I 
112TH CONGRESS 
2D SESSION 
H. R. 6204 
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 
JULY 25, 2012 
Ms. WATERS (for herself, Mr. FRANK of Massachusetts, and Mr. CAPUANO) 
introduced the following bill; which was referred to the Committee on Fi-
nancial 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 2012’’. 
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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 2011. 
‘‘(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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