lator’’ means any person that is engaged in the business of
H. R. 4173—587 
insurance and subject to regulation by any State insurance 
regulator, but only to the extent that such person acts in 
such capacity. 
(23) PERSON
THAT
PERFORMS
INCOME
TAX
PREPARATION 
ACTIVITIES FOR CONSUMERS.—The term ‘‘person that performs 
income tax preparation activities for consumers’’ means— 
(A) any tax return preparer (as defined in section 
7701(a)(36) of the Internal Revenue Code of 1986), regard-
less of whether compensated, but only to the extent that 
the person acts in such capacity; 
(B) any person regulated by the Secretary under section 
330 of title 31, United States Code, but only to the extent 
that the person acts in such capacity; and 
(C) any authorized IRS e-file Providers (as defined 
for purposes of section 7216 of the Internal Revenue Code 
of 1986), but only to the extent that the person acts in 
such capacity. 
(24) PRUDENTIAL REGULATOR.—The term ‘‘prudential regu-
lator’’ means— 
(A) in the case of an insured depository institution 
or depository institution holding company (as defined in 
section 3 of the Federal Deposit Insurance Act), or sub-
sidiary of such institution or company, the appropriate 
Federal banking agency, as that term is defined in section 
3 of the Federal Deposit Insurance Act; and 
(B) in the case of an insured credit union, the National 
Credit Union Administration. 
(25) RELATED PERSON.—The term ‘‘related person’’— 
(A) shall apply only with respect to a covered person 
that is not a bank holding company (as that term is defined 
in section 2 of the Bank Holding Company Act of 1956), 
credit union, or depository institution; 
(B) shall be deemed to mean a covered person for 
all purposes of any provision of Federal consumer financial 
law; and 
(C) means— 
(i) any director, officer, or employee charged with 
managerial responsibility for, or controlling share-
holder of, or agent for, such covered person; 
(ii) any shareholder, consultant, joint venture 
partner, or other person, as determined by the Bureau 
(by rule or on a case-by-case basis) who materially 
participates in the conduct of the affairs of such covered 
person; and 
(iii) any independent contractor (including any 
attorney, appraiser, or accountant) who knowingly or 
recklessly participates in any— 
(I) violation of any provision of law or regula-
tion; or 
(II) breach of a fiduciary duty. 
(26) SERVICE PROVIDER.— 
(A) IN GENERAL.—The term ‘‘service provider’’ means 
any person that provides a material service to a covered 
person in connection with the offering or provision by such 
covered person of a consumer financial product or service, 
including a person that—
H. R. 4173—588 
(i) 
participates 
in 
designing, 
operating, 
or 
maintaining the consumer financial product or service; 
or 
(ii) processes transactions relating to the consumer 
financial product or service (other than unknowingly 
or incidentally transmitting or processing financial 
data in a manner that such data is undifferentiated 
from other types of data of the same form as the 
person transmits or processes). 
(B) EXCEPTIONS.—The term ‘‘service provider’’ does not 
include a person solely by virtue of such person offering 
or providing to a covered person— 
(i) a support service of a type provided to 
businesses generally or a similar ministerial service; 
or 
(ii) time or space for an advertisement for a con-
sumer financial product or service through print, news-
paper, or electronic media. 
(C) RULE OF CONSTRUCTION.—A person that is a service 
provider shall be deemed to be a covered person to the 
extent that such person engages in the offering or provision 
of its own consumer financial product or service. 
(27) STATE.—The term ‘‘State’’ means any State, territory, 
or possession of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, Guam, American Samoa, or the 
United States Virgin Islands or any federally recognized Indian 
tribe, as defined by the Secretary of the Interior under section 
104(a) of the Federally Recognized Indian Tribe List Act of 
1994 (25 U.S.C. 479a–1(a)). 
(28) STORED VALUE.— 
(A) IN GENERAL.—The term ‘‘stored value’’ means funds 
or monetary value represented in any electronic format, 
whether or not specially encrypted, and stored or capable 
of storage on electronic media in such a way as to be 
retrievable and transferred electronically, and includes a 
prepaid debit card or product, or any other similar product, 
regardless of whether the amount of the funds or monetary 
value may be increased or reloaded. 
(B) EXCLUSION.—Notwithstanding subparagraph (A), 
the term ‘‘stored value’’ does not include a special purpose 
card or certificate, which shall be defined for purposes 
of this paragraph as funds or monetary value represented 
in any electronic format, whether or not specially 
encrypted, that is— 
(i) issued by a merchant, retailer, or other seller 
of nonfinancial goods or services; 
(ii) redeemable only for transactions with the mer-
chant, retailer, or seller of nonfinancial goods or serv-
ices or with an affiliate of such person, which affiliate 
itself is a merchant, retailer, or seller of nonfinancial 
goods or services; 
(iii) issued in a specified amount that, except in 
the case of a card or product used solely for telephone 
services, may not be increased or reloaded; 
(iv) purchased on a prepaid basis in exchange for 
payment; and
H. R. 4173—589 
(v) honored upon presentation to such merchant, 
retailer, or seller of nonfinancial goods or services or 
an affiliate of such person, which affiliate itself is 
a merchant, retailer, or seller of nonfinancial goods 
or services, only for any nonfinancial goods or services. 
(29) TRANSMITTING
OR
EXCHANGING
FUNDS.—The term 
‘‘transmitting or exchanging funds’’ means receiving currency, 
monetary value, or payment instruments from a consumer for 
the purpose of exchanging or transmitting the same by any 
means, including transmission by wire, facsimile, electronic 
transfer, courier, the Internet, or through bill payment services 
or through other businesses that facilitate third-party transfers 
within the United States or to or from the United States. 
Subtitle A—Bureau of Consumer Financial 
Protection 
SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINAN-
CIAL PROTECTION. 
(a) BUREAU ESTABLISHED.—There is established in the Federal 
Reserve System, an independent bureau to be known as the ‘‘Bureau 
of Consumer Financial Protection’’, which shall regulate the offering 
and provision of consumer financial products or services under 
the Federal consumer financial laws. The Bureau shall be consid-
ered an Executive agency, as defined in section 105 of title 5, 
United States Code. Except as otherwise provided expressly by 
law, all Federal laws dealing with public or Federal contracts, 
property, works, officers, employees, budgets, or funds, including 
the provisions of chapters 5 and 7 of title 5, shall apply to the 
exercise of the powers of the Bureau. 
(b) DIRECTOR AND DEPUTY DIRECTOR.— 
(1) IN GENERAL.—There is established the position of the 
Director, who shall serve as the head of the Bureau. 
(2) APPOINTMENT.—Subject to paragraph (3), the Director 
shall be appointed by the President, by and with the advice 
and consent of the Senate. 
(3) QUALIFICATION.—The President shall nominate the 
Director from among individuals who are citizens of the United 
States. 
(4) COMPENSATION.—The Director shall be compensated at 
the rate prescribed for level II of the Executive Schedule under 
section 5313 of title 5, United States Code. 
(5) DEPUTY DIRECTOR.—There is established the position 
of Deputy Director, who shall— 
(A) be appointed by the Director; and 
(B) serve as acting Director in the absence or unavail-
ability of the Director. 
(c) TERM.— 
(1) IN GENERAL.—The Director shall serve for a term of 
5 years. 
(2) EXPIRATION
OF
TERM.—An individual may serve as 
Director after the expiration of the term for which appointed, 
until a successor has been appointed and qualified. 
(3) REMOVAL FOR CAUSE.—The President may remove the 
Director for inefficiency, neglect of duty, or malfeasance in 
office.
H. R. 4173—590 
(d) SERVICE RESTRICTION.—No Director or Deputy Director may 
hold any office, position, or employment in any Federal reserve 
bank, Federal home loan bank, covered person, or service provider 
during the period of service of such person as Director or Deputy 
Director. 
(e) OFFICES.—The principal office of the Bureau shall be in 
the District of Columbia. The Director may establish regional offices 
of the Bureau, including in cities in which the Federal reserve 
banks, or branches of such banks, are located, in order to carry 
out the responsibilities assigned to the Bureau under the Federal 
consumer financial laws. 
SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS. 
(a) POWERS OF THE BUREAU.—The Bureau is authorized to 
establish the general policies of the Bureau with respect to all 
executive and administrative functions, including— 
(1) the establishment of rules for conducting the general 
business of the Bureau, in a manner not inconsistent with 
this title; 
(2) to bind the Bureau and enter into contracts; 
(3) directing the establishment and maintenance of divi-
sions or other offices within the Bureau, in order to carry 
out the responsibilities under the Federal consumer financial 
laws, and to satisfy the requirements of other applicable law; 
(4) to coordinate and oversee the operation of all adminis-
trative, enforcement, and research activities of the Bureau; 
(5) to adopt and use a seal; 
(6) to determine the character of and the necessity for 
the obligations and expenditures of the Bureau; 
(7) the appointment and supervision of personnel employed 
by the Bureau; 
(8) the distribution of business among personnel appointed 
and supervised by the Director and among administrative units 
of the Bureau; 
(9) the use and expenditure of funds; 
(10) implementing the Federal consumer financial laws 
through rules, orders, guidance, interpretations, statements of 
policy, examinations, and enforcement actions; and 
(11) performing such other functions as may be authorized 
or required by law. 
(b) DELEGATION OF AUTHORITY.—The Director of the Bureau 
may delegate to any duly authorized employee, representative, or 
agent any power vested in the Bureau by law. 
(c) AUTONOMY OF THE BUREAU.— 
(1) COORDINATION WITH THE BOARD OF GOVERNORS.—Not-
withstanding any other provision of law applicable to the super-
vision or examination of persons with respect to Federal con-
sumer financial laws, the Board of Governors may delegate 
to the Bureau the authorities to examine persons subject to 
the jurisdiction of the Board of Governors for compliance with 
the Federal consumer financial laws. 
(2) AUTONOMY.—Notwithstanding the authorities granted 
to the Board of Governors under the Federal Reserve Act, 
the Board of Governors may not— 
(A) intervene in any matter or proceeding before the 
Director, including examinations or enforcement actions, 
unless otherwise specifically provided by law;
H. R. 4173—591 
(B) appoint, direct, or remove any officer or employee 
of the Bureau; or 
(C) merge or consolidate the Bureau, or any of the 
functions or responsibilities of the Bureau, with any divi-
sion or office of the Board of Governors or the Federal 
reserve banks. 
(3) RULES AND ORDERS.—No rule or order of the Bureau 
shall be subject to approval or review by the Board of Gov-
ernors. The Board of Governors may not delay or prevent 
the issuance of any rule or order of the Bureau. 
(4) RECOMMENDATIONS
AND
TESTIMONY.—No officer or 
agency of the United States shall have any authority to require 
the Director or any other officer of the Bureau to submit legisla-
tive recommendations, or testimony or comments on legislation, 
to any officer or agency of the United States for approval, 
comments, or review prior to the submission of such rec-
ommendations, testimony, or comments to the Congress, if such 
recommendations, testimony, or comments to the Congress 
include a statement indicating that the views expressed therein 
are those of the Director or such officer, and do not necessarily 
reflect the views of the Board of Governors or the President. 
(5) CLARIFICATION OF AUTONOMY OF THE BUREAU IN LEGAL 
PROCEEDINGS.—The Bureau shall not be liable under any provi-
sion of law for any action or inaction of the Board of Governors, 
and the Board of Governors shall not be liable under any 
provision of law for any action or inaction of the Bureau. 
SEC. 1013. ADMINISTRATION. 
(a) PERSONNEL.— 
(1) APPOINTMENT.— 
(A) IN GENERAL.—The Director may fix the number 
of, and appoint and direct, all employees of the Bureau, 
in accordance with the applicable provisions of title 5, 
United States Code. 
(B) EMPLOYEES
OF
THE
BUREAU.—The Director is 
authorized to employ attorneys, compliance examiners, 
compliance supervision analysts, economists, statisticians, 
and other employees as may be deemed necessary to con-
duct the business of the Bureau. Unless otherwise provided 
expressly by law, any individual appointed under this sec-
tion shall be an employee as defined in section 2105 of 
title 5, United States Code, and subject to the provisions 
of such title and other laws generally applicable to the 
employees of an Executive agency. 
(C) WAIVER AUTHORITY.— 
(i) IN
GENERAL.—In making any appointment 
under subparagraph (A), the Director may waive the 
requirements of chapter 33 of title 5, United States 
Code, and the regulations implementing such chapter, 
to the extent necessary to appoint employees on terms 
and conditions that are consistent with those set forth 
in section 11(1) of the Federal Reserve Act (12 U.S.C. 
248(1)), while providing for— 
(I) fair, credible, and transparent methods of 
establishing qualification requirements for, recruit-
ment for, and appointments to positions;
H. R. 4173—592 
(II) fair and open competition and equitable 
treatment in the consideration and selection of 
individuals to positions; 
(III) fair, credible, and transparent methods 
of assigning, reassigning, detailing, transferring, 
and promoting employees. 
(ii) VETERANS
PREFERENCES.—In implementing 
this subparagraph, the Director shall comply with the 
provisions of section 2302(b)(11), regarding veterans’ 
preference requirements, in a manner consistent with 
that in which such provisions are applied under 
chapter 33 of title 5, United States Code. The authority 
under this subparagraph to waive the requirements 
of that chapter 33 shall expire 5 years after the date 
of enactment of this Act. 
(2) 
COMPENSATION.—Notwithstanding 
any 
otherwise 
applicable provision of title 5, United States Code, concerning 
compensation, including the provisions of chapter 51 and 
chapter 53, the following provisions shall apply with respect 
to employees of the Bureau: 
(A) The rates of basic pay for all employees of the 
Bureau may be set and adjusted by the Director. 
(B) The Director shall at all times provide compensa-
tion (including benefits) to each class of employees that, 
at a minimum, are comparable to the compensation and 
benefits then being provided by the Board of Governors 
for the corresponding class of employees. 
(C) All such employees shall be compensated (including 
benefits) on terms and conditions that are consistent with 
the terms and conditions set forth in section 11(l) of the 
Federal Reserve Act (12 U.S.C. 248(l)). 
(3) BUREAU PARTICIPATION IN FEDERAL RESERVE SYSTEM 
RETIREMENT
PLAN
AND
FEDERAL
RESERVE
SYSTEM
THRIFT 
PLAN.— 
(A) EMPLOYEE ELECTION.—Employees appointed to the 
Bureau may elect to participate in either— 
(i) both the Federal Reserve System Retirement 
Plan and the Federal Reserve System Thrift Plan, 
under the same terms on which such participation 
is offered to employees of the Board of Governors who 
participate in such plans and under the terms and 
conditions specified under section 1064(i)(1)(C); or 
(ii) the Civil Service Retirement System under 
chapter 83 of title 5, United States Code, or the Federal 
Employees Retirement System under chapter 84 of 
title 5, United States Code, if previously covered under 
one of those Federal employee retirement systems. 
(B) ELECTION PERIOD.—Bureau employees shall make 
an election under this paragraph not later than 1 year 
after the date of appointment by, or transfer under subtitle 
F to, the Bureau. Participation in, and benefit accruals 
under, any other retirement plan established or maintained 
by the Federal Government shall end not later than the 
date on which participation in, and benefit accruals under, 
the Federal Reserve System Retirement Plan and Federal 
Reserve System Thrift Plan begin.
H. R. 4173—593 
(C) EMPLOYER CONTRIBUTION.—The Bureau shall pay 
an employer contribution to the Federal Reserve System 
Retirement Plan, in the amount established as an employer 
contribution under the Federal Employees Retirement 
System, as established under chapter 84 of title 5, United 
States Code, for each Bureau employee who elects to 
participate in the Federal Reserve System Retirement Plan. 
The Bureau shall pay an employer contribution to the 
Federal Reserve System Thrift Plan for each Bureau 
employee who elects to participate in such plan, as required 
under the terms of such plan. 
(D) CONTROLLED GROUP STATUS.—The Bureau is the 
same employer as the Federal Reserve System (as com-
prised of the Board of Governors and each of the 12 Federal 
reserve banks prior to the date of enactment of this Act) 
for purposes of subsections (b), (c), (m), and (o) of section 
414 of the Internal Revenue Code of 1986, (26 U.S.C. 
414). 
(4) LABOR-MANAGEMENT RELATIONS.—Chapter 71 of title 
5, United States Code, shall apply to the Bureau and the 
employees of the Bureau. 
(5) AGENCY OMBUDSMAN.— 
(A) ESTABLISHMENT
REQUIRED.—Not later than 180 
days after the designated transfer date, the Bureau shall 
appoint an ombudsman. 
(B) 
DUTIES
OF
OMBUDSMAN.—The 
ombudsman 
appointed in accordance with subparagraph (A) shall— 
(i) act as a liaison between the Bureau and any 
affected person with respect to any problem that such 
party may have in dealing with the Bureau, resulting 
from the regulatory activities of the Bureau; and 
(ii) assure that safeguards exist to encourage 
complainants to come forward and preserve confiden-
tiality. 
(b) SPECIFIC FUNCTIONAL UNITS.— 
(1) RESEARCH.—The Director shall establish a unit whose 
functions shall include researching, analyzing, and reporting 
on— 
(A) developments in markets for consumer financial 
products or services, including market areas of alternative 
consumer financial products or services with high growth 
rates and areas of risk to consumers; 
(B) access to fair and affordable credit for traditionally 
underserved communities; 
(C) consumer awareness, understanding, and use of 
disclosures and communications regarding consumer finan-
cial products or services; 
(D) consumer awareness and understanding of costs, 
risks, and benefits of consumer financial products or serv-
ices; 
(E) consumer behavior with respect to consumer finan-
cial products or services, including performance on mort-
gage loans; and 
(F) experiences of traditionally underserved consumers, 
including un-banked and under-banked consumers.
H. R. 4173—594 
(2) COMMUNITY AFFAIRS.—The Director shall establish a 
unit whose functions shall include providing information, guid-
ance, and technical assistance regarding the offering and provi-
sion of consumer financial products or services to traditionally 
underserved consumers and communities. 
(3) COLLECTING AND TRACKING COMPLAINTS.— 
(A) IN GENERAL.—The Director shall establish a unit 
whose functions shall include establishing a single, toll- 
free telephone number, a website, and a database or uti-
lizing an existing database to facilitate the centralized 
collection of, monitoring of, and response to consumer com-
plaints regarding consumer financial products or services. 
The Director shall coordinate with the Federal Trade 
Commission or other Federal agencies to route complaints 
to such agencies, where appropriate. 
(B) ROUTING CALLS TO STATES.—To the extent prac-
ticable, State agencies may receive appropriate complaints 
from the systems established under subparagraph (A), if— 
(i) the State agency system has the functional 
capacity to receive calls or electronic reports routed 
by the Bureau systems; 
(ii) the State agency has satisfied any conditions 
of participation in the system that the Bureau may 
establish, including treatment of personally identifiable 
information and sharing of information on complaint 
resolution or related compliance procedures and 
resources; and 
(iii) participation by the State agency includes 
measures necessary to provide for protection of person-
ally identifiable information that conform to the stand-
ards for protection of the confidentiality of personally 
identifiable information and for data integrity and 
security that apply to the Federal agencies described 
in subparagraph (D). 
(C) REPORTS TO THE CONGRESS.—The Director shall 
present an annual report to Congress not later than March 
31 of each year on the complaints received by the Bureau 
in the prior year regarding consumer financial products 
and services. Such report shall include information and 
analysis about complaint numbers, complaint types, and, 
where applicable, information about resolution of com-
plaints. 
(D) DATA SHARING REQUIRED.—To facilitate preparation 
of the reports required under subparagraph (C), supervision 
and enforcement activities, and monitoring of the market 
for consumer financial products and services, the Bureau 
shall share consumer complaint information with pruden-
tial regulators, the Federal Trade Commission, other Fed-
eral agencies, and State agencies, subject to the standards 
applicable to Federal agencies for protection of the confiden-
tiality of personally identifiable information and for data 
security and integrity. The prudential regulators, the Fed-
eral Trade Commission, and other Federal agencies shall 
share data relating to consumer complaints regarding con-
sumer financial products and services with the Bureau, 
subject to the standards applicable to Federal agencies
H. R. 4173—595 
for protection of confidentiality of personally identifiable 
information and for data security and integrity. 
(c) OFFICE OF FAIR LENDING AND EQUAL OPPORTUNITY.— 
(1) ESTABLISHMENT.—The Director shall establish within 
the Bureau the Office of Fair Lending and Equal Opportunity. 
(2) FUNCTIONS.—The Office of Fair Lending and Equal 
Opportunity shall have such powers and duties as the Director 
may delegate to the Office, including— 
(A) providing oversight and enforcement of Federal 
laws intended to ensure the fair, equitable, and nondiscrim-
inatory access to credit for both individuals and commu-
nities that are enforced by the Bureau, including the Equal 
Credit Opportunity Act and the Home Mortgage Disclosure 
Act; 
(B) coordinating fair lending efforts of the Bureau with 
other Federal agencies and State regulators, as appro-
priate, to promote consistent, efficient, and effective 
enforcement of Federal fair lending laws; 
(C) working with private industry, fair lending, civil 
rights, consumer and community advocates on the pro-
motion of fair lending compliance and education; and 
(D) providing annual reports to Congress on the efforts 
of the Bureau to fulfill its fair lending mandate. 
(3) ADMINISTRATION OF OFFICE.—There is established the 
position of Assistant Director of the Bureau for Fair Lending 
and Equal Opportunity, who— 
(A) shall be appointed by the Director; and 
(B) shall carry out such duties as the Director may 
delegate to such Assistant Director. 
(d) OFFICE OF FINANCIAL EDUCATION.— 
(1) ESTABLISHMENT.—The Director shall establish an Office 
of Financial Education, which shall be responsible for devel-
oping and implementing initiatives intended to educate and 
empower consumers to make better informed financial 
decisions. 
(2) OTHER DUTIES.—The Office of Financial Education shall 
develop and implement a strategy to improve the financial 
literacy of consumers that includes measurable goals and objec-
tives, in consultation with the Financial Literacy and Education 
Commission, consistent with the National Strategy for Finan-
cial Literacy, through activities including providing opportuni-
ties for consumers to access— 
(A) financial counseling, including community-based 
financial counseling, where practicable; 
(B) information to assist with the evaluation of credit 
products and the understanding of credit histories and 
scores; 
(C) savings, borrowing, and other services found at 
mainstream financial institutions; 
(D) activities intended to— 
(i) prepare the consumer for educational expenses 
and the submission of financial aid applications, and 
other major purchases; 
(ii) reduce debt; and 
(iii) improve the financial situation of the con-
sumer;
H. R. 4173—596 
(E) assistance in developing long-term savings strate-
gies; and 
(F) wealth building and financial services during the 
preparation process to claim earned income tax credits 
and Federal benefits. 
(3) COORDINATION.—The Office of Financial Education shall 
coordinate with other units within the Bureau in carrying 
out its functions, including— 
(A) working with the Community Affairs Office to 
implement the strategy to improve financial literacy of 
consumers; and 
(B) working with the research unit established by the 
Director to conduct research related to consumer financial 
education and counseling. 
(4) REPORT.—Not later than 24 months after the designated 
transfer date, and annually thereafter, the Director shall 
submit a report on its financial literacy activities and strategy 
to improve financial literacy of consumers to— 
(A) the Committee on Banking, Housing, and Urban 
Affairs of the Senate; and 
(B) the Committee on Financial Services of the House 
of Representatives. 
(5) MEMBERSHIP IN FINANCIAL LITERACY AND EDUCATION 
COMMISSION.—Section 513(c)(1) of the Financial Literacy and 
Education Improvement Act (20 U.S.C. 9702(c)(1)) is amended— 
(A) in subparagraph (B), by striking ‘‘and’’ at the end; 
(B) by redesignating subparagraph (C) as subpara-
graph (D); and 
(C) by inserting after subparagraph (B) the following 
new subparagraph: 
‘‘(C) the Director of the Bureau of Consumer Financial 
Protection; and’’. 
(6) CONFORMING AMENDMENT.—Section 513(d) of the Finan-
cial Literacy and Education Improvement Act (20 U.S.C. 
9702(d)) is amended by adding at the end the following: ‘‘The 
Director of the Bureau of Consumer Financial Protection shall 
serve as the Vice Chairman.’’. 
(7) STUDY AND REPORT ON FINANCIAL LITERACY PROGRAM.— 
(A) IN
GENERAL.—The Comptroller General of the 
United States shall conduct a study to identify— 
(i) the feasibility of certification of persons pro-
viding the programs or performing the activities 
described in paragraph (2), including recognizing out-
standing programs, and developing guidelines and 
resources 
for 
community-based 
practitioners, 
including— 
(I) a potential certification process and stand-
ards for certification; 
(II) appropriate certifying entities; 
(III) resources required for funding such a 
process; and 
(IV) a cost-benefit analysis of such certifi-
cation; 
(ii) technological resources intended to collect, ana-
lyze, evaluate, or promote financial literacy and coun-
seling programs;
H. R. 4173—597 
(iii) 
effective 
methods, 
tools, 
and 
strategies 
intended to educate and empower consumers about 
personal finance management; and 
(iv) recommendations intended to encourage the 
development of programs that effectively improve 
financial education outcomes and empower consumers 
to make better informed financial decisions based on 
findings. 
(B) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Comptroller General of the 
United States shall submit a report on the results of the 
study conducted under this paragraph to the Committee 
on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House 
of Representatives. 
(e) OFFICE OF SERVICE MEMBER AFFAIRS.— 
(1) IN GENERAL.—The Director shall establish an Office 
of Service Member Affairs, which shall be responsible for devel-
oping and implementing initiatives for service members and 
their families intended to— 
(A) educate and empower service members and their 
families to make better informed decisions regarding con-
sumer financial products and services; 
(B) coordinate with the unit of the Bureau established 
under subsection (b)(3), in order to monitor complaints 
by service members and their families and responses to 
those complaints by the Bureau or other appropriate Fed-
eral or State agency; and 
(C) coordinate efforts among Federal and State agen-
cies, as appropriate, regarding consumer protection meas-
ures relating to consumer financial products and services 
offered to, or used by, service members and their families. 
(2) COORDINATION.— 
(A) REGIONAL SERVICES.—The Director is authorized 
to assign employees of the Bureau as may be deemed 
necessary to conduct the business of the Office of Service 
Member Affairs, including by establishing and maintaining 
the functions of the Office in regional offices of the Bureau 
located near military bases, military treatment facilities, 
or other similar military facilities. 
(B) AGREEMENTS.—The Director is authorized to enter 
into memoranda of understanding and similar agreements 
with the Department of Defense, including any branch 
or agency as authorized by the department, in order to 
carry out the business of the Office of Service Member 
Affairs. 
(3) DEFINITION.—As used in this subsection, the term 
‘‘service member’’ means any member of the United States 
Armed Forces and any member of the National Guard or 
Reserves. 
(f) TIMING.—The Office of Fair Lending and Equal Opportunity, 
the Office of Financial Education, and the Office of Service Member 
Affairs shall each be established not later than 1 year after the 
designated transfer date. 
(g) OFFICE OF FINANCIAL PROTECTION FOR OLDER AMERICANS.— 
(1) ESTABLISHMENT.—Before the end of the 180-day period 
beginning on the designated transfer date, the Director shall
H. R. 4173—598 
establish the Office of Financial Protection for Older Americans, 
the functions of which shall include activities designed to facili-
tate the financial literacy of individuals who have attained 
the age of 62 years or more (in this subsection, referred to 
as ‘‘seniors’’) on protection from unfair, deceptive, and abusive 
practices and on current and future financial choices, including 
through the dissemination of materials to seniors on such 
topics. 
(2) ASSISTANT DIRECTOR.—The Office of Financial Protec-
tion for Older Americans (in this subsection referred to as 
the ‘‘Office’’) shall be headed by an assistant director. 
(3) DUTIES.—The Office shall— 
(A) develop goals for programs that provide seniors 
financial literacy and counseling, including programs 
that— 
(i) help seniors recognize warning signs of unfair, 
deceptive, or abusive practices, protect themselves from 
such practices; 
(ii) provide one-on-one financial counseling on 
issues including long-term savings and later-life eco-
nomic security; and 
(iii) provide personal consumer credit advocacy to 
respond to consumer problems caused by unfair, decep-
tive, or abusive practices; 
(B) monitor certifications or designations of financial 
advisors who advise seniors and alert the Commission and 
State regulators of certifications or designations that are 
identified as unfair, deceptive, or abusive; 
(C) not later than 18 months after the date of the 
establishment of the Office, submit to Congress and the 
Commission any legislative and regulatory recommenda-
tions on the best practices for— 
(i) disseminating information regarding the legit-
imacy of certifications of financial advisers who advise 
seniors; 
(ii) methods in which a senior can identify the 
financial advisor most appropriate for the senior’s 
needs; and 
(iii) methods in which a senior can verify a finan-
cial advisor’s credentials; 
(D) conduct research to identify best practices and 
effective methods, tools, technology and strategies to edu-
cate and counsel seniors about personal finance manage-
ment with a focus on— 
(i) protecting themselves from unfair, deceptive, 
and abusive practices; 
(ii) long-term savings; and 
(iii) planning for retirement and long-term care; 
(E) coordinate consumer protection efforts of seniors 
with other Federal agencies and State regulators, as appro-
priate, to promote consistent, effective, and efficient 
enforcement; and 
(F) work with community organizations, non-profit 
organizations, and other entities that are involved with 
educating or assisting seniors (including the National Edu-
cation and Resource Center on Women and Retirement 
Planning).
H. R. 4173—599 
SEC. 1014. CONSUMER ADVISORY BOARD. 
(a) ESTABLISHMENT REQUIRED.—The Director shall establish 
a Consumer Advisory Board to advise and consult with the Bureau 
in the exercise of its functions under the Federal consumer financial 
laws, and to provide information on emerging practices in the 
consumer financial products or services industry, including regional 
trends, concerns, and other relevant information. 
(b) MEMBERSHIP.—In appointing the members of the Consumer 
Advisory Board, the Director shall seek to assemble experts in 
consumer protection, financial services, community development, 
fair lending and civil rights, and consumer financial products or 
services and representatives of depository institutions that pri-
marily serve underserved communities, and representatives of 
communities that have been significantly impacted by higher-priced 
mortgage loans, and seek representation of the interests of covered 
persons and consumers, without regard to party affiliation. Not 
fewer than 6 members shall be appointed upon the recommendation 
of the regional Federal Reserve Bank Presidents, on a rotating 
basis. 
(c) MEETINGS.—The Consumer Advisory Board shall meet from 
time to time at the call of the Director, but, at a minimum, shall 
meet at least twice in each year. 
(d) COMPENSATION AND TRAVEL EXPENSES.—Members of the 
Consumer Advisory Board who are not full-time employees of the 
United States shall— 
(1) be entitled to receive compensation at a rate fixed 
by the Director while attending meetings of the Consumer 
Advisory Board, including travel time; and 
(2) be allowed travel expenses, including transportation 
and subsistence, while away from their homes or regular places 
of business. 
SEC. 1015. COORDINATION. 
The Bureau shall coordinate with the Commission, the Com-
modity Futures Trading Commission, the Federal Trade Commis-
sion, and other Federal agencies and State regulators, as appro-
priate, to promote consistent regulatory treatment of consumer 
financial and investment products and services. 
SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS. 
(a) APPEARANCES BEFORE CONGRESS.—The Director of the 
Bureau shall appear before the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee on Financial 
Services and the Committee on Energy and Commerce of the House 
of Representatives at semi-annual hearings regarding the reports 
required under subsection (b). 
(b) REPORTS REQUIRED.—The Bureau shall, concurrent with 
each semi-annual hearing referred to in subsection (a), prepare 
and submit to the President and to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee 
on Financial Services and the Committee on Energy and Commerce 
of the House of Representatives, a report, beginning with the session 
following the designated transfer date. The Bureau may also submit 
such report to the Committee on Commerce, Science, and Transpor-
tation of the Senate. 
(c) CONTENTS.—The reports required by subsection (b) shall 
include—
H. R. 4173—600 
(1) a discussion of the significant problems faced by con-
sumers in shopping for or obtaining consumer financial products 
or services; 
(2) a justification of the budget request of the previous 
year; 
(3) a list of the significant rules and orders adopted by 
the Bureau, as well as other significant initiatives conducted 
by the Bureau, during the preceding year and the plan of 
the Bureau for rules, orders, or other initiatives to be under-
taken during the upcoming period; 
(4) an analysis of complaints about consumer financial 
products or services that the Bureau has received and collected 
in its central database on complaints during the preceding 
year; 
(5) a list, with a brief statement of the issues, of the 
public supervisory and enforcement actions to which the Bureau 
was a party during the preceding year; 
(6) the actions taken regarding rules, orders, and super-
visory actions with respect to covered persons which are not 
credit unions or depository institutions; 
(7) an assessment of significant actions by State attorneys 
general or State regulators relating to Federal consumer finan-
cial law; 
(8) an analysis of the efforts of the Bureau to fulfill the 
fair lending mission of the Bureau; and 
(9) an analysis of the efforts of the Bureau to increase 
workforce and contracting diversity consistent with the proce-
dures established by the Office of Minority and Women Inclu-
sion. 
SEC. 1017. FUNDING; PENALTIES AND FINES. 
(a) TRANSFER OF FUNDS FROM BOARD OF GOVERNORS.— 
(1) IN GENERAL.—Each year (or quarter of such year), begin-
ning on the designated transfer date, and each quarter there-
after, the Board of Governors shall transfer to the Bureau 
from the combined earnings of the Federal Reserve System, 
the amount determined by the Director to be reasonably nec-
essary to carry out the authorities of the Bureau under Federal 
consumer financial law, taking into account such other sums 
made available to the Bureau from the preceding year (or 
quarter of such year). 
(2) FUNDING CAP.— 
(A) IN GENERAL.—Notwithstanding paragraph (1), and 
in accordance with this paragraph, the amount that shall 
be transferred to the Bureau in each fiscal year shall 
not exceed a fixed percentage of the total operating 
expenses of the Federal Reserve System, as reported in 
the Annual Report, 2009, of the Board of Governors, equal 
to— 
(i) 10 percent of such expenses in fiscal year 2011; 
(ii) 11 percent of such expenses in fiscal year 2012; 
and 
(iii) 12 percent of such expenses in fiscal year 
2013, and in each year thereafter. 
(B) ADJUSTMENT
OF
AMOUNT.—The dollar amount 
referred to in subparagraph (A)(iii) shall be adjusted
H. R. 4173—601 
annually, using the percent increase, if any, in the employ-
ment cost index for total compensation for State and local 
government workers published by the Federal Government, 
or the successor index thereto, for the 12-month period 
ending on September 30 of the year preceding the transfer. 
(C) REVIEWABILITY.—Notwithstanding any other provi-
sion in this title, the funds derived from the Federal 
Reserve System pursuant to this subsection shall not be 
subject to review by the Committees on Appropriations 
of the House of Representatives and the Senate. 
(3) TRANSITION PERIOD.—Beginning on the date of enact-
ment of this Act and until the designated transfer date, the 
Board of Governors shall transfer to the Bureau the amount 
estimated by the Secretary needed to carry out the authorities 
granted to the Bureau under Federal consumer financial law, 
from the date of enactment of this Act until the designated 
transfer date. 
(4) BUDGET AND FINANCIAL MANAGEMENT.— 
(A) FINANCIAL OPERATING PLANS AND FORECASTS.—The 
Director shall provide to the Director of the Office of 
Management and Budget copies of the financial operating 
plans and forecasts of the Director, as prepared by the 
Director in the ordinary course of the operations of the 
Bureau, and copies of the quarterly reports of the financial 
condition and results of operations of the Bureau, as pre-
pared by the Director in the ordinary course of the oper-
ations of the Bureau. 
(B) FINANCIAL STATEMENTS.—The Bureau shall prepare 
annually a statement of— 
(i) assets and liabilities and surplus or deficit; 
(ii) income and expenses; and 
(iii) sources and application of funds. 
(C) FINANCIAL
MANAGEMENT
SYSTEMS.—The Bureau 
shall implement and maintain financial management sys-
tems that comply substantially with Federal financial 
management systems requirements and applicable Federal 
accounting standards. 
(D) ASSERTION OF INTERNAL CONTROLS.—The Director 
shall provide to the Comptroller General of the United 
States an assertion as to the effectiveness of the internal 
controls that apply to financial reporting by the Bureau, 
using the standards established in section 3512(c) of title 
31, United States Code. 
(E) RULE OF CONSTRUCTION.—This subsection may not 
be construed as implying any obligation on the part of 
the Director to consult with or obtain the consent or 
approval of the Director of the Office of Management and 
Budget with respect to any report, plan, forecast, or other 
information referred to in subparagraph (A) or any jurisdic-
tion or oversight over the affairs or operations of the 
Bureau. 
(F) FINANCIAL STATEMENTS.—The financial statements 
of the Bureau shall not be consolidated with the financial 
statements of either the Board of Governors or the Federal 
Reserve System. 
(5) AUDIT OF THE BUREAU.—
H. R. 4173—602 
(A) IN
GENERAL.—The Comptroller General shall 
annually audit the financial transactions of the Bureau 
in accordance with the United States generally accepted 
government auditing standards, as may be prescribed by 
the Comptroller General of the United States. The audit 
shall be conducted at the place or places where accounts 
of the Bureau are normally kept. The representatives of 
the Government Accountability Office shall have access 
to the personnel and to all books, accounts, documents, 
papers, records (including electronic records), reports, files, 
and all other papers, automated data, things, or property 
belonging to or under the control of or used or employed 
by the Bureau pertaining to its financial transactions and 
necessary to facilitate the audit, and such representatives 
shall be afforded full facilities for verifying transactions 
with the balances or securities held by depositories, fiscal 
agents, and custodians. All such books, accounts, docu-
ments, records, reports, files, papers, and property of the 
Bureau shall remain in possession and custody of the 
Bureau. The Comptroller General may obtain and duplicate 
any such books, accounts, documents, records, working 
papers, automated data and files, or other information 
relevant to such audit without cost to the Comptroller 
General, and the right of access of the Comptroller General 
to such information shall be enforceable pursuant to section 
716(c) of title 31, United States Code. 
(B) REPORT.—The Comptroller General shall submit 
to the Congress a report of each annual audit conducted 
under this subsection. The report to the Congress shall 
set forth the scope of the audit and shall include the 
statement of assets and liabilities and surplus or deficit, 
the statement of income and expenses, the statement of 
sources and application of funds, and such comments and 
information as may be deemed necessary to inform Con-
gress of the financial operations and condition of the 
Bureau, together with such recommendations with respect 
thereto as the Comptroller General may deem advisable. 
A copy of each report shall be furnished to the President 
and to the Bureau at the time submitted to the Congress. 
(C) ASSISTANCE AND COSTS.—For the purpose of con-
ducting an audit under this subsection, the Comptroller 
General may, in the discretion of the Comptroller General, 
employ by contract, without regard to section 3709 of the 
Revised Statutes of the United States (41 U.S.C. 5), profes-
sional services of firms and organizations of certified public 
accountants for temporary periods or for special purposes. 
Upon the request of the Comptroller General, the Director 
of the Bureau shall transfer to the Government Account-
ability Office from funds available, the amount requested 
by the Comptroller General to cover the full costs of any 
audit and report conducted by the Comptroller General. 
The Comptroller General shall credit funds transferred 
to the account established for salaries and expenses of 
the Government Accountability Office, and such amount 
shall be available upon receipt and without fiscal year 
limitation to cover the full costs of the audit and report. 
(b) CONSUMER FINANCIAL PROTECTION FUND.—
H. R. 4173—603 
(1) SEPARATE FUND IN FEDERAL RESERVE ESTABLISHED.— 
There is established in the Federal Reserve a separate fund, 
to be known as the ‘‘Bureau of Consumer Financial Protection 
Fund’’ (referred to in this section as the ‘‘Bureau Fund’’). The 
Bureau Fund shall be maintained and established at a Federal 
reserve bank, in accordance with such requirements as the 
Board of Governors may impose. 
(2) FUND RECEIPTS.—All amounts transferred to the Bureau 
under subsection (a) shall be deposited into the Bureau Fund. 
(3) INVESTMENT AUTHORITY.— 
(A) AMOUNTS IN BUREAU FUND MAY BE INVESTED.— 
The Bureau may request the Board of Governors to direct 
the investment of the portion of the Bureau Fund that 
is not, in the judgment of the Bureau, required to meet 
the current needs of the Bureau. 
(B) ELIGIBLE
INVESTMENTS.—Investments authorized 
by this paragraph shall be made in obligations of the 
United States or obligations that are guaranteed as to 
principal and interest by the United States, with maturities 
suitable to the needs of the Bureau Fund, as determined 
by the Bureau. 
(C) INTEREST AND PROCEEDS CREDITED.—The interest 
on, and the proceeds from the sale or redemption of, any 
obligations held in the Bureau Fund shall be credited to 
the Bureau Fund. 
(c) USE OF FUNDS.— 
(1) IN
GENERAL.—Funds obtained by, transferred to, or 
credited to the Bureau Fund shall be immediately available 
to the Bureau and under the control of the Director, and shall 
remain available until expended, to pay the expenses of the 
Bureau in carrying out its duties and responsibilities. The 
compensation of the Director and other employees of the Bureau 
and all other expenses thereof may be paid from, obtained 
by, transferred to, or credited to the Bureau Fund under this 
section. 
(2) FUNDS
THAT
ARE
NOT
GOVERNMENT
FUNDS.—Funds 
obtained by or transferred to the Bureau Fund shall not be 
construed to be Government funds or appropriated monies. 
(3) AMOUNTS NOT SUBJECT TO APPORTIONMENT.—Notwith-
standing any other provision of law, amounts in the Bureau 
Fund and in the Civil Penalty Fund established under sub-
section (d) shall not be subject to apportionment for purposes 
of chapter 15 of title 31, United States Code, or under any 
other authority. 
(d) PENALTIES AND FINES.— 
(1) ESTABLISHMENT
OF
VICTIMS
RELIEF
FUND.—There is 
established in the Federal Reserve a separate fund, to be known 
as the ‘‘Consumer Financial Civil Penalty Fund’’ (referred to 
in this section as the ‘‘Civil Penalty Fund’’). The Civil Penalty 
Fund shall be maintained and established at a Federal reserve 
bank, in accordance with such requirements as the Board of 
Governors may impose. If the Bureau obtains a civil penalty 
against any person in any judicial or administrative action 
under Federal consumer financial laws, the Bureau shall 
deposit into the Civil Penalty Fund, the amount of the penalty 
collected.
H. R. 4173—604 
(2) PAYMENT TO VICTIMS.—Amounts in the Civil Penalty 
Fund shall be available to the Bureau, without fiscal year 
limitation, for payments to the victims of activities for which 
civil penalties have been imposed under the Federal consumer 
financial laws. To the extent that such victims cannot be located 
or such payments are otherwise not practicable, the Bureau 
may use such funds for the purpose of consumer education 
and financial literacy programs. 
(e) AUTHORIZATION OF APPROPRIATIONS; ANNUAL REPORT.— 
(1) DETERMINATION
REGARDING
NEED
FOR
APPROPRIATED 
FUNDS.— 
(A) IN GENERAL.—The Director is authorized to deter-
mine that sums available to the Bureau under this section 
will not be sufficient to carry out the authorities of the 
Bureau under Federal consumer financial law for the 
upcoming year. 
(B) REPORT REQUIRED.—When making a determination 
under subparagraph (A), the Director shall prepare a report 
regarding the funding of the Bureau, including the assets 
and liabilities of the Bureau, and the extent to which 
the funding needs of the Bureau are anticipated to exceed 
the level of the amount set forth in subsection (a)(2). The 
Director shall submit the report to the President and to 
the Committee on Appropriations of the Senate and the 
Committee on Appropriations of the House of Representa-
tives. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.—If the Director 
makes the determination and submits the report pursuant to 
paragraph (1), there are hereby authorized to be appropriated 
to the Bureau, for the purposes of carrying out the authorities 
granted in Federal consumer financial law, $200,000,000 for 
each of fiscal years 2010, 2011, 2012, 2013, and 2014. 
(3) APPORTIONMENT.—Notwithstanding any other provision 
of law, the amounts in paragraph (2) shall be subject to appor-
tionment under section 1517 of title 31, United States Code, 
and restrictions that generally apply to the use of appropriated 
funds in title 31, United States Code, and other laws. 
(4) ANNUAL
REPORT.—The Director shall prepare and 
submit a report, on an annual basis, to the Committee on 
Appropriations of the Senate and the Committee on Appropria-
tions of the House of Representatives regarding the financial 
operating plans and forecasts of the Director, the financial 
condition and results of operations of the Bureau, and the 
sources and application of funds of the Bureau, including any 
funds appropriated in accordance with this subsection. 
SEC. 1018. EFFECTIVE DATE. 
This subtitle shall become effective on the date of enactment 
of this Act. 
Subtitle B—General Powers of the Bureau 
SEC. 1021. PURPOSE, OBJECTIVES, AND FUNCTIONS. 
(a) PURPOSE.—The Bureau shall seek to implement and, where 
applicable, enforce Federal consumer financial law consistently for 
the purpose of ensuring that all consumers have access to markets
H. R. 4173—605 
for consumer financial products and services and that markets 
for consumer financial products and services are fair, transparent, 
and competitive. 
(b) OBJECTIVES.—The Bureau is authorized to exercise its 
authorities under Federal consumer financial law for the purposes 
of ensuring that, with respect to consumer financial products and 
services— 
(1) consumers are provided with timely and understandable 
information to make responsible decisions about financial trans-
actions; 
(2) consumers are protected from unfair, deceptive, or abu-
sive acts and practices and from discrimination; 
(3) outdated, unnecessary, or unduly burdensome regula-
tions are regularly identified and addressed in order to reduce 
unwarranted regulatory burdens; 
(4) Federal consumer financial law is enforced consistently, 
without regard to the status of a person as a depository institu-
tion, in order to promote fair competition; and 
(5) markets for consumer financial products and services 
operate transparently and efficiently to facilitate access and 
innovation. 
(c) FUNCTIONS.—The primary functions of the Bureau are— 
(1) conducting financial education programs; 
(2) collecting, investigating, and responding to consumer 
complaints; 
(3) collecting, researching, monitoring, and publishing 
information relevant to the functioning of markets for consumer 
financial products and services to identify risks to consumers 
and the proper functioning of such markets; 
(4) subject to sections 1024 through 1026, supervising cov-
ered persons for compliance with Federal consumer financial 
law, and taking appropriate enforcement action to address vio-
lations of Federal consumer financial law; 
(5) issuing rules, orders, and guidance implementing Fed-
eral consumer financial law; and 
(6) performing such support activities as may be necessary 
or useful to facilitate the other functions of the Bureau. 
SEC. 1022. RULEMAKING AUTHORITY. 
(a) IN GENERAL.—The Bureau is authorized to exercise its 
authorities under Federal consumer financial law to administer, 
enforce, and otherwise implement the provisions of Federal con-
sumer financial law. 
(b) RULEMAKING, ORDERS, AND GUIDANCE.— 
(1) GENERAL AUTHORITY.—The Director may prescribe rules 
and issue orders and guidance, as may be necessary or appro-
priate to enable the Bureau to administer and carry out the 
purposes and objectives of the Federal consumer financial laws, 
and to prevent evasions thereof. 
(2) STANDARDS FOR RULEMAKING.—In prescribing a rule 
under the Federal consumer financial laws— 
(A) the Bureau shall consider— 
(i) the potential benefits and costs to consumers 
and covered persons, including the potential reduction 
of access by consumers to consumer financial products 
or services resulting from such rule; and
H. R. 4173—606 
(ii) the impact of proposed rules on covered per-
sons, as described in section 1026, and the impact 
on consumers in rural areas; 
(B) the Bureau shall consult with the appropriate 
prudential regulators or other Federal agencies prior to 
proposing a rule and during the comment process regarding 
consistency with prudential, market, or systemic objectives 
administered by such agencies; and 
(C) if, during the consultation process described in 
subparagraph (B), a prudential regulator provides the 
Bureau with a written objection to the proposed rule of 
the Bureau or a portion thereof, the Bureau shall include 
in the adopting release a description of the objection and 
the basis for the Bureau decision, if any, regarding such 
objection, except that nothing in this clause shall be con-
strued as altering or limiting the procedures under section 
1023 that may apply to any rule prescribed by the Bureau. 
(3) EXEMPTIONS.— 
(A) IN
GENERAL.—The Bureau, by rule, may condi-
tionally or unconditionally exempt any class of covered 
persons, service providers, or consumer financial products 
or services, from any provision of this title, or from any 
rule issued under this title, as the Bureau determines 
necessary or appropriate to carry out the purposes and 
objectives of this title, taking into consideration the factors 
in subparagraph (B). 
(B) FACTORS.—In issuing an exemption, as permitted 
under subparagraph (A), the Bureau shall, as appropriate, 
take into consideration— 
(i) the total assets of the class of covered persons; 
(ii) the volume of transactions involving consumer 
financial products or services in which the class of 
covered persons engages; and 
(iii) existing provisions of law which are applicable 
to the consumer financial product or service and the 
extent to which such provisions provide consumers with 
adequate protections. 
(4) EXCLUSIVE RULEMAKING AUTHORITY.— 
(A) IN
GENERAL.—Notwithstanding any other provi-
sions of Federal law and except as provided in section 
1061(b)(5), to the extent that a provision of Federal con-
sumer financial law authorizes the Bureau and another 
Federal agency to issue regulations under that provision 
of law for purposes of assuring compliance with Federal 
consumer financial law and any regulations thereunder, 
the Bureau shall have the exclusive authority to prescribe 
rules subject to those provisions of law. 
(B) DEFERENCE.—Notwithstanding any power granted 
to any Federal agency or to the Council under this title, 
and subject to section 1061(b)(5)(E), the deference that 
a court affords to the Bureau with respect to a determina-
tion by the Bureau regarding the meaning or interpretation 
of any provision of a Federal consumer financial law shall 
be applied as if the Bureau were the only agency authorized 
to apply, enforce, interpret, or administer the provisions 
of such Federal consumer financial law. 
(c) MONITORING.—
H. R. 4173—607 
(1) IN GENERAL.—In order to support its rulemaking and 
other functions, the Bureau shall monitor for risks to consumers 
in the offering or provision of consumer financial products 
or services, including developments in markets for such prod-
ucts or services. 
(2) CONSIDERATIONS.—In allocating its resources to perform 
the monitoring required by this section, the Bureau may con-
sider, among other factors— 
(A) likely risks and costs to consumers associated with 
buying or using a type of consumer financial product or 
service; 
(B) understanding by consumers of the risks of a type 
of consumer financial product or service; 
(C) the legal protections applicable to the offering or 
provision of a consumer financial product or service, 
including the extent to which the law is likely to adequately 
protect consumers; 
(D) rates of growth in the offering or provision of 
a consumer financial product or service; 
(E) the extent, if any, to which the risks of a consumer 
financial product or service may disproportionately affect 
traditionally underserved consumers; or 
(F) the types, number, and other pertinent characteris-
tics of covered persons that offer or provide the consumer 
financial product or service. 
(3) SIGNIFICANT FINDINGS.— 
(A) IN GENERAL.—The Bureau shall publish not fewer 
than 1 report of significant findings of its monitoring 
required by this subsection in each calendar year, beginning 
with the first calendar year that begins at least 1 year 
after the designated transfer date. 
(B) CONFIDENTIAL
INFORMATION.—The Bureau may 
make public such information obtained by the Bureau 
under this section as is in the public interest, through 
aggregated reports or other appropriate formats designed 
to protect confidential information in accordance with para-
graphs (4), (6), (8), and (9). 
(4) COLLECTION OF INFORMATION.— 
(A) IN
GENERAL.—In conducting any monitoring or 
assessment required by this section, the Bureau shall have 
the authority to gather information from time to time 
regarding the organization, business conduct, markets, and 
activities of covered persons and service providers. 
(B) METHODOLOGY.—In order to gather information 
described in subparagraph (A), the Bureau may— 
(i) gather and compile information from a variety 
of sources, including examination reports concerning 
covered persons or service providers, consumer com-
plaints, voluntary surveys and voluntary interviews 
of consumers, surveys and interviews with covered per-
sons and service providers, and review of available 
databases; and 
(ii) require covered persons and service providers 
participating in consumer financial services markets 
to file with the Bureau, under oath or otherwise, in 
such form and within such reasonable period of time 
as the Bureau may prescribe by rule or order, annual
H. R. 4173—608 
or special reports, or answers in writing to specific 
questions, furnishing information described in para-
graph (4), as necessary for the Bureau to fulfill the 
monitoring, assessment, and reporting responsibilities 
imposed by Congress. 
(C) LIMITATION.—The Bureau may not use its authori-
ties under this paragraph to obtain records from covered 
persons and service providers participating in consumer 
financial services markets for purposes of gathering or 
analyzing the personally identifiable financial information 
of consumers. 
(5) LIMITED INFORMATION GATHERING.—In order to assess 
whether a nondepository is a covered person, as defined in 
section 1002, the Bureau may require such nondepository to 
file with the Bureau, under oath or otherwise, in such form 
and within such reasonable period of time as the Bureau may 
prescribe by rule or order, annual or special reports, or answers 
in writing to specific questions. 
(6) CONFIDENTIALITY RULES.— 
(A) RULEMAKING.—The Bureau shall prescribe rules 
regarding the confidential treatment of information 
obtained from persons in connection with the exercise of 
its authorities under Federal consumer financial law. 
(B) ACCESS
BY
THE
BUREAU
TO
REPORTS
OF
OTHER 
REGULATORS.— 
(i) 
EXAMINATION
AND
FINANCIAL
CONDITION 
REPORTS.—Upon providing reasonable assurances of 
confidentiality, the Bureau shall have access to any 
report of examination or financial condition made by 
a prudential regulator or other Federal agency having 
jurisdiction over a covered person or service provider, 
and to all revisions made to any such report. 
(ii) 
PROVISION
OF
OTHER
REPORTS
TO
THE 
BUREAU.—In addition to the reports described in clause 
(i), a prudential regulator or other Federal agency 
having jurisdiction over a covered person or service 
provider may, in its discretion, furnish to the Bureau 
any other report or other confidential supervisory 
information concerning any insured depository institu-
tion, credit union, or other entity examined by such 
agency under authority of any provision of Federal 
law. 
(C) ACCESS BY OTHER REGULATORS TO REPORTS OF THE 
BUREAU.— 
(i) 
EXAMINATION
REPORTS.—Upon 
providing 
reasonable assurances of confidentiality, a prudential 
regulator, a State regulator, or any other Federal 
agency having jurisdiction over a covered person or 
service provider shall have access to any report of 
examination made by the Bureau with respect to such 
person, and to all revisions made to any such report. 
(ii) PROVISION OF OTHER REPORTS TO OTHER REGU-
LATORS.—In addition to the reports described in clause 
(i), the Bureau may, in its discretion, furnish to a 
prudential regulator or other agency having jurisdic-
tion over a covered person or service provider any
H. R. 4173—609 
other report or other confidential supervisory informa-
tion concerning such person examined by the Bureau 
under the authority of any other provision of Federal 
law. 
(7) REGISTRATION.— 
(A) IN
GENERAL.—The Bureau may prescribe rules 
regarding registration requirements applicable to a covered 
person, other than an insured depository institution, 
insured credit union, or related person. 
(B) REGISTRATION INFORMATION.—Subject to rules pre-
scribed by the Bureau, the Bureau may publicly disclose 
registration information to facilitate the ability of con-
sumers to identify covered persons that are registered with 
the Bureau. 
(C) CONSULTATION WITH STATE AGENCIES.—In devel-
oping and implementing registration requirements under 
this paragraph, the Bureau shall consult with State agen-
cies regarding requirements or systems (including coordi-
nated or combined systems for registration), where appro-
priate. 
(8) PRIVACY
CONSIDERATIONS.—In collecting information 
from any person, publicly releasing information held by the 
Bureau, or requiring covered persons to publicly report informa-
tion, the Bureau shall take steps to ensure that proprietary, 
personal, or confidential consumer information that is protected 
from public disclosure under section 552(b) or 552a of title 
5, United States Code, or any other provision of law, is not 
made public under this title. 
(9) CONSUMER PRIVACY.— 
(A) IN GENERAL.—The Bureau may not obtain from 
a covered person or service provider any personally identifi-
able financial information about a consumer from the finan-
cial records of the covered person or service provider, 
except— 
(i) if the financial records are reasonably described 
in a request by the Bureau and the consumer provides 
written permission for the disclosure of such informa-
tion by the covered person or service provider to the 
Bureau; or 
(ii) as may be specifically permitted or required 
under other applicable provisions of law and in accord-
ance with the Right to Financial Privacy Act of 1978 
(12 U.S.C. 3401 et seq.). 
(B) TREATMENT OF COVERED PERSON OR SERVICE PRO-
VIDER.—With respect to the application of any provision 
of the Right to Financial Privacy Act of 1978, to a disclosure 
by a covered person or service provider subject to this 
subsection, the covered person or service provider shall 
be treated as if it were a ‘‘financial institution’’, as defined 
in section 1101 of that Act (12 U.S.C. 3401). 
(d) ASSESSMENT OF SIGNIFICANT RULES.— 
(1) IN GENERAL.—The Bureau shall conduct an assessment 
of each significant rule or order adopted by the Bureau under 
Federal consumer financial law. The assessment shall address, 
among other relevant factors, the effectiveness of the rule or 
order in meeting the purposes and objectives of this title and 
the specific goals stated by the Bureau. The assessment shall
H. R. 4173—610 
reflect available evidence and any data that the Bureau reason-
ably may collect. 
(2) REPORTS.—The Bureau shall publish a report of its 
assessment under this subsection not later than 5 years after 
the effective date of the subject rule or order. 
(3) PUBLIC COMMENT REQUIRED.—Before publishing a report 
of its assessment, the Bureau shall invite public comment on 
recommendations for modifying, expanding, or eliminating the 
newly adopted significant rule or order. 
SEC. 1023. REVIEW OF BUREAU REGULATIONS. 
(a) REVIEW OF BUREAU REGULATIONS.—On the petition of a 
member agency of the Council, the Council may set aside a final 
regulation prescribed by the Bureau, or any provision thereof, if 
the Council decides, in accordance with subsection (c), that the 
regulation or provision would put the safety and soundness of 
the United States banking system or the stability of the financial 
system of the United States at risk. 
(b) PETITION.— 
(1) PROCEDURE.—An agency represented by a member of 
the Council may petition the Council, in writing, and in accord-
ance with rules prescribed pursuant to subsection (f), to stay 
the effectiveness of, or set aside, a regulation if the member 
agency filing the petition— 
(A) has in good faith attempted to work with the 
Bureau to resolve concerns regarding the effect of the rule 
on the safety and soundness of the United States banking 
system or the stability of the financial system of the United 
States; and 
(B) files the petition with the Council not later than 
10 days after the date on which the regulation has been 
published in the Federal Register. 
(2) PUBLICATION.—Any petition filed with the Council 
under this section shall be published in the Federal Register 
and transmitted contemporaneously with filing to the Com-
mittee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of Rep-
resentatives. 
(c) STAYS AND SET ASIDES.— 
(1) STAY.— 
(A) IN GENERAL.—Upon the request of any member 
agency, the Chairperson of the Council may stay the 
effectiveness of a regulation for the purpose of allowing 
appropriate consideration of the petition by the Council. 
(B) EXPIRATION.—A stay issued under this paragraph 
shall expire on the earlier of— 
(i) 90 days after the date of filing of the petition 
under subsection (b); or 
(ii) the date on which the Council makes a decision 
under paragraph (3). 
(2) NO ADVERSE INFERENCE.—After the expiration of any 
stay imposed under this section, no inference shall be drawn 
regarding the validity or enforceability of a regulation which 
was the subject of the petition. 
(3) VOTE.— 
(A) IN GENERAL.—The decision to issue a stay of, or 
set aside, any regulation under this section shall be made
H. R. 4173—611 
only with the affirmative vote in accordance with subpara-
graph (B) of 2⁄3 of the members of the Council then serving. 
(B) AUTHORIZATION TO VOTE.—A member of the Council 
may vote to stay the effectiveness of, or set aside, a final 
regulation prescribed by the Bureau only if the agency 
or department represented by that member has— 
(i) considered any relevant information provided 
by the agency submitting the petition and by the 
Bureau; and 
(ii) made an official determination, at a public 
meeting where applicable, that the regulation which 
is the subject of the petition would put the safety 
and soundness of the United States banking system 
or the stability of the financial system of the United 
States at risk. 
(4) DECISIONS TO SET ASIDE.— 
(A) EFFECT OF DECISION.—A decision by the Council 
to set aside a regulation prescribed by the Bureau, or 
provision thereof, shall render such regulation, or provision 
thereof, unenforceable. 
(B) TIMELY ACTION REQUIRED.—The Council may not 
issue a decision to set aside a regulation, or provision 
thereof, which is the subject of a petition under this section 
after the expiration of the later of— 
(i) 45 days following the date of filing of the peti-
tion, unless a stay is issued under paragraph (1); or 
(ii) the expiration of a stay issued by the Council 
under this section. 
(C) SEPARATE
AUTHORITY.—The issuance of a stay 
under this section does not affect the authority of the 
Council to set aside a regulation. 
(5) DISMISSAL
DUE
TO
INACTION.—A petition under this 
section shall be deemed dismissed if the Council has not issued 
a decision to set aside a regulation, or provision thereof, within 
the period for timely action under paragraph (4)(B). 
(6) PUBLICATION
OF
DECISION.—Any decision under this 
subsection to issue a stay of, or set aside, a regulation or 
provision thereof shall be published by the Council in the 
Federal Register as soon as practicable after the decision is 
made, with an explanation of the reasons for the decision. 
(7) RULEMAKING
PROCEDURES
INAPPLICABLE.—The notice 
and comment procedures under section 553 of title 5, United 
States Code, shall not apply to any decision under this section 
of the Council to issue a stay of, or set aside, a regulation. 
(8) JUDICIAL REVIEW OF DECISIONS BY THE COUNCIL.—A 
decision by the Council to set aside a regulation prescribed 
by the Bureau, or provision thereof, shall be subject to review 
under chapter 7 of title 5, United States Code. 
(d) APPLICATION OF OTHER LAW.—Nothing in this section shall 
be construed as altering, limiting, or restricting the application 
of any other provision of law, except as otherwise specifically pro-
vided in this section, including chapter 5 and chapter 7 of title 
5, United States Code, to a regulation which is the subject of 
a petition filed under this section. 
(e) SAVINGS CLAUSE.—Nothing in this section shall be construed 
as limiting or restricting the Bureau from engaging in a rulemaking 
in accordance with applicable law.
H. R. 4173—612 
(f) IMPLEMENTING RULES.—The Council shall prescribe proce-
dural rules to implement this section. 
SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED PERSONS. 
(a) SCOPE OF COVERAGE.— 
(1) APPLICABILITY.—Notwithstanding any other provision 
of this title, and except as provided in paragraph (3), this 
section shall apply to any covered person who— 
(A) offers or provides origination, brokerage, or serv-
icing of loans secured by real estate for use by consumers 
primarily for personal, family, or household purposes, or 
loan modification or foreclosure relief services in connection 
with such loans; 
(B) is a larger participant of a market for other con-
sumer financial products or services, as defined by rule 
in accordance with paragraph (2); 
(C) the Bureau has reasonable cause to determine, 
by order, after notice to the covered person and a reason-
able opportunity for such covered person to respond, based 
on complaints collected through the system under section 
1013(b)(3) or information from other sources, that such 
covered person is engaging, or has engaged, in conduct 
that poses risks to consumers with regard to the offering 
or provision of consumer financial products or services; 
(D) offers or provides to a consumer any private edu-
cation loan, as defined in section 140 of the Truth in 
Lending Act (15 U.S.C. 1650), notwithstanding section 
1027(a)(2)(A) and subject to section 1027(a)(2)(C); or 
(E) offers or provides to a consumer a payday loan. 
(2) RULEMAKING TO DEFINE COVERED PERSONS SUBJECT TO 
THIS
SECTION.—The Bureau shall consult with the Federal 
Trade Commission prior to issuing a rule, in accordance with 
paragraph (1)(B), to define covered persons subject to this sec-
tion. The Bureau shall issue its initial rule not later than 
1 year after the designated transfer date. 
(3) RULES OF CONSTRUCTION.— 
(A) CERTAIN PERSONS EXCLUDED.—This section shall 
not apply to persons described in section 1025(a) or 1026(a). 
(B) ACTIVITY
LEVELS.—For purposes of computing 
activity levels under paragraph (1) or rules issued there-
under, activities of affiliated companies (other than insured 
depository institutions or insured credit unions) shall be 
aggregated. 
(b) SUPERVISION.— 
(1) IN GENERAL.—The Bureau shall require reports and 
conduct examinations on a periodic basis of persons described 
in subsection (a)(1) for purposes of— 
(A) assessing compliance with the requirements of Fed-
eral consumer financial law; 
(B) obtaining information about the activities and 
compliance systems or procedures of such person; and 
(C) detecting and assessing risks to consumers and 
to markets for consumer financial products and services. 
(2) RISK-BASED SUPERVISION PROGRAM.—The Bureau shall 
exercise its authority under paragraph (1) in a manner designed 
to ensure that such exercise, with respect to persons described 
in subsection (a)(1), is based on the assessment by the Bureau
H. R. 4173—613 
of the risks posed to consumers in the relevant product markets 
and geographic markets, and taking into consideration, as 
applicable— 
(A) the asset size of the covered person; 
(B) the volume of transactions involving consumer 
financial products or services in which the covered person 
engages; 
(C) the risks to consumers created by the provision 
of such consumer financial products or services; 
(D) the extent to which such institutions are subject 
to oversight by State authorities for consumer protection; 
and 
(E) any other factors that the Bureau determines to 
be relevant to a class of covered persons. 
(3) COORDINATION.—To minimize regulatory burden, the 
Bureau shall coordinate its supervisory activities with the 
supervisory activities conducted by prudential regulators and 
the State bank regulatory authorities, including establishing 
their respective schedules for examining persons described in 
subsection (a)(1) and requirements regarding reports to be sub-
mitted by such persons. 
(4) USE OF EXISTING REPORTS.—The Bureau shall, to the 
fullest extent possible, use— 
(A) reports pertaining to persons described in sub-
section (a)(1) that have been provided or required to have 
been provided to a Federal or State agency; and 
(B) information that has been reported publicly. 
(5) PRESERVATION
OF
AUTHORITY.—Nothing in this title 
may be construed as limiting the authority of the Director 
to require reports from persons described in subsection (a)(1), 
as permitted under paragraph (1), regarding information owned 
or under the control of such person, regardless of whether 
such information is maintained, stored, or processed by another 
person. 
(6) REPORTS OF TAX LAW NONCOMPLIANCE.—The Bureau 
shall provide the Commissioner of Internal Revenue with any 
report of examination or related information identifying possible 
tax law noncompliance. 
(7) REGISTRATION, RECORDKEEPING
AND
OTHER
REQUIRE-
MENTS FOR CERTAIN PERSONS.— 
(A) IN
GENERAL.—The Bureau shall prescribe rules 
to facilitate supervision of persons described in subsection 
(a)(1) and assessment and detection of risks to consumers. 
(B) RECORDKEEPING.—The Bureau may require a per-
son described in subsection (a)(1), to generate, provide, 
or retain records for the purposes of facilitating supervision 
of such persons and assessing and detecting risks to con-
sumers. 
(C) REQUIREMENTS
CONCERNING
OBLIGATIONS.—The 
Bureau may prescribe rules regarding a person described 
in subsection (a)(1), to ensure that such persons are legiti-
mate entities and are able to perform their obligations 
to consumers. Such requirements may include background 
checks for principals, officers, directors, or key personnel 
and bonding or other appropriate financial requirements.
H. R. 4173—614 
(D) CONSULTATION WITH STATE AGENCIES.—In devel-
oping and implementing requirements under this para-
graph, the Bureau shall consult with State agencies 
regarding requirements or systems (including coordinated 
or combined systems for registration), where appropriate. 
(c) ENFORCEMENT AUTHORITY.— 
(1) THE
BUREAU
TO
HAVE
ENFORCEMENT
AUTHORITY.— 
Except as provided in paragraph (3) and section 1061, with 
respect to any person described in subsection (a)(1), to the 
extent that Federal law authorizes the Bureau and another 
Federal agency to enforce Federal consumer financial law, the 
Bureau shall have exclusive authority to enforce that Federal 
consumer financial law. 
(2) REFERRAL.—Any Federal agency authorized to enforce 
a Federal consumer financial law described in paragraph (1) 
may recommend in writing to the Bureau that the Bureau 
initiate an enforcement proceeding, as the Bureau is authorized 
by that Federal law or by this title. 
(3) COORDINATION WITH THE FEDERAL TRADE COMMISSION.— 
(A) IN GENERAL.—The Bureau and the Federal Trade 
Commission shall negotiate an agreement for coordinating 
with respect to enforcement actions by each agency 
regarding the offering or provision of consumer financial 
products or services by any covered person that is described 
in subsection (a)(1), or service providers thereto. The agree-
ment shall include procedures for notice to the other 
agency, where feasible, prior to initiating a civil action 
to enforce any Federal law regarding the offering or provi-
sion of consumer financial products or services. 
(B) CIVIL ACTIONS.—Whenever a civil action has been 
filed by, or on behalf of, the Bureau or the Federal Trade 
Commission for any violation of any provision of Federal 
law described in subparagraph (A), or any regulation pre-
scribed under such provision of law— 
(i) the other agency may not, during the pendency 
of that action, institute a civil action under such provi-
sion of law against any defendant named in the com-
plaint in such pending action for any violation alleged 
in the complaint; and 
(ii) the Bureau or the Federal Trade Commission 
may intervene as a party in any such action brought 
by the other agency, and, upon intervening— 
(I) be heard on all matters arising in such 
enforcement action; and 
(II) file petitions for appeal in such actions. 
(C) AGREEMENT TERMS.—The terms of any agreement 
negotiated under subparagraph (A) may modify or super-
sede the provisions of subparagraph (B). 
(D) DEADLINE.—The agencies shall reach the agree-
ment required under subparagraph (A) not later than 6 
months after the designated transfer date. 
(d) EXCLUSIVE RULEMAKING AND EXAMINATION AUTHORITY.— 
Notwithstanding any other provision of Federal law and except 
as provided in section 1061, to the extent that Federal law author-
izes the Bureau and another Federal agency to issue regulations 
or guidance, conduct examinations, or require reports from a person 
described in subsection (a)(1) under such law for purposes of
H. R. 4173—615 
assuring compliance with Federal consumer financial law and any 
regulations thereunder, the Bureau shall have the exclusive 
authority to prescribe rules, issue guidance, conduct examinations, 
require reports, or issue exemptions with regard to a person 
described in subsection (a)(1), subject to those provisions of law. 
(e) SERVICE
PROVIDERS.—A service provider to a person 
described in subsection (a)(1) shall be subject to the authority 
of the Bureau under this section, to the same extent as if such 
service provider were engaged in a service relationship with a 
bank, and the Bureau were an appropriate Federal banking agency 
under section 7(c) of the Bank Service Company Act (12 U.S.C. 
1867(c)). In conducting any examination or requiring any report 
from a service provider subject to this subsection, the Bureau shall 
coordinate with the appropriate prudential regulator, as applicable. 
(f) 
PRESERVATION
OF
FARM
CREDIT
ADMINISTRATION 
AUTHORITY.—No provision of this title may be construed as modi-
fying, limiting, or otherwise affecting the authority of the Farm 
Credit Administration. 
SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS ASSOCIA-
TIONS, AND CREDIT UNIONS. 
(a) SCOPE OF COVERAGE.—This section shall apply to any cov-
ered person that is— 
(1) an insured depository institution with total assets of 
more than $10,000,000,000 and any affiliate thereof; or 
(2) an insured credit union with total assets of more than 
$10,000,000,000 and any affiliate thereof. 
(b) SUPERVISION.— 
(1) IN
GENERAL.—The Bureau shall have exclusive 
authority to require reports and conduct examinations on a 
periodic basis of persons described in subsection (a) for purposes 
of— 
(A) assessing compliance with the requirements of Fed-
eral consumer financial laws; 
(B) obtaining information about the activities subject 
to such laws and the associated compliance systems or 
procedures of such persons; and 
(C) detecting and assessing associated risks to con-
sumers and to markets for consumer financial products 
and services. 
(2) COORDINATION.—To minimize regulatory burden, the 
Bureau shall coordinate its supervisory activities with the 
supervisory activities conducted by prudential regulators and 
the State bank regulatory authorities, including consultation 
regarding their respective schedules for examining such persons 
described in subsection (a) and requirements regarding reports 
to be submitted by such persons. 
(3) USE OF EXISTING REPORTS.—The Bureau shall, to the 
fullest extent possible, use— 
(A) reports pertaining to a person described in sub-
section (a) that have been provided or required to have 
been provided to a Federal or State agency; and 
(B) information that has been reported publicly. 
(4) PRESERVATION
OF
AUTHORITY.—Nothing in this title 
may be construed as limiting the authority of the Director 
to require reports from a person described in subsection (a), 
as permitted under paragraph (1), regarding information owned
H. R. 4173—616 
or under the control of such person, regardless of whether 
such information is maintained, stored, or processed by another 
person. 
(5) REPORTS OF TAX LAW NONCOMPLIANCE.—The Bureau 
shall provide the Commissioner of Internal Revenue with any 
report of examination or related information identifying possible 
tax law noncompliance. 
(c) PRIMARY ENFORCEMENT AUTHORITY.— 
(1) 
THE
BUREAU
TO
HAVE
PRIMARY
ENFORCEMENT 
AUTHORITY.—To the extent that the Bureau and another Fed-
eral agency are authorized to enforce a Federal consumer finan-
cial law, the Bureau shall have primary authority to enforce 
that Federal consumer financial law with respect to any person 
described in subsection (a). 
(2) REFERRAL.—Any Federal agency, other than the Federal 
Trade Commission, that is authorized to enforce a Federal 
consumer financial law may recommend, in writing, to the 
Bureau that the Bureau initiate an enforcement proceeding 
with respect to a person described in subsection (a), as the 
Bureau is authorized to do by that Federal consumer financial 
law. 
(3) BACKUP ENFORCEMENT AUTHORITY OF OTHER FEDERAL 
AGENCY.—If the Bureau does not, before the end of the 120- 
day period beginning on the date on which the Bureau receives 
a recommendation under paragraph (2), initiate an enforcement 
proceeding, the other agency referred to in paragraph (2) may 
initiate an enforcement proceeding, including performing follow 
up supervisory and support functions incidental thereto, to 
assure compliance with such proceeding. 
(d) SERVICE
PROVIDERS.—A service provider to a person 
described in subsection (a) shall be subject to the authority of 
the Bureau under this section, to the same extent as if the Bureau 
were an appropriate Federal banking agency under section 7(c) 
of the Bank Service Company Act 12 U.S.C. 1867(c). In conducting 
any examination or requiring any report from a service provider 
subject to this subsection, the Bureau shall coordinate with the 
appropriate prudential regulator. 
(e) SIMULTANEOUS AND COORDINATED SUPERVISORY ACTION.— 
(1) EXAMINATIONS.—A prudential regulator and the Bureau 
shall, with respect to each insured depository institution, 
insured credit union, or other covered person described in sub-
section (a) that is supervised by the prudential regulator and 
the Bureau, respectively— 
(A) coordinate the scheduling of examinations of the 
insured depository institution, insured credit union, or 
other covered person described in subsection (a); 
(B) conduct simultaneous examinations of each insured 
depository institution or insured credit union, unless such 
institution requests examinations to be conducted sepa-
rately; 
(C) share each draft report of examination with the 
other agency and permit the receiving agency a reasonable 
opportunity (which shall not be less than a period of 30 
days after the date of receipt) to comment on the draft 
report before such report is made final; and
H. R. 4173—617 
(D) prior to issuing a final report of examination or 
taking supervisory action, take into consideration concerns, 
if any, raised in the comments made by the other agency. 
(2) COORDINATION
WITH
STATE
BANK
SUPERVISORS.—The 
Bureau shall pursue arrangements and agreements with State 
bank supervisors to coordinate examinations, consistent with 
paragraph (1). 
(3) AVOIDANCE OF CONFLICT IN SUPERVISION.— 
(A) REQUEST.—If the proposed supervisory determina-
tions of the Bureau and a prudential regulator (in this 
section referred to collectively as the ‘‘agencies’’) are con-
flicting, an insured depository institution, insured credit 
union, or other covered person described in subsection (a) 
may request the agencies to coordinate and present a joint 
statement of coordinated supervisory action. 
(B) JOINT STATEMENT.—The agencies shall provide a 
joint statement under subparagraph (A), not later than 
30 days after the date of receipt of the request of the 
insured depository institution, credit union, or covered per-
son described in subsection (a). 
(4) APPEALS TO GOVERNING PANEL.— 
(A) IN GENERAL.—If the agencies do not resolve the 
conflict or issue a joint statement required by subparagraph 
(B), or if either of the agencies takes or attempts to take 
any supervisory action relating to the request for the joint 
statement without the consent of the other agency, an 
insured depository institution, insured credit union, or 
other covered person described in subsection (a) may 
institute an appeal to a governing panel, as provided in 
this subsection, not later than 30 days after the expiration 
of the period during which a joint statement is required 
to be filed under paragraph (3)(B). 
(B) COMPOSITION
OF
GOVERNING
PANEL.—The gov-
erning panel for an appeal under this paragraph shall 
be composed of— 
(i) a representative from the Bureau and a rep-
resentative of the prudential regulator, both of whom— 
(I) have not participated in the material super-
visory determinations under appeal; and 
(II) do not directly or indirectly report to the 
person who participated materially in the super-
visory determinations under appeal; and 
(ii) one individual representative, to be determined 
on a rotating basis, from among the Board of Gov-
ernors, the Corporation, the National Credit Union 
Administration, and the Office of the Comptroller of 
the Currency, other than any agency involved in the 
subject dispute. 
(C) CONDUCT
OF
APPEAL.—In an appeal under this 
paragraph— 
(i) the insured depository institution, insured 
credit union, or other covered person described in sub-
section (a)— 
(I) shall include in its appeal all the facts 
and legal arguments pertaining to the matter; and
H. R. 4173—618 
(II) may, through counsel, employees, or rep-
resentatives, appear before the governing panel 
in person or by telephone; and 
(ii) the governing panel— 
(I) may request the insured depository institu-
tion, insured credit union, or other covered person 
described in subsection (a), the Bureau, or the 
prudential regulator to produce additional informa-
tion relevant to the appeal; and 
(II) by a majority vote of its members, shall 
provide a final determination, in writing, not later 
than 30 days after the date of filing of an 
informationally complete appeal, or such longer 
period as the panel and the insured depository 
institution, insured credit union, or other covered 
person described in subsection (a) may jointly 
agree. 
(D) PUBLIC AVAILABILITY OF DETERMINATIONS.—A gov-
erning panel shall publish all information contained in 
a determination by the governing panel, with appropriate 
redactions of information that would be subject to an 
exemption from disclosure under section 552 of title 5, 
United States Code. 
(E) PROHIBITION AGAINST RETALIATION.—The Bureau 
and the prudential regulators shall prescribe rules to pro-
vide safeguards from retaliation against the insured deposi-
tory institution, insured credit union, or other covered per-
son described in subsection (a) instituting an appeal under 
this paragraph, as well as their officers and employees. 
(F) LIMITATION.—The process provided in this para-
graph shall not apply to a determination by a prudential 
regulator to appoint a conservator or receiver for an insured 
depository institution or a liquidating agent for an insured 
credit union, as the case may be, or a decision to take 
action pursuant to section 38 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831o) or section 212 of the Federal 
Credit Union Act (112 U.S.C. 1790a), as applicable. 
(G) EFFECT
ON
OTHER
AUTHORITY.—Nothing in this 
section shall modify or limit the authority of the Bureau 
to interpret, or take enforcement action under, any Federal 
consumer financial law, or the authority of a prudential 
regulator to interpret or take enforcement action under 
any other provision of Federal law for safety and soundness 
purposes. 
SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND CREDIT 
UNIONS. 
(a) SCOPE OF COVERAGE.—This section shall apply to any cov-
ered person that is— 
(1) an insured depository institution with total assets of 
$10,000,000,000 or less; or 
(2) 
an 
insured 
credit 
union 
with 
total 
assets 
of 
$10,000,000,000 or less. 
(b) REPORTS.—The Director may require reports from a person 
described in subsection (a), as necessary to support the role of 
the Bureau in implementing Federal consumer financial law, to
H. R. 4173—619 
support its examination activities under subsection (c), and to assess 
and detect risks to consumers and consumer financial markets. 
(1) USE OF EXISTING REPORTS.—The Bureau shall, to the 
fullest extent possible, use— 
(A) reports pertaining to a person described in sub-
section (a) that have been provided or required to have 
been provided to a Federal or State agency; and 
(B) information that has been reported publicly. 
(2) PRESERVATION
OF
AUTHORITY.—Nothing in this sub-
section may be construed as limiting the authority of the 
Director from requiring from a person described in subsection 
(a), as permitted under paragraph (1), information owned or 
under the control of such person, regardless of whether such 
information is maintained, stored, or processed by another per-
son. 
(3) REPORTS OF TAX LAW NONCOMPLIANCE.—The Bureau 
shall provide the Commissioner of Internal Revenue with any 
report of examination or related information identifying possible 
tax law noncompliance. 
(c) EXAMINATIONS.— 
(1) IN GENERAL.—The Bureau may, at its discretion, include 
examiners on a sampling basis of the examinations performed 
by the prudential regulator to assess compliance with the 
requirements of Federal consumer financial law of persons 
described in subsection (a). 
(2) AGENCY
COORDINATION.—The prudential regulator 
shall— 
(A) provide all reports, records, and documentation 
related to the examination process for any institution 
included in the sample referred to in paragraph (1) to 
the Bureau on a timely and continual basis; 
(B) involve such Bureau examiner in the entire exam-
ination process for such person; and 
(C) consider input of the Bureau concerning the scope 
of an examination, conduct of the examination, the contents 
of the examination report, the designation of matters 
requiring attention, and examination ratings. 
(d) ENFORCEMENT.— 
(1) IN GENERAL.—Except for requiring reports under sub-
section (b), the prudential regulator is authorized to enforce 
the requirements of Federal consumer financial laws and, with 
respect to a covered person described in subsection (a), shall 
have exclusive authority (relative to the Bureau) to enforce 
such laws . 
(2) COORDINATION WITH PRUDENTIAL REGULATOR.— 
(A) REFERRAL.—When the Bureau has reason to believe 
that a person described in subsection (a) has engaged in 
a material violation of a Federal consumer financial law, 
the Bureau shall notify the prudential regulator in writing 
and recommend appropriate action to respond. 
(B) RESPONSE.—Upon receiving a recommendation 
under subparagraph (A), the prudential regulator shall pro-
vide a written response to the Bureau not later than 60 
days thereafter. 
(e) SERVICE PROVIDERS.—A service provider to a substantial 
number of persons described in subsection (a) shall be subject 
to the authority of the Bureau under section 1025 to the same
H. R. 4173—620 
extent as if the Bureau were an appropriate Federal bank agency 
under section 7(c) of the Bank Service Company Act (12 U.S.C. 
1867(c)). When conducting any examination or requiring any report 
from a service provider subject to this subsection, the Bureau shall 
coordinate with the appropriate prudential regulator. 
SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU; PRESERVA-
TION OF AUTHORITIES. 
(a) EXCLUSION
FOR
MERCHANTS, RETAILERS, 
AND
OTHER 
SELLERS OF NONFINANCIAL GOODS OR SERVICES.— 
(1) SALE
OR
BROKERAGE
OF
NONFINANCIAL
GOOD
OR 
SERVICE.—The Bureau may not exercise any rulemaking, super-
visory, enforcement or other authority under this title with 
respect to a person who is a merchant, retailer, or seller of 
any nonfinancial good or service and is engaged in the sale 
or brokerage of such nonfinancial good or service, except to 
the extent that such person is engaged in offering or providing 
any consumer financial product or service, or is otherwise sub-
ject to any enumerated consumer law or any law for which 
authorities are transferred under subtitle F or H. 
(2) OFFERING OR PROVISION OF CERTAIN CONSUMER FINAN-
CIAL PRODUCTS OR SERVICES IN CONNECTION WITH THE SALE 
OR BROKERAGE OF NONFINANCIAL GOOD OR SERVICE.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), and subject to subparagraph (C), the Bureau may 
not exercise any rulemaking, supervisory, enforcement, or 
other authority under this title with respect to a merchant, 
retailer, or seller of nonfinancial goods or services, but 
only to the extent that such person— 
(i) extends credit directly to a consumer, in a case 
in which the good or service being provided is not 
itself a consumer financial product or service (other 
than credit described in this subparagraph), exclusively 
for the purpose of enabling that consumer to purchase 
such nonfinancial good or service directly from the 
merchant, retailer, or seller; 
(ii) directly, or through an agreement with another 
person, collects debt arising from credit extended as 
described in clause (i); or 
(iii) sells or conveys debt described in clause (i) 
that is delinquent or otherwise in default. 
(B) APPLICABILITY.—Subparagraph (A) does not apply 
to any credit transaction or collection of debt, other than 
as described in subparagraph (C)(i), arising from a trans-
action described in subparagraph (A)— 
(i) in which the merchant, retailer, or seller of 
nonfinancial goods or services assigns, sells or other-
wise conveys to another person such debt owed by 
the consumer (except for a sale of debt that is delin-
quent or otherwise in default, as described in subpara-
graph (A)(iii)); 
(ii) in which the credit extended significantly 
exceeds the market value of the nonfinancial good or 
service provided, or the Bureau otherwise finds that 
the sale of the nonfinancial good or service is done 
as a subterfuge, so as to evade or circumvent the 
provisions of this title; or
H. R. 4173—621 
(iii) in which the merchant, retailer, or seller of 
nonfinancial goods or services regularly extends credit 
and the credit is subject to a finance charge. 
(C) LIMITATIONS.— 
(i) IN
GENERAL.—Notwithstanding subparagraph 
(B), subparagraph (A) shall apply with respect to a 
merchant, retailer, or seller of nonfinancial goods or 
services that is not engaged significantly in offering 
or providing consumer financial products or services. 
(ii) EXCEPTION.—Subparagraph (A) and clause (i) 
of this subparagraph do not apply to any merchant, 
retailer, or seller of nonfinancial goods or services— 
(I) if such merchant, retailer, or seller of non-
financial goods or services is engaged in a trans-
action described in subparagraph (B)(i) or (B)(ii); 
or 
(II) to the extent that such merchant, retailer, 
or seller is subject to any enumerated consumer 
law or any law for which authorities are trans-
ferred under subtitle F or H, but the Bureau may 
exercise such authority only with respect to that 
law. 
(D) RULES.— 
(i) AUTHORITY OF OTHER AGENCIES.—No provision 
of this title shall be construed as modifying, limiting, 
or 
superseding 
the 
supervisory 
or 
enforcement 
authority of the Federal Trade Commission or any 
other agency (other than the Bureau) with respect 
to credit extended, or the collection of debt arising 
from such extension, directly by a merchant or retailer 
to a consumer exclusively for the purpose of enabling 
that consumer to purchase nonfinancial goods or serv-
ices directly from the merchant or retailer. 
(ii) SMALL BUSINESSES.—A merchant, retailer, or 
seller of nonfinancial goods or services that would 
otherwise be subject to the authority of the Bureau 
solely by virtue of the application of subparagraph 
(B)(iii) shall be deemed not to be engaged significantly 
in offering or providing consumer financial products 
or services under subparagraph (C)(i), if such person— 
(I) only extends credit for the sale of non-
financial goods or services, as described in 
subparagraph (A)(i); 
(II) retains such credit on its own accounts 
(except to sell or convey such debt that is delin-
quent or otherwise in default); and 
(III) meets the relevant industry size threshold 
to be a small business concern, based on annual 
receipts, pursuant to section 3 of the Small Busi-
ness Act (15 U.S.C. 632) and the implementing 
rules thereunder. 
(iii) INITIAL YEAR.—A merchant, retailer, or seller 
of nonfinancial goods or services shall be deemed to 
meet the relevant industry size threshold described 
in clause (ii)(III) during the first year of operations 
of that business concern if, during that year, the
H. R. 4173—622 
receipts of that business concern reasonably are 
expected to meet that size threshold. 
(iv) OTHER STANDARDS FOR SMALL BUSINESS.—With 
respect to a merchant, retailer, or seller of nonfinancial 
goods or services that is a classified on a basis other 
than annual receipts for the purposes of section 3 
of the Small Business Act (15 U.S.C. 632) and the 
implementing 
rules 
thereunder, 
such 
merchant, 
retailer, or seller shall be deemed to meet the relevant 
industry size threshold described in clause (ii)(III) if 
such merchant, retailer, or seller meets the relevant 
industry size threshold to be a small business concern 
based on the number of employees, or other such 
applicable measure, established under that Act. 
(E) EXCEPTION
FROM
STATE
ENFORCEMENT.—To the 
extent that the Bureau may not exercise authority under 
this subsection with respect to a merchant, retailer, or 
seller of nonfinancial goods or services, no action by a 
State attorney general or State regulator with respect to 
a claim made under this title may be brought under sub-
section 1042(a), with respect to an activity described in 
any of clauses (i) through (iii) of subparagraph (A) by 
such merchant, retailer, or seller of nonfinancial goods 
or services. 
(b) EXCLUSION FOR REAL ESTATE BROKERAGE ACTIVITIES.— 
(1) REAL ESTATE BROKERAGE ACTIVITIES EXCLUDED.—With-
out limiting subsection (a), and except as permitted in para-
graph (2), the Bureau may not exercise any rulemaking, super-
visory, enforcement, or other authority under this title with 
respect to a person that is licensed or registered as a real 
estate broker or real estate agent, in accordance with State 
law, to the extent that such person— 
(A) acts as a real estate agent or broker for a buyer, 
seller, lessor, or lessee of real property; 
(B) brings together parties interested in the sale, pur-
chase, lease, rental, or exchange of real property; 
(C) negotiates, on behalf of any party, any portion 
of a contract relating to the sale, purchase, lease, rental, 
or exchange of real property (other than in connection 
with the provision of financing with respect to any such 
transaction); or 
(D) offers to engage in any activity, or act in any 
capacity, described in subparagraph (A), (B), or (C). 
(2) DESCRIPTION OF ACTIVITIES.—The Bureau may exercise 
rulemaking, supervisory, enforcement, or other authority under 
this title with respect to a person described in paragraph (1) 
when such person is— 
(A) engaged in an activity of offering or providing 
any consumer financial product or service, except that the 
Bureau may exercise such authority only with respect to 
that activity; or 
(B) otherwise subject to any enumerated consumer law 
or any law for which authorities are transferred under 
subtitle F or H, but the Bureau may exercise such authority 
only with respect to that law. 
(c) EXCLUSION FOR MANUFACTURED HOME RETAILERS AND MOD-
ULAR HOME RETAILERS.—
H. R. 4173—623 
(1) IN GENERAL.—The Director may not exercise any rule-
making, supervisory, enforcement, or other authority over a 
person to the extent that— 
(A) such person is not described in paragraph (2); 
and 
(B) such person— 
(i) acts as an agent or broker for a buyer or seller 
of a manufactured home or a modular home; 
(ii) facilitates the purchase by a consumer of a 
manufactured home or modular home, by negotiating 
the purchase price or terms of the sales contract (other 
than providing financing with respect to such trans-
action); or 
(iii) offers to engage in any activity described in 
clause (i) or (ii). 
(2) DESCRIPTION OF ACTIVITIES.—A person is described in 
this paragraph to the extent that such person is engaged in 
the offering or provision of any consumer financial product 
or service or is otherwise subject to any enumerated consumer 
law or any law for which authorities are transferred under 
subtitle F or H. 
(3) DEFINITIONS.—For purposes of this subsection, the fol-
lowing definitions shall apply: 
(A) MANUFACTURED HOME.—The term ‘‘manufactured 
home’’ has the same meaning as in section 603 of the 
National Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5402). 
(B) MODULAR HOME.—The term ‘‘modular home’’ means 
a house built in a factory in 2 or more modules that 
meet the State or local building codes where the house 
will be located, and where such modules are transported 
to the building site, installed on foundations, and com-
pleted. 
(d) EXCLUSION FOR ACCOUNTANTS AND TAX PREPARERS.— 
(1) IN GENERAL.—Except as permitted in paragraph (2), 
the Bureau may not exercise any rulemaking, supervisory, 
enforcement, or other authority over— 
(A) any person that is a certified public accountant, 
permitted to practice as a certified public accounting firm, 
or certified or licensed for such purpose by a State, or 
any individual who is employed by or holds an ownership 
interest with respect to a person described in this subpara-
graph, when such person is performing or offering to per-
form— 
(i) customary and usual accounting activities, 
including the provision of accounting, tax, advisory, 
or other services that are subject to the regulatory 
authority of a State board of accountancy or a Federal 
authority; or 
(ii) other services that are incidental to such cus-
tomary and usual accounting activities, to the extent 
that such incidental services are not offered or pro-
vided— 
(I) by the person separate and apart from such 
customary and usual accounting activities; or 
(II) to consumers who are not receiving such 
customary and usual accounting activities; or
H. R. 4173—624 
(B) any person, other than a person described in 
subparagraph (A) that performs income tax preparation 
activities for consumers. 
(2) DESCRIPTION OF ACTIVITIES.— 
(A) IN
GENERAL.—Paragraph (1) shall not apply to 
any person described in paragraph (1)(A) or (1)(B) to the 
extent that such person is engaged in any activity which 
is not a customary and usual accounting activity described 
in paragraph (1)(A) or incidental thereto but which is the 
offering or provision of any consumer financial product 
or service, except to the extent that a person described 
in paragraph (1)(A) is engaged in an activity which is 
a customary and usual accounting activity described in 
paragraph (1)(A), or incidental thereto. 
(B) NOT
A
CUSTOMARY
AND
USUAL
ACCOUNTING 
ACTIVITY.—For purposes of this subsection, extending or 
brokering credit is not a customary and usual accounting 
activity, or incidental thereto. 
(C) RULE OF CONSTRUCTION.—For purposes of subpara-
graphs (A) and (B), a person described in paragraph (1)(A) 
shall not be deemed to be extending credit, if such person 
is only extending credit directly to a consumer, exclusively 
for the purpose of enabling such consumer to purchase 
services described in clause (i) or (ii) of paragraph (1)(A) 
directly from such person, and such credit is— 
(i) not subject to a finance charge; and 
(ii) not payable by written agreement in more than 
4 installments. 
(D) OTHER LIMITATIONS.—Paragraph (1) does not apply 
to any person described in paragraph (1)(A) or (1)(B) that 
is otherwise subject to any enumerated consumer law or 
any law for which authorities are transferred under subtitle 
F or H. 
(e) EXCLUSION FOR PRACTICE OF LAW.— 
(1) IN GENERAL.—Except as provided under paragraph (2), 
the Bureau may not exercise any supervisory or enforcement 
authority with respect to an activity engaged in by an attorney 
as part of the practice of law under the laws of a State in 
which the attorney is licensed to practice law. 
(2) RULE OF CONSTRUCTION.—Paragraph (1) shall not be 
construed so as to limit the exercise by the Bureau of any 
supervisory, enforcement, or other authority regarding the 
offering or provision of a consumer financial product or service 
described in any subparagraph of section 1002(5)— 
(A) that is not offered or provided as part of, or inci-
dental to, the practice of law, occurring exclusively within 
the scope of the attorney-client relationship; or 
(B) that is otherwise offered or provided by the attorney 
in question with respect to any consumer who is not 
receiving legal advice or services from the attorney in 
connection with such financial product or service. 
(3) EXISTING AUTHORITY.—Paragraph (1) shall not be con-
strued so as to limit the authority of the Bureau with respect 
to any attorney, to the extent that such attorney is otherwise 
subject to any of the enumerated consumer laws or the authori-
ties transferred under subtitle F or H.
H. R. 4173—625 
(f) EXCLUSION FOR PERSONS REGULATED BY A STATE INSURANCE 
REGULATOR.— 
(1) IN GENERAL.—No provision of this title shall be con-
strued as altering, amending, or affecting the authority of any 
State insurance regulator to adopt rules, initiate enforcement 
proceedings, or take any other action with respect to a person 
regulated by a State insurance regulator. Except as provided 
in paragraph (2), the Bureau shall have no authority to exercise 
any power to enforce this title with respect to a person regulated 
by a State insurance regulator. 
(2) DESCRIPTION OF ACTIVITIES.—Paragraph (1) does not 
apply to any person described in such paragraph to the extent 
that such person is engaged in the offering or provision of 
any consumer financial product or service or is otherwise sub-
ject to any enumerated consumer law or any law for which 
authorities are transferred under subtitle F or H. 
(3) STATE
INSURANCE
AUTHORITY
UNDER
GRAMM-LEACH- 
BLILEY.—Notwithstanding paragraph (2), the Bureau shall not 
exercise any authorities that are granted a State insurance 
authority under section 505(a)(6) of the Gramm-Leach-Bliley 
Act with respect to a person regulated by a State insurance 
authority. 
(g) EXCLUSION
FOR EMPLOYEE BENEFIT
AND COMPENSATION 
PLANS AND CERTAIN OTHER ARRANGEMENTS UNDER THE INTERNAL 
REVENUE CODE OF 1986.— 
(1) PRESERVATION
OF
AUTHORITY
OF
OTHER
AGENCIES.— 
No provision of this title shall be construed as altering, 
amending, or affecting the authority of the Secretary of the 
Treasury, the Secretary of Labor, or the Commissioner of 
Internal Revenue to adopt regulations, initiate enforcement 
proceedings, or take any actions with respect to any specified 
plan or arrangement. 
(2) ACTIVITIES NOT CONSTITUTING THE OFFERING OR PROVI-
SION OF ANY CONSUMER FINANCIAL PRODUCT OR SERVICE.—For 
purposes of this title, a person shall not be treated as having 
engaged in the offering or provision of any consumer financial 
product or service solely because such person is— 
(A) a specified plan or arrangement; 
(B) engaged in the activity of establishing or 
maintaining, for the benefit of employees of such person 
(or for members of an employee organization), any specified 
plan or arrangement; or 
(C) engaged in the activity of establishing or 
maintaining a qualified tuition program under section 
529(b)(1) of the Internal Revenue Code of 1986 offered 
by a State or other prepaid tuition program offered by 
a State. 
(3) LIMITATION ON BUREAU AUTHORITY.— 
(A) IN GENERAL.—Except as provided under subpara-
graphs (B) and (C), the Bureau may not exercise any rule-
making or enforcement authority with respect to products 
or services that relate to any specified plan or arrangement. 
(B) BUREAU ACTION PURSUANT TO AGENCY REQUEST.— 
(i) AGENCY REQUEST.—The Secretary and the Sec-
retary of Labor may jointly issue a written request 
to the Bureau regarding implementation of appropriate 
consumer protection standards under this title with
H. R. 4173—626 
respect to the provision of services relating to any 
specified plan or arrangement. 
(ii) AGENCY RESPONSE.—In response to a request 
by the Bureau, the Secretary and the Secretary of 
Labor shall jointly issue a written response, not later 
than 90 days after receipt of such request, to grant 
or deny the request of the Bureau regarding 
implementation of appropriate consumer protection 
standards under this title with respect to the provision 
of services relating to any specified plan or arrange-
ment. 
(iii) SCOPE
OF
BUREAU
ACTION.—Subject to a 
request or response pursuant to clause (i) or clause 
(ii) by the agencies made under this subparagraph, 
the Bureau may exercise rulemaking authority, and 
may act to enforce a rule prescribed pursuant to such 
request or response, in accordance with the provisions 
of this title. A request or response made by the Sec-
retary and the Secretary of Labor under this subpara-
graph shall describe the basis for, and scope of, appro-
priate consumer protection standards to be imple-
mented under this title with respect to the provision 
of services relating to any specified plan or arrange-
ment. 
(C) DESCRIPTION OF PRODUCTS OR SERVICES.—To the 
extent that a person engaged in providing products or 
services relating to any specified plan or arrangement is 
subject to any enumerated consumer law or any law for 
which authorities are transferred under subtitle F or H, 
subparagraph (A) shall not apply with respect to that law. 
(4) SPECIFIED
PLAN
OR
ARRANGEMENT.—For purposes of 
this subsection, the term ‘‘specified plan or arrangement’’ means 
any plan, account, or arrangement described in section 220, 
223, 401(a), 403(a), 403(b), 408, 408A, 529, or 530 of the Internal 
Revenue Code of 1986, or any employee benefit or compensation 
plan or arrangement, including a plan that is subject to title 
I of the Employee Retirement Income Security Act of 1974, 
or any prepaid tuition program offered by a State. 
(h) PERSONS REGULATED BY A STATE SECURITIES COMMISSION.— 
(1) IN GENERAL.—No provision of this title shall be con-
strued as altering, amending, or affecting the authority of any 
securities commission (or any agency or office performing like 
functions) of any State to adopt rules, initiate enforcement 
proceedings, or take any other action with respect to a person 
regulated by any securities commission (or any agency or office 
performing like functions) of any State. Except as permitted 
in paragraph (2) and subsection (f), the Bureau shall have 
no authority to exercise any power to enforce this title with 
respect to a person regulated by any securities commission 
(or any agency or office performing like functions) of any State, 
but only to the extent that the person acts in such regulated 
capacity. 
(2) DESCRIPTION OF ACTIVITIES.—Paragraph (1) shall not 
apply to any person to the extent such person is engaged 
in the offering or provision of any consumer financial product 
or service, or is otherwise subject to any enumerated consumer
H. R. 4173—627 
law or any law for which authorities are transferred under 
subtitle F or H. 
(i) EXCLUSION FOR PERSONS REGULATED BY THE COMMISSION.— 
(1) IN GENERAL.—No provision of this title may be con-
strued as altering, amending, or affecting the authority of the 
Commission to adopt rules, initiate enforcement proceedings, 
or take any other action with respect to a person regulated 
by the Commission. The Bureau shall have no authority to 
exercise any power to enforce this title with respect to a person 
regulated by the Commission. 
(2) CONSULTATION
AND
COORDINATION.—Notwithstanding 
paragraph (1), the Commission shall consult and coordinate, 
where feasible, with the Bureau with respect to any rule 
(including any advance notice of proposed rulemaking) 
regarding an investment product or service that is the same 
type of product as, or that competes directly with, a consumer 
financial product or service that is subject to the jurisdiction 
of the Bureau under this title or under any other law. In 
carrying out this paragraph, the agencies shall negotiate an 
agreement to establish procedures for such coordination, 
including procedures for providing advance notice to the Bureau 
when the Commission is initiating a rulemaking. 
(j) EXCLUSION FOR PERSONS REGULATED BY THE COMMODITY 
FUTURES TRADING COMMISSION.— 
(1) IN GENERAL.—No provision of this title shall be con-
strued as altering, amending, or affecting the authority of the 
Commodity Futures Trading Commission to adopt rules, initiate 
enforcement proceedings, or take any other action with respect 
to a person regulated by the Commodity Futures Trading 
Commission. The Bureau shall have no authority to exercise 
any power to enforce this title with respect to a person regulated 
by the Commodity Futures Trading Commission. 
(2) CONSULTATION
AND
COORDINATION.—Notwithstanding 
paragraph (1), the Commodity Futures Trading Commission 
shall consult and coordinate with the Bureau with respect 
to any rule (including any advance notice of proposed rule-
making) regarding a product or service that is the same type 
of product as, or that competes directly with, a consumer finan-
cial product or service that is subject to the jurisdiction of 
the Bureau under this title or under any other law. 
(k) EXCLUSION FOR PERSONS REGULATED BY THE FARM CREDIT 
ADMINISTRATION.— 
(1) IN GENERAL.—No provision of this title shall be con-
strued as altering, amending, or affecting the authority of the 
Farm Credit Administration to adopt rules, initiate enforcement 
proceedings, or take any other action with respect to a person 
regulated by the Farm Credit Administration. The Bureau shall 
have no authority to exercise any power to enforce this title 
with respect to a person regulated by the Farm Credit Adminis-
tration. 
(2) DEFINITION.—For purposes of this subsection, the term 
‘‘person regulated by the Farm Credit Administration’’ means 
any Farm Credit System institution that is chartered and sub-
ject to the provisions of the Farm Credit Act of 1971 (12 
U.S.C. 2001 et seq.). 
(l) EXCLUSION FOR ACTIVITIES RELATING TO CHARITABLE CON-
TRIBUTIONS.—
H. R. 4173—628 
(1) IN GENERAL.—The Director and the Bureau may not 
exercise any rulemaking, supervisory, enforcement, or other 
authority, including authority to order penalties, over any 
activities related to the solicitation or making of voluntary 
contributions to a tax-exempt organization as recognized by 
the Internal Revenue Service, by any agent, volunteer, or rep-
resentative of such organizations to the extent the organization, 
agent, volunteer, or representative thereof is soliciting or pro-
viding advice, information, education, or instruction to any 
donor or potential donor relating to a contribution to the 
organization. 
(2) LIMITATION.—The exclusion in paragraph (1) does not 
apply to other activities not described in paragraph (1) that 
are the offering or provision of any consumer financial product 
or service, or are otherwise subject to any enumerated consumer 
law or any law for which authorities are transferred under 
subtitle F or H. 
(m) INSURANCE.—The Bureau may not define as a financial 
product or service, by regulation or otherwise, engaging in the 
business of insurance. 
(n) LIMITED AUTHORITY OF THE BUREAU.—Notwithstanding sub-
sections (a) through (h) and (l), a person subject to or described 
in one or more of such provisions— 
(1) may be a service provider; and 
(2) may be subject to requests from, or requirements 
imposed by, the Bureau regarding information in order to carry 
out the responsibilities and functions of the Bureau and in 
accordance with section 1022, 1052, or 1053. 
(o) NO AUTHORITY TO IMPOSE USURY LIMIT.—No provision of 
this title shall be construed as conferring authority on the Bureau 
to establish a usury limit applicable to an extension of credit offered 
or made by a covered person to a consumer, unless explicitly author-
ized by law. 
(p) ATTORNEY GENERAL.—No provision of this title, including 
section 1024(c)(1), shall affect the authorities of the Attorney Gen-
eral under otherwise applicable provisions of law. 
(q) SECRETARY OF THE TREASURY.—No provision of this title 
shall affect the authorities of the Secretary, including with respect 
to prescribing rules, initiating enforcement proceedings, or taking 
other actions with respect to a person that performs income tax 
preparation activities for consumers. 
(r) DEPOSIT INSURANCE AND SHARE INSURANCE.—Nothing in 
this title shall affect the authority of the Corporation under the 
Federal Deposit Insurance Act or the National Credit Union 
Administration Board under the Federal Credit Union Act as to 
matters related to deposit insurance and share insurance, respec-
tively. 
(s) FAIR HOUSING ACT.—No provision of this title shall be 
construed as affecting any authority arising under the Fair Housing 
Act. 
SEC. 1028. AUTHORITY TO RESTRICT MANDATORY PRE-DISPUTE 
ARBITRATION. 
(a) STUDY AND REPORT.—The Bureau shall conduct a study 
of, and shall provide a report to Congress concerning, the use 
of agreements providing for arbitration of any future dispute