I 
113TH CONGRESS 
1ST SESSION H. R. 1627 
To amend the Investment Advisers Act of 1940 to require certain investment 
advisers to pay fees to help cover the costs of inspecting and examining 
investment advisers under such Act. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 18, 2013 
Ms. WATERS (for herself and Mr. DELANEY) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To amend the Investment Advisers Act of 1940 to require 
certain investment advisers to pay fees to help cover 
the costs of inspecting and examining investment advis-
ers under such Act. 
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 ‘‘Investment Adviser 
Examination Improvement Act of 2013’’. 
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SEC. 2. SENSE OF CONGRESS. 
It is the sense of the Congress that the Securities 
and Exchange Commission should increase the number 
and frequency of examinations of investment advisers. 
SEC. 3. INSPECTION AND EXAMINATION FEES. 
Section 204 of the Investment Advisers Act of 1940 
(15 U.S.C. 80b–4) is amended by adding at the end the 
following new subsection 
‘‘(e) INSPECTION AND EXAMINATION FEES.— 
‘‘(1) IN GENERAL.—The Commission shall col-
lect an annual fee from investment advisers that are 
subject to inspection or examination by the Commis-
sion under this title to defray the cost of such in-
spections and examinations. 
‘‘(2) EXEMPTIONS FOR CERTAIN STATE-REGU-
LATED
INVESTMENT
ADVISERS.—No fees shall be 
collected under this subsection from any investment 
adviser that is prohibited from registering with the 
Commission under section 203 by reason of section 
203A. 
‘‘(3) FEE AMOUNTS.— 
‘‘(A) AMOUNT TO BE COLLECTED.— 
‘‘(i) IN GENERAL.—The Commission 
shall seek to ensure that the aggregate 
amount of fees collected under this sub-
section with respect to a specific fiscal year 
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are equal to the estimated cost of the Com-
mission in carrying out additional inspec-
tions and examinations for such fiscal 
year. 
‘‘(ii) ADDITIONAL
INSPECTIONS
AND 
EXAMINATIONS
DEFINED.—For purposes 
of this subparagraph and with respect to a 
fiscal year, the term ‘additional inspections 
and examinations’ means those inspections 
and examinations of investment advisers 
under this title for such fiscal year that ex-
ceed the number of inspections and exami-
nations of investment advisers under this 
title conducted during fiscal year 2012. 
‘‘(B) FEE CALCULATION FORMULA.—The 
Commission shall establish by rulemaking a for-
mula for determining the fee amount to be as-
sessed against individual investment advisers, 
which shall take into account the following fac-
tors: 
‘‘(i) The anticipated costs of con-
ducting inspections and examinations of in-
vestment advisers under this title, includ-
ing the anticipated frequency of such in-
spections and examinations. 
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‘‘(ii) The investment adviser’s size, in-
cluding the assets under management of 
the investment adviser. 
‘‘(iii) The number and type of clients 
of the investment adviser, and the extent 
to which the adviser’s clients pay other 
fees established by the Commission, includ-
ing registration and transaction fees. 
‘‘(iv) Such other objective factors, 
such as risk characteristics, as the Com-
mission determines to be appropriate. 
‘‘(C) ADJUSTMENT
OF
FORMULA.—Prior 
to the end of each fiscal year, the Commission 
shall review the fee calculation formula and, if, 
after allowing for a period of public comment, 
the Commission determines that the formula 
needs to be revised, the Commission shall revise 
such formula before fees are assessed for the 
following fiscal year. 
‘‘(4) PUBLIC DISCLOSURES.—The Commission 
shall make the following information publicly avail-
able, including on the Web site of the Commission: 
‘‘(A) The formula used to determine the 
fee amount to be assessed against individual in-
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vestment advisers, and any adjustment made to 
such formula. 
‘‘(B) The factors used to determine such 
formula, including any additional objective fac-
tors used by the Commission pursuant to para-
graph (3)(B)(iv). 
‘‘(5) AUDIT.— 
‘‘(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall, every 2 years, 
conduct an audit of the use of the fees collected 
by the Commission under this subsection, the 
reviews of the formula used to calculate such 
fees, and any adjustments made by the Com-
mission to such formula. 
‘‘(B) REPORT.—After conducting each 
audit required under subparagraph (A), the 
Comptroller General shall issue a report on 
such audit to the Committee on Financial Serv-
ices of the House of Representatives and the 
Committee on Banking, Housing, and Urban 
Affairs of the Senate. 
‘‘(6) TREATMENT OF FEES.— 
‘‘(A) IN GENERAL.—Funds derived from 
fees assessed under this subsection shall be 
available to the Commission, without further 
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appropriation or fiscal year limitation, to pay 
any costs associated with inspecting and exam-
ining investment advisers that are subject to in-
spection and examination under this title. 
‘‘(B) FUNDS NOT PUBLIC FUNDS.—Funds 
derived from fees assessed under this subsection 
shall not be construed to be Government or 
public funds or appropriated money. Notwith-
standing any other provision of law, funds de-
rived from fees assessed under this subsection 
shall not be subject to apportionment for the 
purpose of chapter 15 of title 31, United States 
Code, or under any other authority. 
‘‘(C) FUNDS
SUPPLEMENTAL
TO
OTHER 
AMOUNTS.—Funds derived from fees assessed 
under this subsection shall supplement, and be 
in addition to, any other amounts available to 
the Commission, under a regular appropriation 
or otherwise, for the purpose described in sub-
paragraph (A).’’. 
Æ 
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