ing given the term in section 1a(28) of the Com-
modity Exchange Act. 
(5) SIPA.—The term ‘‘SIPA’’ means the Secu-
rity Investors Protection Act of 1970. 
(6) SIPC.—The term ‘‘SIPC’’ means the Secu-
rity Investors Protection Corporation. 
(7) SIPC FUND.—The term ‘‘SIPC fund’’ 
means the fund established under section 4(a)(1) of 
the SIPA. 
SEC. 3. SUITABILITY RULES. 
(a) IN GENERAL.—The Commodity Exchange Act (7 
U.S.C. 1 et seq.) is amended by inserting after section 
4t the following: 
‘‘SEC. 4u. SUITABILITY RULES. 
‘‘(a) IN GENERAL.— 
‘‘(1) RECOMMENDATIONS MUST BE SUITABLE 
FOR THE CUSTOMER.—A futures commission mer-
chant shall not recommend a transaction or invest-
ment strategy involving a contract of sale of a com-
modity for future delivery, unless the futures com-
mission merchant has a reasonable basis to believe 
that the transaction or investment strategy is suit-
able for the customer, based on the information ob-
tained through the reasonable diligence of the fu-
tures commission merchant to ascertain the cus-
VerDate Mar 15 2010 
21:22 Aug 09, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3009.IH
H3009
emcdonald on DSK67QTVN1PROD with BILLS
tomer’s investment profile. A customer’s investment 
profile includes, but is not limited to, the customer’s 
age, other investments, financial situation and 
needs, tax status, investment objectives, investment 
experience, investment time horizon, liquidity needs, 
risk tolerance, and any other information the cus-
tomer may disclose to the futures commission mer-
chant in connection with the recommendation. 
‘‘(2) SAFE HARBOR IN CERTAIN CASES.—A fu-
tures commission merchant is deemed to comply 
with paragraph (1) in the case of a customer with 
an institutional account, if— 
‘‘(A) the futures commission merchant has 
a reasonable basis to believe that the customer 
is capable of evaluating investment risks inde-
pendently, both in general and with regard to 
particular transactions and investment strate-
gies involving a contract of sale of a commodity 
for future delivery; and 
‘‘(B) the customer affirmatively indicates 
that it is exercising independent judgment in 
evaluating the recommendations of the futures 
commission merchant. 
‘‘(b) APPLICABILITY WITH RESPECT TO CERTAIN 
AGENTS.—If a customer with an institutional account has 
VerDate Mar 15 2010 
21:22 Aug 09, 2013
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3009.IH
H3009
emcdonald on DSK67QTVN1PROD with BILLS
delegated decisionmaking authority to an agent, sub-
section (a) shall be applied with respect to the agent. 
‘‘(c) INSTITUTIONAL ACCOUNT DEFINED.—In this 
section, the term ‘institutional account’ means the account 
of— 
‘‘(1) a bank, savings and loan association, in-
surance company or registered investment company; 
‘‘(2) an investment adviser registered with the 
Securities and Exchange Commission under section 
203 of the Investment Advisers Act or with a State 
securities commission (or any agency or office per-
forming like functions); or 
‘‘(3) any other person (whether a natural per-
son, corporation, partnership, trust or otherwise) 
with total assets of at least $50,000,000. 
‘‘(d) PENALTIES.—The Commission may impose 1 or 
more of the following sanctions on a person found by the 
Commission to have violated this section or to have ne-
glected or refused to comply with an order issued by the 
Commission under this section: 
‘‘(1) Censure. 
‘‘(2) A fine. 
‘‘(3) Expulsion of the person from, or revoca-
tion of the membership of the person in, a registered 
entity. 
VerDate Mar 15 2010 
21:22 Aug 09, 2013
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3009.IH
H3009
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(4) Suspension for a definite period or a pe-
riod contingent on the performance of a particular 
act, or revocation, of the registration of the person 
under this Act with the Commission as a futures 
commission merchant. 
‘‘(5) Suspension or bar of the person from asso-
ciation with any other futures commission merchant. 
‘‘(6) A temporary or permanent cease and de-
sist order against the person. 
‘‘(7) Any other fitting sanction.’’. 
(b) EFFECTIVE DATE.—Within 6 months after the 
date of the enactment of this Act, the Commodity Futures 
Trading Commission shall issue regulations for the imple-
mentation of the amendment made by subsection (a). 
SEC. 4. REVIEW OF PROOF OF CLAIMS RULES. 
(a) IN GENERAL.—The Commodity Futures Trading 
Commission shall review the guidelines for establishing ac-
count classes and determining the basis for pro rata 
shares under, and the sample claim form set forth in, part 
190 of title 17, Code of Federal Regulations, and consider 
the desirability of allowing use of a set date for valuation 
purposes rather than the date of actual liquidation of posi-
tions. 
(b) REPORT TO THE CONGRESS.—Within 1 year after 
the date of the enactment of this Act, the Commodity Fu-
VerDate Mar 15 2010 
21:22 Aug 09, 2013
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3009.IH
H3009
emcdonald on DSK67QTVN1PROD with BILLS
tures Trading Commission shall submit to the Congress 
a written report that contains the findings of the Commis-
sion with respect to the matters referred to in subsection 
(a), and includes such changes to the regulations in such 
part as the Commission deems appropriate. 
Æ 
VerDate Mar 15 2010 
21:22 Aug 09, 2013
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6301
E:\BILLS\H3009.IH
H3009
emcdonald on DSK67QTVN1PROD with BILLS