I 
108TH CONGRESS 
2D SESSION 
H. R. 3863 
To improve the access of investors to regulatory records with respect to 
securities brokers, dealers, and investment advisers. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 26, 2004 
Mr. SHADEGG introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To improve the access of investors to regulatory records 
with respect to securities brokers, dealers, and invest-
ment advisers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Realtime Investor Pro-
tection Act’’. 
SEC. 2. CONSTITUTIONAL AUTHORITY. 
The constitutional authority on which this Act rests 
is the power of Congress to regulate commerce as enumer-
ated in article I, section 8 of the United States Constitu-
tion.
SEC. 3. METHOD OF MAINTAINING BROKER/DEALER REG-
ISTRATION, 
DISCIPLINARY, 
AND 
OTHER 
DATA. 
Subsection (i) of section 15A of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o–3(i)) is amended to 
read as follows: 
‘‘(i) OBLIGATION TO MAINTAIN REGISTRATION, DIS-
CIPLINARY AND OTHER DATA.— 
‘‘(1) MAINTENANCE OF SYSTEM TO RESPOND 
TO INQUIRIES.—A registered securities association 
shall— 
‘‘(A) establish and maintain a system for 
collecting and retaining registration informa-
tion; 
‘‘(B) establish and maintain a toll-free 
telephone listing, and a readily accessible elec-
tronic or other process, to receive and promptly 
respond to inquiries regarding— 
‘‘(i) registration information on its 
members and their associated persons; and 
‘‘(ii) registration information on the 
members and their associated persons of 
any registered national securities exchange 
that uses the system described in subpara-
graph (A) for the registration of its mem-
bers and their associated persons; and
‘‘(C) adopt rules governing the process for 
making inquiries and the type, scope, and pres-
entation of information to be provided in re-
sponse to such inquiries in consultation with 
any registered national securities exchange pro-
viding information pursuant to subparagraph 
(B)(ii). 
‘‘(2) RECOVERY OF COSTS.—Such an associa-
tion may charge persons making inquiries, other 
than individual investors, reasonable fees for re-
sponses to such inquiries. 
‘‘(3) PROCESS FOR DISPUTED INFORMATION.— 
Such an association shall adopt rules establishing an 
administrative process for disputing the accuracy of 
information provided in response to inquiries under 
this subsection in consultation with any registered 
national securities exchange providing information 
pursuant to paragraph (1)(B)(ii). 
‘‘(4) LIMITATION OF LIABILITY.—Such an asso-
ciation, or exchange reporting information to such 
an association, shall not have any liability to any 
person for any actions taken or omitted in good 
faith under this subsection. 
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘registration information’ means
the information reported in connection with the reg-
istration or licensing of brokers and dealers and 
their associated persons, including disciplinary ac-
tions, regulatory, judicial, and arbitration pro-
ceedings, and other information required by law, or 
exchange or association rule, and the source and sta-
tus of such information.’’. 
SEC. 4. FILING DEPOSITORIES FOR INVESTMENT ADVIS-
ERS. 
(a) AMENDMENT.—Section 204 of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b–4) is amended— 
(1) by striking ‘‘Every investment’’ and insert-
ing the following: 
‘‘(a) IN GENERAL.—Every investment’’; and 
(2) by adding at the end the following: 
‘‘(b) FILING DEPOSITORIES.—The Commission may, 
by rule, require an investment adviser— 
‘‘(1) to file with the Commission any fee, appli-
cation, report, or notice required to be filed by this 
title or the rules issued under this title through any 
entity designated by the Commission for that pur-
pose; and 
‘‘(2) to pay the reasonable costs associated with 
such filing and the establishment and maintenance 
of the systems required by subsection (c).
‘‘(c) ACCESS TO DISCIPLINARY AND OTHER INFOR-
MATION.— 
‘‘(1) MAINTENANCE OF SYSTEM TO RESPOND 
TO INQUIRIES.—The Commission shall require the 
entity designated by the Commission under sub-
section (b)(1) to establish and maintain a toll-free 
telephone listing, and a readily accessible electronic 
or other process, to receive and promptly respond to 
inquiries regarding registration information (includ-
ing disciplinary actions, regulatory, judicial, and ar-
bitration proceedings, and other information re-
quired by law or rule to be reported) involving in-
vestment advisers and persons associated with in-
vestment advisers. 
‘‘(2) RECOVERY
OF
COSTS.—An entity des-
ignated by the Commission under subsection (b)(1) 
may charge persons making inquiries, other than in-
dividual investors, reasonable fees for responses to 
inquiries made under paragraph (1). 
‘‘(3) LIMITATION
ON
LIABILITY.—An entity 
designated by the Commission under subsection 
(b)(1) shall not have any liability to any person for 
any actions taken or omitted in good faith under 
this subsection.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 203A of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–3a) is amended— 
(A) by striking subsection (d); and 
(B) by redesignating subsection (e) as sub-
section (d). 
(2) Section 306 of the National Securities Mar-
kets Improvement Act of 1996 (15 U.S.C. 80b–10, 
note; Public Law 104–290; 110 Stat. 3439) is re-
pealed. 
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