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† HR 4173 EAS 
(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 sub-
section’’ and inserting ‘‘any provision of this para-
graph’’; 
(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 na-
tional securities exchange’’; and 
(B) in paragraph (6), by striking ‘‘com-
pany 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 
(B) by striking ‘‘clause (A) or (B) of that 
section’’ and inserting ‘‘paragraph (1) or (2) of 
section 205(b)’’.
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(e) INVESTMENT ADVISERS ACT OF 1940.—The Invest-
ment 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 business 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 strik-
ing ‘‘principal place of business’’ each place that term 
appears and inserting ‘‘principal office and place of 
business’’.
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† HR 4173 EAS 
SEC. 986. CONFORMING AMENDMENTS RELATING TO RE-
PEAL OF THE PUBLIC UTILITY HOLDING COM-
PANY ACT OF 1935. 
(a) SECURITIES EXCHANGE ACT OF 1934.—The Secu-
rities Exchange Act of 1934 (15 U.S.C. 78 et seq.) is amend-
ed— 
(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 paragraph (7) to read as follows:
‘‘(7) DEFINITION.—For purposes of this sub-
section, the term ‘emergency’ means— 
‘‘(A) a major market disturbance character-
ized by or constituting— 
‘‘(i) sudden and excessive fluctuations 
of securities prices generally, or a substan-
tial 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 substantial 
threat thereof; or 
‘‘(B) a major disturbance that substantially 
disrupts, or threatens to substantially disrupt—
1156 
† HR 4173 EAS 
‘‘(i) the functioning of securities mar-
kets, investment companies, or any other 
significant portion or segment of the securi-
ties 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 In-
denture 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 ‘Se-
curities Exchange Act of 1934’ shall be deemed to 
refer, respectively, 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);
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† HR 4173 EAS 
(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 Ex-
change 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 Invest-
ment Company 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 paragraph (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
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† HR 4173 EAS 
(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 Util-
ity Holding Company Act of 1935’,’’. 
SEC. 987. AMENDMENT TO DEFINITION OF MATERIAL LOSS 
AND NONMATERIAL LOSSES TO THE DEPOSIT 
INSURANCE FUND FOR PURPOSES OF IN-
SPECTOR GENERAL REVIEWS. 
(a) IN GENERAL.—Section 38(k) of the Federal De-
posit Insurance 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 ex-
cess of— 
‘‘(i) $100,000,000, if the loss occurs 
during the period beginning on September 
30, 2009, and ending on December 31, 
2010; 
‘‘(ii) $75,000,000, if the loss occurs 
during the period beginning on January 1, 
2011, and ending on December 31, 2011; 
and
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† HR 4173 EAS 
‘‘(iii) $50,000,000, if the loss occurs on 
or after January 1, 2012.’’; 
(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 para-
graph (6); and 
(5) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) LOSSES THAT ARE NOT MATERIAL.— 
‘‘(A) SEMIANNUAL
REPORT.—For the 6- 
month period ending on March 31, 2010, and 
each 6-month period thereafter, the Inspector 
General of each Federal banking agency shall— 
‘‘(i) identify losses that the Inspector 
General estimates have been incurred by the 
Deposit Insurance Fund during that 6- 
month period, with respect to the insured 
depository institutions supervised by the 
Federal banking agency; 
‘‘(ii) for each loss incurred by the De-
posit Insurance Fund that is not a material 
loss, determine—
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† HR 4173 EAS 
‘‘(I) the grounds identified by the 
Federal banking agency or State bank 
supervisor for appointing the Corpora-
tion as receiver under section 11(c)(5); 
and 
‘‘(II) whether any unusual cir-
cumstances exist that might warrant 
an in-depth review of the loss; and 
‘‘(iii) prepare and submit a written re-
port to the appropriate Federal banking 
agency and to Congress on the results of 
any determination by the Inspector Gen-
eral, including— 
‘‘(I) an identification of any loss 
that warrants an in-depth review, to-
gether with the reasons why such re-
view is warranted, or, if the Inspector 
General determines that no review is 
warranted, an explanation of such de-
termination; 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
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† HR 4173 EAS 
reports under paragraph (1)(A), will 
be completed and submitted to the Fed-
eral banking agency and Congress. 
‘‘(B) DEADLINE
FOR
SEMIANNUAL
RE-
PORT.—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 re-
quired under paragraph (A) to any Member 
of Congress, upon request.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—The 
heading for subsection (k) of section 38 of the Federal De-
posit Insurance Act (U.S.C. 1831o(k)) is amended to read 
as follows: 
‘‘(k) REVIEWS REQUIRED WHEN DEPOSIT INSURANCE 
FUND INCURS LOSSES.—’’.
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† HR 4173 EAS 
SEC. 988. AMENDMENT TO DEFINITION OF MATERIAL LOSS 
AND NONMATERIAL LOSSES TO THE NA-
TIONAL CREDIT UNION SHARE INSURANCE 
FUND FOR PURPOSES OF INSPECTOR GEN-
ERAL REVIEWS. 
(a) IN GENERAL.—Section 216(j) of the Federal Credit 
Union Act (12 U.S.C. 1790d(j)) is amended to read as fol-
lows: 
‘‘(j) REVIEWS REQUIRED WHEN SHARE INSURANCE 
FUND EXPERIENCES LOSSES.— 
‘‘(1) IN GENERAL.—If the Fund incurs a mate-
rial 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 implementa-
tion 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 sub-
paragraph (A) to—
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† HR 4173 EAS 
‘‘(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 mate-
rial 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 sec-
tion 208 or was appointed liquidating agent. 
‘‘(3) PUBLIC DISCLOSURE REQUIRED.— 
‘‘(A) IN GENERAL.—The Board shall dis-
close 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
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† HR 4173 EAS 
‘‘(ii) any information about the in-
sured credit union (other than trade secrets) 
under section 552(b)(8) of title 5, United 
States Code. 
‘‘(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) may not be construed as requiring the 
agency to disclose the name of any customer of 
the insured credit union (other than an institu-
tion-affiliated party), or information from which 
the identity of such customer could reasonably be 
ascertained. 
‘‘(4) LOSSES THAT ARE NOT MATERIAL.— 
‘‘(A) SEMIANNUAL
REPORT.—For the 6- 
month period ending on March 31, 2010, and 
each 6-month period thereafter, the Inspector 
General of the Board shall— 
‘‘(i) identify any losses that the Inspec-
tor General estimates were incurred by the 
Fund during such 6-month period, with re-
spect 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 ju-
risdiction over a State credit union for
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† HR 4173 EAS 
appointing the Board as the liqui-
dating agent for any Federal or State 
credit union; and 
‘‘(II) whether any unusual cir-
cumstances exist that might warrant 
an in-depth review of the loss; and 
‘‘(iii) prepare and submit a written re-
port to the Board and to Congress on the re-
sults of the determinations 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 determines 
that no review is warranted, an expla-
nation 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 pre-
pared in a manner consistent with re-
ports under paragraph (1)(A), will be 
completed.
1166 
† HR 4173 EAS 
‘‘(B) DEADLINE
FOR
SEMIANNUAL
RE-
PORT.—The Inspector General of the Board 
shall— 
‘‘(i) submit each report required under 
subparagraph (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 re-
quired 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 para-
graph (1), including the extent to which the In-
spector 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 super-
vision of insured credit unions (including im-
provements relating to the implementation of 
this section).’’.
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† HR 4173 EAS 
SEC. 989. GOVERNMENT ACCOUNTABILITY OFFICE STUDY 
ON PROPRIETARY 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, a financial holding com-
pany, or a subsidiary of a bank holding com-
pany 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 covered entity investing as a principal in se-
curities, commodities, derivatives, hedge funds, pri-
vate 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 trad-
ing by and within covered entities, including an eval-
uation of— 
(A) whether proprietary trading presents a 
material systemic risk to the stability of the
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† HR 4173 EAS 
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 conflicts of interest between covered en-
tities 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 en-
tities that engage in proprietary trading, and if 
not, the costs and benefits of options for the im-
provement of such disclosure; and 
(E) whether the banking, securities, and 
commodities regulators of institutions that en-
gage in proprietary trading have in place ade-
1169 
† HR 4173 EAS 
quate systems and controls to monitor and con-
tain 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 relat-
ing to proprietary trading; 
(G) enhanced public disclosure relating to 
proprietary trading; and
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† HR 4173 EAS 
(H) any other options the Comptroller Gen-
eral deems appropriate. 
(c) REPORT TO CONGRESS.—Not later than 15 months 
after the date of enactment of this Act, the Comptroller Gen-
eral shall submit a report to Congress on the results of the 
study conducted under subsection (b). 
(d) ACCESS BY COMPTROLLER GENERAL.—For pur-
poses of conducting 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, electronic communications, or other 
papers, things, or property belonging to or in use by a cov-
ered entity that engages in proprietary trading, and to the 
officers, directors, employees, independent public account-
ants, financial advisors, staff, and agents and representa-
tives 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 re-
quest. The Comptroller General may make and retain copies 
of books, records, accounts, and other records, as the Comp-
troller General deems appropriate. 
(e) CONFIDENTIALITY OF REPORTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Comptroller General may not disclose 
information regarding—
1171 
† HR 4173 EAS 
(A) any proprietary trading activity of a 
covered entity, unless such information is dis-
closed at a level of generality that does not reveal 
the investment or trading position or strategy of 
the covered entity for any specific security, com-
modity, derivative, or other investment or finan-
cial product; or 
(B) any individual interviewed by the 
Comptroller General for purposes of the study 
under subsection (b), unless such information is 
disclosed at a level of generality that does not re-
veal— 
(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 be-
lieved to be engaged in proprietary trading, 
the name of or any identifying details relat-
ing 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;
1172 
† HR 4173 EAS 
(B) to a committee of Congress, upon re-
quest; 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 determines has adopted 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-Spe-
cific Certifications and Professional Designations 
(or any successor thereto); 
(B) the insurance commission (or any agen-
cy or office performing like functions) of any 
State that the Office determines has— 
(i) adopted rules 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 Association of Insurance Commis-
sioners Model Regulation on the Use of Sen-
ior-Specific Certifications and Professional
1173 
† HR 4173 EAS 
Designations in the Sale of Life Insurance 
and Annuities (or any successor thereto); 
and 
(ii) adopted rules with respect to fidu-
ciary or suitability requirements in the sale 
of annuities that meet or exceed the min-
imum requirements established by the Suit-
ability in Annuity Transactions Model Reg-
ulation of the National Association of In-
surance Commissioners (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 secu-
rity, an insurance product (including an insurance 
product that pays a return, whether fixed or vari-
able), a bank product, and a loan product;
1174 
† HR 4173 EAS 
(3) the term ‘‘misleading designation’’— 
(A) means a certification, professional des-
ignation, or other purported credential that indi-
cates or implies that a salesperson or adviser has 
special certification or training in advising or 
servicing seniors; and 
(B) does not include a certification, profes-
sional designation, license, or other credential 
that— 
(i) was issued by or obtained from an 
academic institution having regional ac-
creditation; 
(ii) meets the standards for certifi-
cations, licenses, and professional designa-
tions outlined by the NASAA Model Rule on 
the Use of Senior-Specific Certifications 
and Professional Designations in the Sale of 
Life Insurance and Annuities, adopted by 
the National Association of Insurance Com-
missioners (or any successor thereto); or 
(iii) was issued by or obtained from a 
State; 
(4) the term ‘‘misleading or fraudulent mar-
keting’’ means the use of a misleading designation by
1175 
† HR 4173 EAS 
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 Amer-
ican Securities Administrators Association; 
(6) the term ‘‘Office’’ means the Office of Finan-
cial Literacy of the Bureau; and 
(7) the term ‘‘senior’’ means any individual who 
has attained the age of 62 years or older. 
(b) GRANTS TO STATES FOR ENHANCED PROTECTION 
OF SENIORS FROM BEING MISLED BY FALSE DESIGNA-
TIONS.—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 regulators, prosecutors, and law enforcement offi-
cers, in order to identify salespersons and advisers 
who target seniors through the use of misleading des-
ignations; 
(3) to fund technology, equipment, and training 
for prosecutors to increase the successful prosecution 
of salespersons and advisers who target seniors with 
the use of misleading designations;
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† HR 4173 EAS 
(4) to provide educational materials and train-
ing to regulators on the appropriateness of the use of 
designations by salespersons and advisers in connec-
tion with the sale and marketing of financial prod-
ucts; 
(5) to provide educational materials and train-
ing to seniors to increase awareness and under-
standing of misleading or fraudulent marketing; 
(6) to develop comprehensive plans to combat 
misleading or fraudulent marketing of financial prod-
ucts to seniors; and 
(7) to enhance provisions of State law to provide 
protection for seniors against misleading or fraudu-
lent 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 misleading or fraudulent marketing that are 
proposed to be funded using a grant under this sec-
tion, including— 
(A) an identification of the scope of the 
problem of misleading or fraudulent marketing 
in the State;
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† HR 4173 EAS 
(B) a description of how the proposed ac-
tivities would— 
(i) protect seniors from misleading or 
fraudulent marketing in the sale of finan-
cial 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 ac-
tivities would be coordinated with other State ef-
forts; and 
(2) any other information, as the Office deter-
mines is appropriate. 
(d) PERFORMANCE OBJECTIVES AND REPORTING RE-
QUIREMENTS.—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 to carry out and assess the effec-
tiveness of the program under this section. 
(e) MAXIMUM AMOUNT.—The amount of a grant under 
this section may not exceed—
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(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 ad-
vice that meet or exceed the minimum require-
ments of the NASAA Model Rule on the Use of 
Senior-Specific Certifications and Professional 
Designations (or any successor thereto); 
(B) on the appropriate use of designations 
in the sale of insurance products that, to the ex-
tent practicable, conform to the minimum re-
quirements of the National Association of Insur-
ance Commissioners Model Regulation on the 
Use of Senior-Specific Certifications and Profes-
sional Designations 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
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(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 designa-
tions in the offer or sale of securities or invest-
ment 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); or 
(B) rules— 
(i) on the appropriate use of designa-
tions in the sale of insurance products that, 
to the extent practicable, conform to the 
minimum requirements of the National As-
sociation 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) with respect to fiduciary or suit-
ability requirements in the sale of annuities 
that meet or exceed the minimum require-
ments established by the Suitability in An-
nuity Transactions Model Regulation of the
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National Association of Insurance Commis-
sioners (or any successor thereto). 
(f) SUBGRANTS.—A State or eligible entity that re-
ceives 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) 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 Federal 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
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(C) by adding after subparagraph (B) the 
following: 
‘‘(C) with respect to the Federal Labor Re-
lations 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 Na-
tional Credit Union Administration Board (de-
scribed under section 102 of the Federal Credit 
Union Act (12 U.S.C. 1752a); 
‘‘(F) with respect to the National Endow-
ment of the Arts, such term means the National 
Council on the Arts; 
‘‘(G) with respect to the National Endow-
ment 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
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(2) in subsection (h), by inserting ‘‘if the des-
ignated Federal entity is not a board or commission, 
include’’ after ‘‘designated Federal entities and’’. 
SEC. 989C. STRENGTHENING INSPECTOR GENERAL AC-
COUNTABILITY. 
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 In-
spector 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 In-
spector General; 
‘‘(15) a list of any outstanding recommendations 
from any peer review conducted by another Office of 
Inspector General that have not been fully imple-
mented, including a statement describing the status of 
the implementation and why implementation is not 
complete; and
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‘‘(16) a list of any peer reviews conducted by the 
Inspector General of another Office of the Inspector 
General during the reporting period, including a list 
of any outstanding recommendations made from any 
previous peer review (including any peer review con-
ducted before the reporting period) that remain out-
standing or have not been fully implemented.’’. 
SEC. 989D. REMOVAL OF INSPECTORS GENERAL OF DES-
IGNATED FEDERAL 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 paragraph (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 REGU-
LATORY SYSTEM. 
(a) COUNCIL OF INSPECTORS GENERAL ON FINANCIAL 
OVERSIGHT.— 
(1) ESTABLISHMENT AND MEMBERSHIP.—There 
is established a Council of Inspectors General on Fi-
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nancial Oversight (in this section referred to as the 
‘‘Council of Inspectors General’’) chaired by the In-
spector 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 Com-
mission. 
(C) The Department of Housing and Urban 
Development. 
(D) The Department of the Treasury. 
(E) The Federal Deposit Insurance Cor-
poration. 
(F) The Federal Housing Finance Agency. 
(G) The National Credit Union Adminis-
tration. 
(H) The Securities and Exchange Commis-
sion. 
(I) The Troubled Asset Relief Program 
(until the termination 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.—
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(A) MEETINGS.—The Council of Inspectors 
General shall meet not less than once each quar-
ter, or more frequently if the chair considers it 
appropriate, to facilitate the sharing of informa-
tion 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 fi-
nancial oversight. 
(B) ANNUAL
REPORT.—Each year the 
Council of Inspectors 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 Gen-
eral, a section within the exclusive editorial 
control of such inspector general that high-
lights the concerns and recommendations of 
such inspector general in such inspector 
general’s ongoing and completed work, with 
a focus on issues that may apply to the 
broader financial sector; and 
(ii) a summary of the general observa-
tions of the Council of Inspectors General 
based on the views expressed by each inspec-
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tor 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 in-
spectors general who are members of the Council 
of Inspectors General may detail staff and re-
sources to a Council of Inspectors General Work-
ing 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 pur-
suant 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.
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Subtitle J—Self-funding of the Se-
curities and Exchange Commis-
sion 
SEC. 991. SECURITIES AND EXCHANGE COMMISSION SELF- 
FUNDING. 
(a) SELF-FUNDING AUTHORITY.—Section 4 of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78d) is amend-
ed— 
(1) in subsection (c), in the second sentence, by 
striking ‘‘credited to the appropriated funds of the 
Commission’’ and inserting ‘‘deposited in the account 
described in subsection (i)(4)’’; 
(2) in subsection (f), in the second sentence, by 
striking ‘‘considered a reimbursement to the appro-
priated funds of the Commission’’ and inserting ‘‘de-
posited in the account described in subsection (i)(4)’’; 
and 
(3) by adding at the end the following: 
‘‘(i) FUNDING OF THE COMMISSION.— 
‘‘(1) BUDGET.—For each fiscal year, the Chair-
man of the Commission shall prepare and submit to 
Congress a budget to Congress. Such budget shall be 
submitted at the same time the President submits a 
budget of the United States to Congress for such fiscal 
year. The budget submitted by the Chairman of the
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Commission pursuant to this paragraph shall not be 
considered a request for appropriations. 
‘‘(2) TREASURY PAYMENT.— 
‘‘(A) On the first day of each fiscal year, the 
Treasury shall pay into the account described in 
paragraph (4) an amount equal to the budget 
submitted by the Chairman of the Commission 
pursuant to paragraph (1) for such fiscal year. 
‘‘(B) At or prior to the end of each fiscal 
year, the Commission shall pay to the Treasury 
from fees and assessments deposited in the ac-
count described in paragraph (4) an amount 
equal to the amount paid by the Treasury pursu-
ant to subparagraph (A) for such fiscal year, un-
less there are not sufficient fees and assessments 
deposited in such account at or prior to the end 
of the fiscal year to make such payment, in 
which case the Commission shall make such pay-
ment in a subsequent fiscal year. 
‘‘(3) OBLIGATIONS AND EXPENSES.— 
‘‘(A) IN GENERAL.—The Commission shall 
determine and prescribe the manner in which— 
‘‘(i) the obligations of the Commission 
shall be incurred; and
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‘‘(ii) the disbursements and expenses of 
the Commission allowed and paid. 
‘‘(B) INSUFFICIENT
FUNDS.—If, in the 
course of any fiscal year, the Chairman of the 
Commission determines that, due to unforeseen 
circumstances, the obligations of the Commission 
will exceed those provided for in the budget sub-
mitted under paragraph (1), the Chairman of 
the Commission may notify Congress of the 
amount and expected uses of the additional obli-
gations. 
‘‘(C) AUTHORITY TO INCUR EXCESS OBLIGA-
TIONS.—The Commission may incur obligations 
in excess of the budget submitted under para-
graph (1) from amounts available in the account 
described in paragraph (4). 
‘‘(D) RULE OF CONSTRUCTION.—Any notifi-
cation to Congress under this paragraph shall 
not be considered a request for appropriations. 
‘‘(4) ACCOUNT.— 
‘‘(A) ESTABLISHMENT.—Fees and assess-
ments collected under this title, section 6(b) of 
the Securities Act of 1933 (15 U.S.C. 77f(b)), 
and section 24(f) of the Investment Company Act 
of 1940 (15 U.S.C. 80a–24(f)) and payments
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† HR 4173 EAS 
made by the Treasury pursuant to paragraph 
(2)(A) for any fiscal year shall be deposited into 
an account established at any regular Govern-
ment depositary or any State or national bank. 
‘‘(B) 
RULE
OF
CONSTRUCTION.—Any 
amounts deposited into the account established 
under subparagraph (A) shall not be construed 
to be Government funds or appropriated monies. 
‘‘(C) NO
APPORTIONMENT.—Any amounts 
deposited into the account established under sub-
paragraph (A) shall not be subject to apportion-
ment for the purpose of chapter 15 of title 31, 
United States Code, or under any other author-
ity. 
‘‘(5) USE OF ACCOUNT FUNDS.— 
‘‘(A) PERMISSIBLE USES.—Amounts avail-
able in the account described in paragraph (4) 
may be withdrawn by the Commission and used 
for the purposes described in paragraphs (2) and 
(3). 
‘‘(B) IMPERMISSIBLE USE.—Except as pro-
vided in paragraph (6), no amounts available in 
the account described in paragraph (4) shall be 
deposited and credited as general revenue of the 
Treasury.
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‘‘(6) EXCESS FUNDS.—If, at the end of any fiscal 
year and after all payments have been made to the 
Treasury pursuant to paragraph (2)(B) for such fis-
cal year and all prior fiscal years, the balance of the 
account described in paragraph (4) exceeds 25 percent 
of the budget of the Commission for the following fis-
cal year, the amount by which the balance exceeds 25 
percent of such budget shall be credited as general rev-
enue of the Treasury.’’. 
(b) CONFORMING AMENDMENTS TO TRANSACTION FEE 
PROVISIONS.—Section 31 of the Securities Exchange Act of 
1934 (15 U.S.C. 78ee) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RECOVERY OF COSTS AND EXPENSES.— 
‘‘(1) IN
GENERAL.—The Commission shall, in 
accordance with this section, collect transaction fees 
and assessments that are designed— 
‘‘(A) to recover the reasonable costs and ex-
penses of the Commission, as set forth in the an-
nual budget of the Commission; and 
‘‘(B) to provide funds necessary to main-
tain a reserve. 
‘‘(2) OVERPAYMENTS.—The authority to collect 
transaction fees and assessments in accordance with
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† HR 4173 EAS 
this section shall include the authority to offset from 
such collection any overpayment of transaction fees or 
assessments, regardless of the fiscal year in which 
such overpayment is made.’’; 
(2) in subsection (e)(2), by striking ‘‘September 
30’’ and inserting ‘‘September 25’’; 
(3) in subsection (g), by striking ‘‘April 30’’ and 
inserting ‘‘August 31’’; 
(4) by amending subsection (i) to read as fol-
lows: 
‘‘(i) FEE COLLECTIONS.—Fees and assessments col-
lected pursuant to this section shall be deposited and cred-
ited in accordance with section 4(g) of this title.’’; 
(5) by amending subsection (j) to read as follows: 
‘‘(j) ADJUSTMENTS TO TRANSACTION FEE RATES.— 
‘‘(1) ANNUAL
ADJUSTMENT.—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 ap-
plied to the baseline estimate of the aggregate dollar 
amount of sales for such fiscal year, is reasonably 
likely to produce aggregate fee collections under this 
section (including assessments collected under sub-
section (d)) that are equal to the budget of the Com-
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† HR 4173 EAS 
mission for such fiscal year, plus amounts necessary 
to maintain a reserve. 
‘‘(2) MID-YEAR
ADJUSTMENT.—For each fiscal 
year, the Commission shall determine, by March 1 of 
such fiscal year, whether, based on the actual aggre-
gate dollar volume of sales during the first 4 months 
of such fiscal year, the baseline estimate of the aggre-
gate dollar volume of sales used under paragraph (1) 
for such fiscal year is reasonably likely to be 10 per-
cent (or more) greater or less than the actual aggre-
gate dollar volume of sales for such fiscal year. If the 
Commission so determines, the Commission shall by 
order, not later than March 1, adjust each of the rates 
applicable under subsections (b) and (c) for such fis-
cal year to a uniform adjusted rate that, when ap-
plied 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 collec-
tions under this section (including fees estimated to 
be collected under subsections (b) and (c) during such 
fiscal year prior to the effective date of the new uni-
form adjusted rate and assessments collected under 
subsection (d)) that are equal to the budget of the 
Commission for such fiscal year, plus amounts nec-
essary to maintain a reserve. In making such revised
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estimate, the Commission shall, after consultation 
with the Congressional Budget Office and the Office 
of Management and Budget, use the same method-
ology required by paragraph (4). 
‘‘(3) REVIEW AND EFFECTIVE DATE.—In exer-
cising its authority under this subsection, the Com-
mission shall not be required to comply with the pro-
visions 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. An adjusted rate prescribed 
under paragraph (1) shall take effect on the first day 
of the fiscal year to which such rate applies. An ad-
justed rate prescribed under paragraph (2) shall take 
effect on April 1 of the fiscal year to which such rate 
applies. 
‘‘(4) BASELINE ESTIMATE OF THE AGGREGATE 
DOLLAR AMOUNT OF SALES.—For purposes of this 
subsection, the baseline estimate of the aggregate dol-
lar amount of sales for any fiscal year is the baseline 
estimate of the aggregate dollar amount of sales of se-
curities (other than bonds, debentures, other evidences 
of indebtedness, security futures products, and options 
on securities indexes excluding a narrow-based secu-
rity index) to be transacted on each national securi-
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† HR 4173 EAS 
ties exchange and by or through any member of each 
national securities association (otherwise than on a 
national securities exchange) during such fiscal year 
as determined by the Commission, after consultation 
with the Congressional Budget Office and the Office 
of Management and Budget, using the methodology 
required for making projections pursuant to section 
907 of title 2.’’; and 
(6) by striking subsections (k) and (l). 
(c) CONFORMING AMENDMENTS
TO REGISTRATION 
FEE PROVISIONS.— 
(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) in paragraph (3), in the paragraph 
heading, by striking ‘‘OFFSETTING’’ and insert-
ing ‘‘FEE’’; 
(C) in paragraph (11)(A), in the subpara-
graph heading, by striking ‘‘OFFSETTING’’ and 
inserting ‘‘FEE’’; 
(D) by striking paragraphs (1), (3), (4), 
(6), (8), and (9);
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(E) by redesignating paragraph (2) as 
paragraph (1); 
(F) in paragraph (1), as so redesignated, by 
striking ‘‘(5) or (6)’’ and inserting ‘‘(3)’’; 
(G) by inserting after paragraph (1), as so 
redesignated, the following: 
‘‘(2) FEE COLLECTIONS.—Fees collected pursuant 
to this subsection shall be deposited and credited in 
accordance with section 4(i) of the Securities Ex-
change Act of 1934.’’; 
(H) by redesignating paragraph (5) as 
paragraph (3); 
(I) in paragraph (3), as redesignated— 
(i) by striking ‘‘of the fiscal years 2003 
through 2011’’ and inserting ‘‘fiscal year’’; 
and 
(ii) by striking ‘‘paragraph (2)’’ and 
inserting ‘‘paragraph (1)’’; 
(J) by redesignating paragraph (7) as 
paragraph (4); 
(K) by inserting after paragraph (4), as so 
redesignated, the following: 
‘‘(5) REVIEW AND EFFECTIVE DATE.—In exer-
cising its authority under this subsection, the Com-
mission shall not be required to comply with the pro-
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† HR 4173 EAS 
visions of section 553 of title 5, United States Code. 
An adjusted rate prescribed under paragraph (3) and 
published under paragraph (6) shall not be subject to 
judicial review. An adjusted rate prescribed under 
paragraph (3) shall take effect on the first day of the 
fiscal year to which such rate applies.’’; 
(L) by redesignating paragraphs (10) and 
(11), as paragraphs (6) and (7); 
(M) in paragraph (6), as redesignated, by 
striking ‘‘April 30’’ and inserting ‘‘August 31’’; 
and 
(N) in paragraph (7), as 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 subparagraph (A) the following: 
2012 and each succeeding fiscal year 
An amount that is 
equal to the tar-
get fee collec-
tion amount for 
the prior fiscal 
year adjusted by 
the rate of infla-
tion. 
(2) SECTION
13(E)
OF
THE
SECURITIES
EX-
CHANGE ACT OF 1934.—Section 13(e) of the Securities
1198 
† HR 4173 EAS 
Exchange Act of 1934 (15 U.S.C. 78m(e)) is amend-
ed— 
(A) by striking ‘‘offsetting’’ each place that 
term appears and inserting ‘‘fee’’; 
(B) in paragraph (3) by striking ‘‘para-
graphs (5) and (6)’’ and inserting ‘‘paragraph 
(5)’’; 
(C) by amending paragraph (4) to read as 
follows: 
‘‘(4) FEE COLLECTIONS.—Fees collected pursuant 
to this subsection shall be deposited and credited in 
accordance with section 4(g) of this title.’’; 
(D) in paragraph (5), by striking ‘‘of the 
fiscal years 2003 through 2011’’ and inserting 
‘‘fiscal year’’; 
(E) by striking paragraphs (6), (7), and 
(8); 
(F) by redesignating paragraph (7) as 
paragraph (6); 
(G) by inserting after paragraph (6), as so 
redesignated, the following: 
‘‘(7) REVIEW AND EFFECTIVE DATE.—In exer-
cising its authority under this subsection, the Com-
mission shall not be required to comply with the pro-
visions of section 553 of title 5. An adjusted rate pre-
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† HR 4173 EAS 
scribed under paragraph (5) and published under 
paragraph (8) shall not be subject to judicial review. 
An adjusted rate prescribed under paragraph (5) 
shall take effect on the first day of the fiscal year to 
which such rate applies.’’; 
(H) by striking paragraph (9); 
(I) by redesignating paragraph (10) as 
paragraph (8); and 
(J) in paragraph (8), as so redesignated, by 
striking ‘‘6(b)(10)’’ and inserting ‘‘6(b)(6)’’. 
(3) SECTION 14 OF THE SECURITIES EXCHANGE 
ACT
OF
1934.—Section 14(g) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78n(g)) is amended— 
(A) by striking the word ‘‘offsetting’’ each 
time that it appears and inserting in its place 
the word ‘‘fee’’; 
(B) in paragraph (1)(A), by striking ‘‘para-
graphs (5) and (6)’’ each time it appears and 
inserting ‘‘paragraph (5)’’; 
(C) in paragraph (3), by striking ‘‘para-
graphs (5) and (6)’’ and inserting ‘‘paragraph 
(5)’’; 
(D) by amending paragraph (4) to read as 
follows:
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† HR 4173 EAS 
‘‘(4) FEE COLLECTIONS.—Fees collected pursuant 
to this subsection shall be deposited and credited in 
accordance with section 4(g) of this title.’’; 
(E) in paragraph (5), by striking ‘‘of the 
fiscal years 2003 through 2011’’ and inserting 
‘‘fiscal year’’; 
(F) by striking paragraphs (6), (8), and 
(9); 
(G) by redesignating paragraph (7) as 
paragraph (6); 
(H) by inserting after paragraph (6), as so 
redesignated, the following: 
‘‘(7) REVIEW AND EFFECTIVE DATE.—In exer-
cising its authority under this subsection, the Com-
mission shall not be required to comply with the pro-
visions of section 553 of title 5. An adjusted rate pre-
scribed under paragraph (5) and published under 
paragraph (8) shall not be subject to judicial review. 
An adjusted rate prescribed under paragraph (5) 
shall take effect on the first day of the fiscal year to 
which such rate applies.’’; 
(I) by redesignating paragraphs (10) and 
(11) as paragraphs (8) and (9), respectively; and 
(J) in paragraph (9), as so redesignated, by 
striking ‘‘6(b)(10)’’ and inserting ‘‘6(b)(7)’’.
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† HR 4173 EAS 
(d) REPEAL
OF AUTHORIZATION
OF APPROPRIA-
TIONS.—Section 35 of the Securities Exchange Act of 1934 
(15 U.S.C. 78kk) is repealed. 
(e) EFFECTIVE DATE AND TRANSITION PROVISIONS.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this sec-
tion shall be effective on the first day of the fiscal 
year following the fiscal year in which this Act is en-
acted. 
(2) TRANSITION
PERIOD.—For the fiscal year 
following the fiscal year in which this Act is enacted, 
the budget of the Commission shall be deemed to be 
the budget submitted by the Chairman of the Commis-
sion to the President for such fiscal year in accord-
ance with the provisions of section 1108 of title 31, 
United States Code. 
(3) OTHER PROVISIONS.—The amendments made 
by this section to subsections (g) and (j)(1) of section 
31 of the Securities Exchange Act of 1934 (15 U.S.C. 
78ee) shall be effective on the date of enactment of this 
Act, and shall require the Commission to make and 
publish an annual adjustment to the fee rates appli-
cable under subsections (b) and (c) of section 31 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78ee) for 
the fiscal year following the fiscal year in which this
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† HR 4173 EAS 
Act is enacted. The adjusted rate described in the pre-
ceding sentence shall supersede any previously pub-
lished adjusted rate applicable under subsections (b) 
and (c) of section 31 of the Securities Exchange Act 
of 1934 for the fiscal year following the fiscal year in 
which this Act is enacted and shall take effect on the 
first day of the fiscal year following the fiscal year in 
which this Act is enacted, except that, if this Act is 
enacted on or after August 31 and on or prior to Sep-
tember 30, the adjusted rate described in the first sen-
tence shall be published not later than 15 days after 
the date of enactment of this Act and take effect 30 
days thereafter, and the Commission shall continue to 
collect fees under subsections (b) and (c) of section 31 
of the Securities Exchange Act of 1934 at the rate in 
effect during the preceding fiscal year until the ad-
justed rate is effective. 
TITLE 
X—BUREAU 
OF 
CON-
SUMER FINANCIAL PROTEC-
TION 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Consumer Financial 
Protection Act of 2010’’.
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† HR 4173 EAS 
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 com-
mon control with another person. 
(2) BUREAU.—The term ‘‘Bureau’’ means the 
Bureau of Consumer Financial Protection. 
(3) BUSINESS OF INSURANCE.—The term ‘‘busi-
ness of insurance’’ 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 insurance or the 
reinsuring of risks conducted by persons who act as, 
or are, officers, directors, agents, or employees of in-
surers or who are other persons authorized to act on 
behalf of such persons. 
(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 SERV-
ICE.—The term ‘‘consumer financial product or serv-
ice’’ means any financial product or service that is 
described in one or more categories under—
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† HR 4173 EAS 
(A) paragraph (13) and is offered or pro-
vided for use by consumers primarily for per-
sonal, family, or household purposes; or 
(B) clause (i), (iii), (ix), or (x) of para-
graph (13)(A), and is delivered, offered, or pro-
vided in connection with a consumer financial 
product or service referred to in subparagraph 
(A). 
(6) COVERED PERSON.—The term ‘‘covered per-
son’’ means— 
(A) any person that engages in offering or 
providing a consumer financial product or serv-
ice; and 
(B) any affiliate of a person described in 
subparagraph (A) if such affiliate acts as a serv-
ice 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 pur-
chase property or services and defer payment for such 
purchase. 
(8) DEPOSIT-TAKING ACTIVITY.—The term ‘‘de-
posit-taking activity’’ means— 
(A) the acceptance of deposits, maintenance 
of deposit accounts, or the provision of services
1205 
† HR 4173 EAS 
related to the acceptance of deposits or the main-
tenance of deposit accounts; 
(B) the acceptance of funds, the provision of 
other services related to the acceptance of funds, 
or the maintenance 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 fa-
cilitating 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) ENUMERATED CONSUMER LAWS.—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.);
1206 
† HR 4173 EAS 
(C) the Electronic Fund Transfer Act (15 
U.S.C. 1693 et seq.); 
(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 sec-
tions 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 Federal 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 Pro-
tection Act of 1994 (15 U.S.C. 1601 note);
1207 
† HR 4173 EAS 
(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.); and 
(Q) section 626 of the Omnibus Appropria-
tions Act, 2009 (Public Law 111–8). 
(12) FEDERAL CONSUMER FINANCIAL LAW.—The 
term ‘‘Federal 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 pre-
scribed by the Bureau under this title, an enumerated 
consumer law, or pursuant to the authorities trans-
ferred under subtitles F and H. The term does not in-
clude the Federal Trade Commission Act. 
(13) FINANCIAL
PRODUCT
OR
SERVICE.—The 
term ‘‘financial product or service’’— 
(A) means— 
(i) extending credit and servicing 
loans, including acquiring, purchasing, sell-
ing, brokering, or other extensions of credit
1208 
† HR 4173 EAS 
(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 func-
tional equivalent of purchase finance ar-
rangements, 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 involv-
ing real property, at the inception of 
the initial lease, the transaction is in-
tended 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 or performing appraisals of real es-
tate or personal property; 
(iv) engaging in deposit-taking activi-
ties, transmitting or exchanging funds, or 
otherwise acting as a custodian of funds or
1209 
† HR 4173 EAS 
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 re-
load, stored value, only if the seller exercises 
substantial control over the terms or condi-
tions 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 con-
tract 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 services 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 col-
lection, or check guaranty services;
1210 
† HR 4173 EAS 
(vii) providing payments or other fi-
nancial 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 net-
work used for processing payments data, in-
cluding payments made through an online 
banking system or mobile telecommuni-
cations network, except that a person shall 
not be deemed to be a covered person with 
respect to financial data processing solely 
because the person— 
(I) unknowingly or incidentally 
processes, stores, or transmits over the 
Internet, telephone line, mobile net-
work, or any other mode of trans-
mission, as part of a stream of other 
types of data, financial data in a 
manner that such data is undifferen-
tiated from other types of data of the 
same form that the person processes, 
stores, or transmits; 
(II) is a merchant, retailer, or 
seller of any nonfinancial good or serv-
1211 
† HR 4173 EAS 
ice who engages in financial data proc-
essing by transmitting or storing pay-
ments data about a consumer exclu-
sively for purpose of initiating pay-
ments 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 con-
sumer; or 
(III) provides access to a host 
server to a person for purposes of ena-
bling that person to establish and 
maintain a website; 
(viii) providing financial advisory 
services to consumers on individual finan-
cial matters or relating to proprietary fi-
nancial products or services (other than by 
publishing any bona fide newspaper, news 
magazine, or business or financial publica-
tion of general and regular circulation, in-
cluding publishing market data, news, or 
data analytics or investment information or 
recommendations that are not tailored to
1212 
† HR 4173 EAS 
the individual needs of a particular con-
sumer), including— 
(I) providing credit counseling to 
any consumer; and 
(II) providing services to assist a 
consumer with debt management or 
debt settlement, modifying the terms of 
any extension of credit, or avoiding 
foreclosure; 
(ix) collecting, analyzing, maintaining, 
or providing consumer report information 
or other account information, including in-
formation 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 finan-
cial product or service, except to the extent 
that— 
(I) a person— 
(aa) collects, analyzes, or 
maintains information that re-
lates solely to the transactions be-
tween a consumer and such per-
son; or
1213 
† HR 4173 EAS 
(bb) provides the information 
described in item (aa) to an affil-
iate of such person; 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 service to the consumer, 
other than credit described in section 
1027(a)(2)(A); 
(x) collecting debt related to any con-
sumer financial 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
1214 
† HR 4173 EAS 
Federal law or regulation applicable to 
a bank or a financial holding com-
pany, and has, or likely will have, a 
material impact on consumers; and 
(B) does not include the business of insur-
ance. 
(14) FOREIGN
EXCHANGE.—The term ‘‘foreign 
exchange’’ means the exchange, for compensation, of 
currency of the United States or of a foreign govern-
ment for currency of another government. 
(15) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the same meaning as in sec-
tion 101 of the Federal Credit Union Act (12 U.S.C. 
1752). 
(16) PAYMENT
INSTRUMENT.—The term ‘‘pay-
ment instrument’’ means a check, draft, warrant, 
money order, traveler’s check, electronic instrument, 
or other instrument, payment of funds, or monetary 
value (other than currency). 
(17) PERSON.—The term ‘‘person’’ means an in-
dividual, partnership, company, corporation, associa-
tion (incorporated or unincorporated), trust, estate, 
cooperative organization, or other entity. 
(18) PERSON REGULATED BY THE COMMODITY 
FUTURES TRADING COMMISSION.—The term ‘‘person
1215 
† HR 4173 EAS 
regulated by the Commodity Futures Trading Com-
mission’’ means any person that is registered, or re-
quired by statute or regulation to be registered, 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 Fu-
tures Trading Commission under the Commodity Ex-
change Act. 
(19) PERSON
REGULATED
BY
THE
COMMIS-
SION.—The term ‘‘person regulated by the Commis-
sion’’ 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 registered under the Investment Company 
Act of 1940, and any company that has elected 
to be regulated as a business development com-
pany under that Act; 
(D) a national securities exchange that is 
required to be registered under the Securities Ex-
change Act of 1934;
1216 
† HR 4173 EAS 
(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 registered 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 reg-
istered with the Commission; 
(I) any securities information processor 
that is required to be registered with the Com-
mission; 
(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 Secu-
rities Exchange Act of 1934; and 
(L) any employee, agent, or contractor act-
ing on behalf of, registered with, or providing 
services to, any person described in any of sub-
paragraphs (A) through (K), but only to the ex-
tent that any person described in any of sub-
paragraphs (A) through (K), or the employee,
1217 
† HR 4173 EAS 
agent, or contractor of such person, acts in a reg-
ulated capacity. 
(20) PERSON REGULATED BY A STATE INSUR-
ANCE REGULATOR.—The term ‘‘person regulated by a 
State insurance regulator’’ means any person that is 
engaged in the business of insurance and subject to 
regulation by any State insurance regulator, but only 
to the extent that such person acts in such capacity. 
(21) 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), regardless 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 Inter-
nal Revenue Code of 1986), but only to the extent 
that the person acts in such capacity.
1218 
† HR 4173 EAS 
(22) PRUDENTIAL REGULATOR.—The term ‘‘pru-
dential regulator’’ means— 
(A) in the case of an insured depository in-
stitution, the appropriate Federal banking agen-
cy, 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. 
(23) RELATED PERSON.—The term ‘‘related per-
son’’— 
(A) shall apply only with respect to a cov-
ered 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 per-
son 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 shareholder of, or agent for, 
such covered person; 
(ii) any shareholder, consultant, joint 
venture partner, or other person, as deter-
1219 
† HR 4173 EAS 
mined 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 (in-
cluding any attorney, appraiser, or ac-
countant) who knowingly or recklessly par-
ticipates in any— 
(I) violation of any provision of 
law or regulation; or 
(II) breach of a fiduciary duty. 
(24) SERVICE PROVIDER.— 
(A) IN GENERAL.—The term ‘‘service pro-
vider’’ means any person that provides a mate-
rial service to a covered person in connection 
with the offering or provision by such covered 
person of a consumer financial product or serv-
ice, including a person that— 
(i) participates in designing, oper-
ating, or maintaining the consumer finan-
cial 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
1220 
† HR 4173 EAS 
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 pro-
vider’’ 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 ministe-
rial service; or 
(ii) time or space for an advertisement 
for a consumer financial product or service 
through print, newspaper, 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. 
(25) 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 Is-
lands, Guam, American Samoa, or the United States 
Virgin Islands or any federally recognized Indian
1221 
† HR 4173 EAS 
tribe, as defined by the Secretary of the Interior 
under section 104(a) of the Federally Recognized In-
dian Tribe List Act of 1994 (25 U.S.C. 479a–1(a)). 
(26) STORED VALUE.—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. 
(27) TRANSMITTING OR EXCHANGING FUNDS.— 
The term ‘‘transmitting or exchanging funds’’ means 
receiving currency, monetary value, or payment in-
struments from a consumer for the purpose of ex-
changing or transmitting the same by any means, in-
cluding transmission by wire, facsimile, electronic 
transfer, courier, the Internet, or through bill pay-
ment services or through other businesses that facili-
tate third-party transfers within the United States or 
to or from the United States.
1222 
† HR 4173 EAS 
Subtitle A—Bureau of Consumer 
Financial Protection 
SEC. 1011. ESTABLISHMENT OF THE BUREAU. 
(a) BUREAU ESTABLISHED.—There is established in 
the Federal Reserve System the Bureau of Consumer Finan-
cial Protection, which shall regulate the offering and provi-
sion of consumer financial products or services under the 
Federal consumer financial laws. 
(b) DIRECTOR AND DEPUTY DIRECTOR.— 
(1) IN GENERAL.—There is established the posi-
tion 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 nomi-
nate the Director from among individuals who are 
citizens of the United States. 
(4) COMPENSATION.—The Director shall be com-
pensated at the rate prescribed for level II of the Ex-
ecutive 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
1223 
† HR 4173 EAS 
(B) serve as acting Director in the absence 
or unavailability 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. 
(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.
1224 
† HR 4173 EAS 
SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS. 
(a) POWERS OF THE BUREAU.—The Bureau is author-
ized to establish the general policies of the Bureau with re-
spect to all executive and administrative functions, includ-
ing— 
(1) the establishment of rules for conducting the 
general business of the Bureau, in a manner not in-
consistent with this title; 
(2) to bind the Bureau and enter into contracts; 
(3) directing the establishment and maintenance 
of divisions or other offices within the Bureau, in 
order to carry out the responsibilities under the Fed-
eral consumer financial laws, and to satisfy the re-
quirements of other applicable law; 
(4) to coordinate and oversee the operation of all 
administrative, enforcement, and research activities of 
the Bureau; 
(5) to adopt and use a seal; 
(6) to determine the character of and the neces-
sity for the obligations and expenditures of the Bu-
reau; 
(7) the appointment and supervision of per-
sonnel employed by the Bureau; 
(8) the distribution of business among personnel 
appointed and supervised by the Director and among 
administrative units of the Bureau;
1225 
† HR 4173 EAS 
(9) the use and expenditure of funds; 
(10) implementing the Federal consumer finan-
cial laws through rules, orders, guidance, interpreta-
tions, statements of policy, examinations, and enforce-
ment 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, rep-
resentative, or agent any power vested in the Bureau by 
law. 
(c) AUTONOMY OF THE BUREAU.— 
(1) COORDINATION WITH THE BOARD OF GOV-
ERNORS.—Notwithstanding section 18 of the Federal 
Trade Commission Act (15 U.S.C. 57a) and any 
other provision of law applicable to the supervision 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 per-
sons subject to the jurisdiction of the Board of Gov-
ernors for compliance with the Federal consumer fi-
nancial laws. 
(2) AUTONOMY.—Notwithstanding the authori-
ties granted to the Board of Governors under the Fed-
eral Reserve Act, the Board of Governors may not—
1226 
† HR 4173 EAS 
(A) intervene in any matter or proceeding 
before the Director, including examinations or 
enforcement actions, unless otherwise specifically 
provided by law; 
(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 division or office of the Board of Gov-
ernors 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 Governors. The Board of Governors may 
not delay or prevent the issuance of any rule or order 
of the Bureau. 
(4) RECOMMENDATIONS AND TESTIMONY.—No of-
ficer or agency of the United States shall have any 
authority to require the Director or any other officer 
of the Bureau to submit legislative recommendations, 
or testimony or comments on legislation, to any offi-
cer or agency of the United States for approval, com-
ments, or review prior to the submission of such rec-
ommendations, testimony, or comments to the Con-
gress, if such recommendations, testimony, or com-
ments to the Congress include a statement indicating
1227 
† HR 4173 EAS 
that the views expressed therein are those of the Direc-
tor or such officer, and do not necessarily reflect the 
views of the Board of Governors or the President. 
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. 
(B) EMPLOYEES OF THE BUREAU.—The Di-
rector is authorized to employ attorneys, compli-
ance examiners, compliance supervision ana-
lysts, economists, statisticians, and other employ-
ees as may be deemed necessary to conduct the 
business of the Bureau. Notwithstanding any 
other provision of law, all such employees shall 
be appointed and compensated on terms and 
conditions that are consistent with the terms and 
conditions set forth in section 11(l) of the Fed-
eral Reserve Act (12 U.S.C. 248(l)). 
(2) COMPENSATION.—The Director shall at all 
times provide compensation and benefits to each class 
of employees that, at a minimum, are equivalent to 
the compensation and benefits then being provided by
1228 
† HR 4173 EAS 
the Board of Governors for the corresponding class of 
employees. 
(b) SPECIFIC FUNCTIONAL UNITS.— 
(1) RESEARCH.—The Director shall establish a 
unit whose functions shall include researching, ana-
lyzing, 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 re-
garding consumer financial products or services; 
(D) consumer awareness and understanding 
of costs, risks, and benefits of consumer financial 
products or services; and 
(E) consumer behavior with respect to con-
sumer financial products or services. 
(2) COMMUNITY AFFAIRS.—The Director shall es-
tablish a unit whose functions shall include providing 
information, guidance, and technical assistance re-
garding the offering and provision of consumer finan-
1229 
† HR 4173 EAS 
cial products or services to traditionally underserved 
consumers and communities. 
(3) COLLECTING AND TRACKING COMPLAINTS.— 
(A) IN GENERAL.—The Director shall estab-
lish a unit whose functions shall include estab-
lishing a single, toll-free telephone number, a 
website, and a database or utilizing 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 practicable, State agencies may receive 
appropriate complaints from the systems estab-
lished under subparagraph (A), if— 
(i) the State agency system has the 
functional capacity to receive calls or elec-
tronic reports routed by the Bureau systems; 
and 
(ii) the State agency has satisfied any 
conditions of participation in the system 
that the Bureau may establish, including
1230 
† HR 4173 EAS 
treatment of personally identifiable infor-
mation and sharing of information on com-
plaint resolution or related compliance pro-
cedures and resources. 
(C) REPORTS TO THE CONGRESS.—The Di-
rector shall present an annual report to Congress 
not later than March 31 of each year on the com-
plaints received by the Bureau in the prior year 
regarding consumer financial products and serv-
ices. Such report shall include information and 
analysis about complaint numbers, complaint 
types, and, where applicable, information about 
resolution of complaints. 
(D) DATA SHARING REQUIRED.—To facili-
tate preparation of the reports required under 
subparagraph (C), supervision and enforcement 
activities, and monitoring of the market for con-
sumer financial products and services, the Bu-
reau shall share consumer complaint informa-
tion with prudential regulators, the Federal 
Trade Commission, other Federal agencies, and 
State agencies, consistent with Federal law ap-
plicable to personally identifiable information. 
The prudential regulators, the Federal Trade 
Commission, and other Federal agencies shall
1231 
† HR 4173 EAS 
share data relating to consumer complaints re-
garding consumer financial products and serv-
ices with the Bureau, consistent with Federal 
law applicable to personally identifiable infor-
mation. 
(c) OFFICE OF FAIR LENDING AND EQUAL OPPOR-
TUNITY.— 
(1) ESTABLISHMENT.—The Director shall estab-
lish 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, in-
cluding— 
(A) providing oversight and enforcement of 
Federal laws intended to ensure the fair, equi-
table, and nondiscriminatory access to credit for 
both individuals and communities that are en-
forced by the Bureau, including the Equal Credit 
Opportunity Act and the Home Mortgage Disclo-
sure Act; 
(B) coordinating fair lending and fair 
housing efforts of the Bureau with other Federal 
agencies and State regulators, as appropriate, to
1232 
† HR 4173 EAS 
promote consistent, efficient, and effective en-
forcement of Federal fair lending laws; 
(C) working with private industry, fair 
lending, civil rights, consumer and community 
advocates on the promotion of fair lending com-
pliance 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 es-
tablished the position of Assistant Director of the Bu-
reau for Fair Lending and Equal Opportunity, 
who— 
(A) shall be appointed by the Director; and 
(B) shall carry out such duties as the Direc-
tor may delegate to such Assistant Director. 
(d) OFFICE OF FINANCIAL LITERACY.— 
(1) ESTABLISHMENT.—The Director shall estab-
lish an Office of Financial Literacy, which shall be 
responsible for developing and implementing initia-
tives intended to educate and empower consumers to 
make better informed financial decisions. 
(2) OTHER
DUTIES.—The Office of Financial 
Literacy shall develop and implement a strategy to 
improve the financial literacy of consumers that in-
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† HR 4173 EAS 
cludes measurable goals and objectives, in consulta-
tion with the Financial Literacy and Education 
Commission, consistent with the National Strategy 
for Financial Education, through activities including 
providing opportunities for consumers to access— 
(A) financial counseling; 
(B) information to assist with the evalua-
tion 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 edu-
cational expenses and the submission of fi-
nancial aid applications, and other major 
purchases; 
(ii) reduce debt; and 
(iii) improve the financial situation of 
the consumer; 
(E) assistance in developing long-term sav-
ings strategies; and 
(F) wealth building and financial services 
during the preparation process to claim earned 
income tax credits and Federal benefits.
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(3) COORDINATION.—The Office of Financial 
Literacy 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 fi-
nancial literacy of consumers; and 
(B) working with the research unit estab-
lished 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 lit-
eracy activities and strategy to improve financial lit-
eracy 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;
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† HR 4173 EAS 
(B) by redesignating subparagraph (C) as 
subparagraph (D); and 
(C) by inserting after subparagraph (B) the 
following new subparagraph: 
‘‘(C) the Director of the Bureau of Con-
sumer Financial Protection; and’’. 
(6) CONFORMING AMENDMENT.—Section 513(d) 
of the Financial Literacy and Education Improve-
ment 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.’’. 
(e) OFFICE OF SERVICE MEMBER AFFAIRS.— 
(1) IN GENERAL.—The Director shall establish 
an Office of Service Member Affairs, which shall be 
responsible for developing and implementing initia-
tives for service members and their families intended 
to— 
(A) educate and empower service members 
and their families to make better informed deci-
sions regarding consumer 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
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† HR 4173 EAS 
their families and responses to those complaints 
by the Bureau or other appropriate Federal or 
State agency; and 
(C) coordinate efforts among Federal and 
State agencies, as appropriate, regarding con-
sumer protection measures 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 lo-
cated near military bases, military treatment fa-
cilities, or other similar military facilities. 
(B) AGREEMENTS.—The Director is author-
ized to enter into memoranda of understanding 
and similar agreements with the Department of 
Defense, including any branch or agency as au-
thorized by the department, in order to carry out 
the business of the Office of Service Member Af-
fairs.
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(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. 
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 informa-
tion on emerging practices in the consumer financial prod-
ucts or services industry, including regional trends, con-
cerns, and other relevant information. 
(b) MEMBERSHIP.—In appointing the members of the 
Consumer Advisory Board, the Director shall seek to assem-
ble experts in consumer protection, financial services, com-
munity development, fair lending, and consumer financial 
products or services 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.
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(d) COMPENSATION AND TRAVEL EXPENSES.—Mem-
bers 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 trans-
portation and subsistence, while away from their 
homes or regular places of business. 
SEC. 1015. COORDINATION. 
The Bureau shall coordinate with the Commission, the 
Commodity Futures Trading Commission, the Federal 
Trade Commission, and other Federal agencies and State 
regulators, as appropriate, to promote consistent regulatory 
treatment of consumer financial and investment products 
and services. 
SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CON-
GRESS. 
(a) APPEARANCES BEFORE CONGRESS.—The Director 
of the Bureau shall appear before the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Represent-
atives at semi-annual hearings regarding the reports re-
quired under subsection (b).
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(b) REPORTS REQUIRED.—The Bureau shall, concur-
rent with each semi-annual hearing referred to in sub-
section (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 of the 
House of Representatives, a report, beginning with the ses-
sion following the designated transfer date. 
(c) CONTENTS.—The reports required by subsection (b) 
shall include— 
(1) a discussion of the significant problems faced 
by consumers 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 pre-
ceding year and the plan of the Bureau for rules, or-
ders, or other initiatives to be undertaken during the 
upcoming period; 
(4) an analysis of complaints about consumer fi-
nancial products or services that the Bureau has re-
ceived and collected in its central database on com-
plaints during the preceding year;
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† HR 4173 EAS 
(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 
supervisory actions with respect to covered persons 
which are not credit unions or depository institu-
tions; 
(7) an assessment of significant actions by State 
attorneys general or State regulators relating to Fed-
eral consumer financial law; and 
(8) an analysis of the efforts of the Bureau to 
fulfill the fair lending mission of the Bureau. 
SEC. 1017. FUNDING; PENALTIES AND FINES. 
(a) TRANSFER
OF FUNDS FROM BOARD OF GOV-
ERNORS.— 
(1) IN GENERAL.—Each year (or quarter of such 
year), beginning on the designated transfer date, and 
each quarter thereafter, 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 necessary to carry 
out the authorities of the Bureau under Federal con-
sumer financial law, taking into account such other
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† HR 4173 EAS 
sums made available to the Bureau from the pre-
ceding year (or quarter of such year). 
(2) FUNDING CAP.— 
(A) IN GENERAL.—Notwithstanding para-
graph (1), and in accordance with this para-
graph, 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 fis-
cal year 2012; and 
(iii) 12 percent of such expenses in fis-
cal year 2013, and in each year thereafter. 
(B) AMOUNT ADJUSTED FOR INFLATION.— 
The dollar amount referred to in subparagraph 
(A)(iii) shall be adjusted annually, using the 
percent by which the average urban consumer 
price index for the quarter preceding the date of 
the payment differs from the average of that 
index for the same quarter in the prior year.
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(3) TRANSITION PERIOD.—Beginning on the date 
of enactment 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 Bu-
reau 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 fore-
casts 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 prepared by the Director in the 
ordinary course of the operations 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.
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† HR 4173 EAS 
(C) FINANCIAL
MANAGEMENT
SYSTEMS.— 
The Bureau shall implement and maintain fi-
nancial management systems that comply sub-
stantially with Federal financial management 
systems requirements and applicable Federal ac-
counting 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 sub-
section 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 Di-
rector of the Office of Management and Budget 
with respect to any report, plan, forecast, or 
other information referred to in subparagraph 
(A) or any jurisdiction or oversight over the af-
fairs or operations of the Bureau. 
(5) AUDIT OF THE BUREAU.— 
(A) IN GENERAL.—The Comptroller General 
shall annually audit the financial transactions
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† HR 4173 EAS 
of the Bureau in accordance with the United 
States generally accepted government auditing 
standards, as may be prescribed by the Comp-
troller 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 af-
forded full facilities for verifying transactions 
with the balances or securities held by deposi-
tories, fiscal agents, and custodians. All such 
books, accounts, documents, 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
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† HR 4173 EAS 
cost to the Comptroller General, and the right of 
access of the Comptroller General to such infor-
mation 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 an-
nual audit conducted under this subsection. The 
report to the Congress shall set forth the scope of 
the audit and shall include the statement of as-
sets 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 Congress of the financial op-
erations 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 sub-
mitted to the Congress. 
(C) ASSISTANCE AND COSTS.—For the pur-
pose of conducting an audit under this sub-
section, the Comptroller General may, in the dis-
cretion of the Comptroller General, employ by 
contract, without regard to section 3709 of the
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† HR 4173 EAS 
Revised Statutes of the United States (41 U.S.C. 
5), professional services of firms and organiza-
tions of certified public accountants for tem-
porary periods or for special purposes. Upon the 
request of the Comptroller General, the Director 
of the Bureau shall transfer to the Government 
Accountability Office from funds available, the 
amount requested by the Comptroller General to 
cover the full costs of any audit and report con-
ducted by the Comptroller General. The Comp-
troller 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.— 
(1) SEPARATE
FUND
IN
FEDERAL
RESERVE 
BOARD
ESTABLISHED.—There is established in the 
Federal Reserve Board a separate fund, to be known 
as the ‘‘Consumer Financial Protection Fund’’ (re-
ferred to in this section as the ‘‘Bureau Fund’’). 
(2) FUND RECEIPTS.—All amounts transferred to 
the Bureau under subsection (a) shall be deposited 
into the Bureau Fund.
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† HR 4173 EAS 
(3) INVESTMENT AUTHORITY.— 
(A) AMOUNTS IN BUREAU FUND MAY BE IN-
VESTED.—The Bureau may request the Board of 
Governors to invest 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 by 
the Board of Governors 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 Bu-
reau Fund shall be credited to the Bureau Fund. 
(c) USE OF FUNDS.— 
(1) IN
GENERAL.—Funds obtained by, trans-
ferred to, or credited to the Bureau Fund shall be im-
mediately available to the Bureau and under the con-
trol of the Director, and shall remain available until 
expended, to pay the expenses of the Bureau in car-
rying out its duties and responsibilities. The com-
pensation of the Director and other employees of the
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† HR 4173 EAS 
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 Bu-
reau Fund shall not be construed to be Government 
funds or appropriated monies. 
(3) AMOUNTS
NOT
SUBJECT
TO
APPORTION-
MENT.—Notwithstanding any other provision of law, 
amounts in the Bureau Fund and in the Civil Pen-
alty Fund established under subsection (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 
Board a fund to be known as the ‘‘Consumer Finan-
cial Protection Civil Penalty Fund’’ (referred to in 
this subsection as the ‘‘Civil Penalty Fund’’). 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 pen-
alty collected.
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† HR 4173 EAS 
(2) PAYMENT TO VICTIMS.—Amounts in the Civil 
Penalty Fund shall be available to the Bureau, with-
out fiscal year limitation, for payments to the victims 
of activities for which civil penalties have been im-
posed under the Federal consumer financial laws. To 
the extent such victims cannot be located or such pay-
ments are otherwise not practicable, the Bureau may 
use such funds for the purpose of consumer education 
and financial literacy programs. 
SEC. 1018. EFFECTIVE DATE. 
This subtitle shall become effective on the date of enact-
ment 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 markets 
for consumer financial products and services are fair, 
transparent, and competitive. 
(b) OBJECTIVES.—The Bureau is authorized to exer-
cise its authorities under Federal consumer financial law 
for the purposes of ensuring that, with respect to consumer 
financial products and services—
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† HR 4173 EAS 
(1) consumers are provided with timely and un-
derstandable information to make responsible deci-
sions about financial transactions; 
(2) consumers are protected from unfair, decep-
tive, or abusive acts and practices and from discrimi-
nation; 
(3) outdated, unnecessary, or unduly burdensome 
regulations 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 institution, in order to promote fair 
competition; and 
(5) markets for consumer financial products and 
services operate transparently and efficiently to facili-
tate 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 pub-
lishing information relevant to the functioning of 
markets for consumer financial products and services
1251 
† HR 4173 EAS 
to identify risks to consumers and the proper func-
tioning of such markets; 
(4) subject to sections 1024 through 1026, super-
vising covered persons for compliance with Federal 
consumer financial law, and taking appropriate en-
forcement action to address violations of Federal con-
sumer financial law; 
(5) issuing rules, orders, and guidance imple-
menting Federal 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 exer-
cise its authorities under Federal consumer financial law 
to administer, enforce, and otherwise implement the provi-
sions of Federal consumer 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 appropriate to enable the Bureau to 
administer and carry out the purposes and objectives 
of the Federal consumer financial laws, and to pre-
vent evasions thereof.
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† HR 4173 EAS 
(2) STANDARDS
FOR
RULEMAKING.—In pre-
scribing a rule under the Federal consumer financial 
laws— 
(A) the Bureau shall consider the potential 
benefits and costs to consumers and covered per-
sons, including the potential reduction of access 
by consumers to consumer financial products or 
services resulting from such rule; 
(B) the Bureau shall consult with the ap-
propriate prudential regulators or other Federal 
agencies prior to proposing a rule and during 
the comment process regarding consistency with 
prudential, market, or systemic objectives admin-
istered by such agencies; and 
(C) if, during the consultation process de-
scribed in subparagraph (B), a prudential regu-
lator provides the Bureau with a written objec-
tion to the proposed rule of the Bureau or a por-
tion thereof, the Bureau shall include in the 
adopting release a description of the objection 
and the basis for the Bureau decision, if any, re-
garding such objection, except that nothing in 
this clause shall be construed as altering or lim-
iting the procedures under section 1023 that may 
apply to any rule prescribed by the Bureau.
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† HR 4173 EAS 
(3) EXEMPTIONS.— 
(A) IN
GENERAL.—The Bureau, by rule, 
may conditionally 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 pur-
poses and objectives of this title, taking into con-
sideration 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 cov-
ered persons; 
(ii) the volume of transactions involv-
ing consumer financial products or services 
in which the class of covered persons en-
gages; 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.
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† HR 4173 EAS 
(4) EXCLUSIVE RULEMAKING AUTHORITY.—Not-
withstanding any other provisions of Federal law and 
except as provided in section 1061(b)(5), to the extent 
that a provision of Federal consumer financial law 
authorizes the Bureau and another Federal agency to 
issue regulations under that provision of law for pur-
poses 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. 
(c) MONITORING.— 
(1) IN GENERAL.—In order to support its rule-
making and other functions, the Bureau shall monitor 
for risks to consumers in the offering or provision of 
consumer financial products or services, including de-
velopments in markets for such products or services. 
(2) CONSIDERATIONS.—In allocating its re-
sources to perform the monitoring required by this 
section, the Bureau may consider, among other fac-
tors— 
(A) likely risks and costs to consumers asso-
ciated with buying or using a type of consumer 
financial product or service;
1255 
† HR 4173 EAS 
(B) understanding by consumers of the risks 
of a type of consumer financial product or serv-
ice; 
(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 provi-
sion of a consumer financial product or service; 
(E) the extent, if any, to which the risks of 
a consumer financial product or service may dis-
proportionately affect traditionally underserved 
consumers; or 
(F) the types, number, and other pertinent 
characteristics of covered persons that offer or 
provide the consumer financial product or serv-
ice. 
(3) REPORTS.—The Bureau shall publish not 
fewer than 1 report of significant findings of its mon-
itoring required by this subsection in each calendar 
year, beginning with the first calendar year that be-
gins at least 1 year after the designated transfer date. 
(4) COLLECTION
OF
INFORMATION.—In con-
ducting research on the offering and provision of con-
sumer financial products or services, the Bureau shall
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† HR 4173 EAS 
have the authority to gather information from time to 
time regarding the organization, business conduct, 
markets, and activities of persons operating in con-
sumer financial services markets. In order to gather 
such information, the Bureau may— 
(A) gather and compile information from 
examination reports concerning covered persons 
or service providers, assessment of consumer com-
plaints, surveys, and interviews of covered per-
sons and consumers, and review of available 
databases; 
(B) require persons to file with the Bureau, 
under oath or otherwise, in such form and with-
in such reasonable period of time as the Bureau 
may prescribe, by rule or order, annual or spe-
cial reports, or answers in writing to specific 
questions, furnishing such information as the 
Bureau may require; and 
(C) make public such information obtained 
by the Bureau under this section, as is in the 
public interest in reports or otherwise in the 
manner best suited for public information and 
use. 
(5) CONFIDENTIALITY RULES.—The Bureau shall 
prescribe rules regarding the confidential treatment of
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† HR 4173 EAS 
information obtained from persons in connection with 
the exercise of its authorities under Federal consumer 
financial law. 
(A) ACCESS BY THE BUREAU TO REPORTS 
OF OTHER REGULATORS.— 
(i) EXAMINATION AND FINANCIAL CON-
DITION REPORTS.—Upon providing reason-
able assurances of confidentiality, the Bu-
reau shall have access to any report of ex-
amination or financial condition made by a 
prudential regulator or other Federal agen-
cy 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 regu-
lator or other Federal agency having juris-
diction over a covered person or service pro-
vider may, in its discretion, furnish to the 
Bureau any other report or other confiden-
tial supervisory information concerning 
any insured depository institution, credit 
union, or other entity examined by such
1258 
† HR 4173 EAS 
agency under authority of any provision of 
Federal law. 
(B) ACCESS BY OTHER REGULATORS TO RE-
PORTS OF THE BUREAU.— 
(i) 
EXAMINATION
REPORTS.—Upon 
providing reasonable assurances of confiden-
tiality, a prudential regulator, a State reg-
ulator, 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 re-
spect to such person, and to all revisions 
made to any such report. 
(ii) PROVISION OF OTHER REPORTS TO 
OTHER REGULATORS.—In addition to the 
reports described in clause (i), the Bureau 
may, in its discretion, furnish to a pruden-
tial regulator or other agency having juris-
diction over a covered person or service pro-
vider any other report or other confidential 
supervisory information concerning such 
person examined by the Bureau under the 
authority of any other provision of Federal 
law.
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† HR 4173 EAS 
(6) PRIVACY CONSIDERATIONS.—In collecting in-
formation from any person, publicly releasing infor-
mation held by the Bureau, or requiring covered per-
sons to publicly report information, 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. 
(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 meet-
ing the purposes and objectives of this title and the 
specific goals stated by the Bureau. The assessment 
shall reflect available evidence and any data that the 
Bureau reasonably may collect. 
(2) REPORTS.—The Bureau shall publish a re-
port 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 pub-
lishing a report of its assessment, the Bureau shall in-
1260 
† HR 4173 EAS 
vite public comment on recommendations for modi-
fying, expanding, or eliminating the newly adopted 
significant rule or order. 
(e) INFORMATION GATHERING.—In conducting any 
monitoring or assessment required by this section, the Bu-
reau may gather information through a variety of methods, 
including by conducting surveys or interviews of consumers. 
SEC. 1023. REVIEW OF BUREAU REGULATIONS. 
(a) REVIEW OF BUREAU REGULATIONS.—On the peti-
tion 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 accordance with rules prescribed pur-
suant 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
1261 
† HR 4173 EAS 
the effect of the rule on the safety and soundness 
of the United States banking system or the sta-
bility 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 Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives. 
(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
1262 
† HR 4173 EAS 
(ii) the date on which the Council 
makes a decision under paragraph (3). 
(2) NO ADVERSE INFERENCE.—After the expira-
tion of any stay imposed under this section, no infer-
ence shall be drawn regarding the validity or enforce-
ability of a regulation which was the subject of the pe-
tition. 
(3) VOTE.— 
(A) IN GENERAL.—The decision to issue a 
stay of, or set aside, any regulation under this 
section shall be made only with the affirmative 
vote in accordance with subparagraph (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 informa-
tion 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 peti-
tion would put the safety and soundness of
1263 
† HR 4173 EAS 
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, unenforce-
able. 
(B) TIMELY ACTION REQUIRED.—The Coun-
cil may not issue a decision to set aside a regu-
lation, or provision thereof, which is the subject 
of a petition under this section after the expira-
tion of the later of— 
(i) 45 days following the date of filing 
of the petition, 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 regula-
tion. 
(5) DISMISSAL DUE TO INACTION.—A petition 
under this section shall be deemed dismissed if the
1264 
† HR 4173 EAS 
Council has not issued a decision to set aside a regu-
lation, 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 prac-
ticable after the decision is made, with an expla-
nation 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 restrict-
ing the application of any other provision of law, except 
as otherwise specifically provided in this section, including 
chapter 5 and chapter 7 of title 5, United States Code, to
1265 
† HR 4173 EAS 
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 engag-
ing in a rulemaking in accordance with applicable law. 
(f) IMPLEMENTING RULES.—The Council shall pre-
scribe procedural 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, broker-
age, or servicing of loans secured by real estate 
for use by consumers primarily for personal, 
family, or household purposes, or loan modifica-
tion or foreclosure relief services in connection 
with such loans; or 
(B) is a larger participant of a market for 
other consumer financial products or services, as 
defined by rule in accordance with paragraph 
(2).
1266 
† HR 4173 EAS 
(2) RULEMAKING TO DEFINE COVERED PERSONS 
SUBJECT TO THIS SECTION.—The Bureau shall con-
sult with the Federal Trade Commission prior to 
issuing a rule to define covered persons subject to this 
section, in accordance with paragraph (1)(B). The 
Bureau shall issue its initial rule within 1 year of 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 thereunder, activities of affiliated 
companies (other than insured depository insti-
tutions or insured credit unions) shall be aggre-
gated. 
(b) SUPERVISION.— 
(1) IN GENERAL.—The Bureau shall require re-
ports and conduct examinations on a periodic basis 
of persons described in subsection (a)(1) for purposes 
of— 
(A) assessing compliance with the require-
ments of Federal consumer financial law;
1267 
† HR 4173 EAS 
(B) obtaining information about the activi-
ties and compliance systems or procedures of 
such person; and 
(C) detecting and assessing risks to con-
sumers 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 of the risks 
posed to consumers in the relevant product markets 
and geographic markets, and taking into consider-
ation, 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 con-
sumer protection; and
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† HR 4173 EAS 
(E) any other factors that the Bureau deter-
mines 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 sub-
section (a)(1) and requirements regarding reports to 
be submitted by such persons. 
(4) USE OF EXISTING REPORTS.—The Bureau 
shall, to the fullest extent possible, use— 
(A) reports pertaining to persons described 
in subsection (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 pub-
licly. 
(5) PRESERVATION OF AUTHORITY.—Nothing in 
this title may be construed as limiting the authority 
of the Director to require reports from persons de-
scribed in subsection (a)(1), as permitted under para-
graph (1), regarding information owned or under the 
control of such person, regardless of whether such in-
1269 
† HR 4173 EAS 
formation is maintained, stored, or processed by an-
other person. 
(6) REPORTS OF TAX LAW NONCOMPLIANCE.— 
The Bureau shall provide the Commissioner of Inter-
nal Revenue with any report of examination or re-
lated information identifying possible tax law non-
compliance. 
(7) 
REGISTRATION, 
RECORDKEEPING, 
AND 
OTHER REQUIREMENTS FOR CERTAIN PERSONS.— 
(A) IN GENERAL.—The Bureau shall pre-
scribe rules to facilitate supervision of persons 
described in subsection (a)(1) and assessment 
and detection of risks to consumers. 
(B) REGISTRATION.— 
(i) IN
GENERAL.—The Bureau shall 
prescribe rules regarding registration re-
quirements for persons described in sub-
section (a)(1). 
(ii) EXCEPTION
FOR
RELATED
PER-
SONS.—The Bureau may not impose re-
quirements under this section regarding the 
registration of a related person. 
(iii) REGISTRATION
INFORMATION.— 
Subject to rules prescribed by the Bureau, 
the Bureau shall publicly disclose the reg-
1270 
† HR 4173 EAS 
istration information about persons de-
scribed in subsection (a)(1) to facilitate the 
ability of consumers to identify persons de-
scribed in subsection (a)(1) registered with 
the Bureau. 
(C) RECORDKEEPING.—The Bureau may 
require a person described in subsection (a)(1), 
to generate, provide, or retain records for the 
purposes of facilitating supervision of such per-
sons and assessing and detecting risks to con-
sumers. 
(D) REQUIREMENTS CONCERNING OBLIGA-
TIONS.—The Bureau may prescribe rules regard-
ing a person described in subsection (a)(1), to 
ensure that such persons are legitimate entities 
and are able to perform their obligations to con-
sumers. Such requirements may include back-
ground checks for principals, officers, directors, 
or key personnel and bonding or other appro-
priate financial requirements. 
(E) CONSULTATION
WITH
STATE
AGEN-
CIES.—In developing and implementing require-
ments under this paragraph, the Bureau shall 
consult with State agencies regarding require-
ments or systems (including coordinated or com-
1271 
† HR 4173 EAS 
bined systems for registration), where appro-
priate. 
(c) ENFORCEMENT AUTHORITY.— 
(1) THE BUREAU TO HAVE ENFORCEMENT AU-
THORITY.—Except as provided in paragraph (3) and 
section 1061(b)(5), with respect to any person de-
scribed in subsection (a)(1), to the extent that Federal 
law authorizes the Bureau and another Federal agen-
cy to enforce Federal consumer financial law, the Bu-
reau 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 pro-
ceeding, 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 en-
forcement actions by each agency regarding the 
offering or provision of consumer financial prod-
ucts or services by any covered person that is de-
1273 
† HR 4173 EAS 
(II) file petitions for appeal in 
such actions. 
(C) AGREEMENT TERMS.—The terms of any 
agreement negotiated under subparagraph (A) 
may modify or supersede the provisions of sub-
paragraph (B). 
(D) DEADLINE.—The agencies shall reach 
the agreement required under subparagraph (A) 
not later than 6 months after the designated 
transfer date. 
(d) EXCLUSIVE RULEMAKING AND EXAMINATION AU-
THORITY.—Notwithstanding any other provision of Federal 
law and except as provided in section 1061(b)(5), to the 
extent that Federal law authorizes the Bureau and another 
Federal agency to issue regulations or guidance, conduct ex-
aminations, or require reports from a person described in 
subsection (a)(1) under such 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, issue guidance, conduct exami-
nations, 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 per-
son described in subsection (a)(1) shall be subject to the au-
1274 
† HR 4173 EAS 
thority of the Bureau under this section, to the same extent 
as if such service provider were engaged in a service rela-
tionship 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 coordi-
nate with the appropriate prudential regulator, as applica-
ble. 
(f) PRESERVATION OF FARM CREDIT ADMINISTRATION 
AUTHORITY.—No provision of this title may be construed 
as modifying, limiting, or otherwise affecting the authority 
of the Farm Credit Administration. 
SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS 
ASSOCIATIONS, AND CREDIT UNIONS. 
(a) SCOPE OF COVERAGE.— 
(1) APPLICABILITY.—This section shall apply to 
any covered person that is— 
(A) an insured depository institution with 
total assets of more than $10,000,000,000 and 
any affiliate thereof; or 
(B) an insured credit union with total as-
sets of more than $10,000,000,000 and any affil-
iate thereof.
1275 
† HR 4173 EAS 
(2) RULE OF CONSTRUCTION.—For purposes of 
determining total assets under this section and section 
1026, the Bureau shall rely on the same regulations 
and interim methodologies specified in section 312(e). 
(b) SUPERVISION.— 
(1) IN GENERAL.—The Bureau shall require re-
ports and conduct examinations on a periodic basis 
of persons described in subsection (a) for purposes 
of— 
(A) assessing compliance with the require-
ments of Federal consumer financial laws; 
(B) obtaining information about the activi-
ties and compliance systems or procedures of 
such persons; and 
(C) detecting and assessing 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 establishing their respective 
schedules for examining such persons described in 
subsection (a) and requirements regarding reports to 
be submitted by such persons.
1276 
† HR 4173 EAS 
(3) USE OF EXISTING REPORTS.—The Bureau 
shall, to the fullest extent possible, use— 
(A) reports pertaining to a person described 
in subsection (a) that have been provided or re-
quired to have been provided to a Federal or 
State agency; and 
(B) information that has been reported pub-
licly. 
(4) PRESERVATION OF AUTHORITY.—Nothing in 
this title may be construed as limiting the authority 
of the Director to require reports from a person de-
scribed in subsection (a), as permitted under para-
graph (1), regarding information owned or under the 
control of such person, regardless of whether such in-
formation is maintained, stored, or processed by an-
other person. 
(5) REPORTS OF TAX LAW NONCOMPLIANCE.— 
The Bureau shall provide the Commissioner of Inter-
nal Revenue with any report of examination or re-
lated information identifying possible tax law non-
compliance. 
(c) PRIMARY ENFORCEMENT AUTHORITY.— 
(1) THE BUREAU TO HAVE PRIMARY ENFORCE-
MENT AUTHORITY.—To the extent that the Bureau 
and another Federal agency are authorized to enforce
1277 
† HR 4173 EAS 
a Federal consumer financial law, the Bureau shall 
have primary authority to enforce that Federal con-
sumer financial law with respect to any person de-
scribed 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 rec-
ommend, 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 pro-
ceeding, the other agency referred to in paragraph (2) 
may initiate an enforcement proceeding, as permitted 
by the subject provision of Federal law. 
(d) SERVICE PROVIDERS.—A service provider to a per-
son described in subsection (a) shall be subject to the author-
ity 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
1278 
† HR 4173 EAS 
U.S.C. 1867(c). In conducting any examination or requir-
ing any report from a service provider subject to this sub-
section, 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 deposi-
tory institution, insured credit union, or other cov-
ered person described in subsection (a) that is super-
vised by the prudential regulator and the Bureau, re-
spectively— 
(A) coordinate the scheduling of examina-
tions of the insured depository institution, in-
sured credit union, or other covered person de-
scribed in subsection (a); 
(B) conduct simultaneous examinations of 
each insured depository institution, insured cred-
it union, or other covered person described in 
subsection (a), unless such institution requests 
examinations to be conducted separately; 
(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
1279 
† HR 4173 EAS 
of receipt) to comment on the draft report before 
such report is made final; and 
(D) prior to issuing a final report of exam-
ination or taking supervisory action, take into 
consideration concerns, if any, raised in the 
comments made by the other agency. 
(2) COORDINATION WITH STATE BANK SUPER-
VISORS.—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 
determinations of the Bureau and a prudential 
regulator (in this section referred to collectively 
as the ‘‘agencies’’) are conflicting, an insured de-
pository 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 super-
visory action. 
(B) JOINT STATEMENT.—The agencies shall 
provide a joint statement under subparagraph 
(A), not later than 30 days after the date of re-
ceipt of the request of the insured depository in-
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† HR 4173 EAS 
stitution, credit union, or covered person de-
scribed in subsection (a). 
(4) APPEALS TO GOVERNING PANEL.— 
(A) IN GENERAL.—If the agencies do not re-
solve the conflict or issue a joint statement re-
quired by subparagraph (B), or if either of the 
agencies takes or attempts to take any super-
visory action relating to the request for the joint 
statement without the consent of the other agen-
cy, an insured depository institution, insured 
credit union, or other covered person described in 
subsection (a) may institute an appeal to a gov-
erning panel, as provided in this subsection, not 
later than 30 days after the expiration of the pe-
riod during which a joint statement is required 
to be filed under paragraph (3)(B). 
(B) COMPOSITION OF GOVERNING PANEL.— 
The governing panel for an appeal under this 
paragraph shall be composed of— 
(i) a representative from the Bureau 
and a representative of the prudential regu-
lator, both of whom— 
(I) have not participated in the 
material supervisory determinations 
under appeal; and
1281 
† HR 4173 EAS 
(II) do not directly or indirectly 
report to the person who participated 
materially in the supervisory deter-
minations under appeal; and 
(ii) one individual representative, to be 
determined on a rotating basis, from among 
the Board of Governors, the Corporation, 
the National Credit Union Administration, 
and the Office of the Comptroller of the Cur-
rency, 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 per-
son described in subsection (a)— 
(I) shall include in its appeal all 
the facts and legal arguments per-
taining to the matter; and 
(II) may, through counsel, em-
ployees, or representatives, appear be-
fore the governing panel in person or 
by telephone; and 
(ii) the governing panel—
1282 
† HR 4173 EAS 
(I) may request the insured depos-
itory institution, insured credit union, 
or other covered person described in 
subsection (a), the Bureau, or the pru-
dential regulator to produce additional 
information relevant to the appeal; 
and 
(II) by a majority vote of its 
members, shall provide a final deter-
mination, 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 DETERMINA-
TIONS.—A governing panel shall publish all in-
formation contained in a determination by the 
governing panel, with appropriate redactions of 
information that would be subject to an exemp-
tion from disclosure under section 552 of title 5, 
United States Code.
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† HR 4173 EAS 
(E) PROHIBITION AGAINST RETALIATION.— 
The Bureau and the prudential regulators shall 
prescribe rules to provide safeguards from retal-
iation against the insured depository institution, 
insured credit union, or other covered person de-
scribed in subsection (a) instituting an appeal 
under this paragraph, as well as their officers 
and employees. 
(F) LIMITATION.—The process provided in 
this paragraph shall not apply to a determina-
tion by a prudential regulator to appoint a con-
servator or receiver for an insured depository in-
stitution 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 Fed-
eral Deposit Insurance 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.—Noth-
ing in this section shall modify or limit the au-
thority of the Bureau to interpret, or take en-
forcement action under, any Federal consumer 
financial law.
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† HR 4173 EAS 
SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND 
CREDIT UNIONS. 
(a) SCOPE OF COVERAGE.—This section shall apply 
to any covered 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 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 subsection (a) that have been provided or re-
quired to have been provided to a Federal or 
State agency; and 
(B) information that has been reported pub-
licly. 
(2) PRESERVATION OF AUTHORITY.—Nothing in 
this subsection may be construed as limiting the au-
thority of the Director from requiring from a person 
described in subsection (a), as permitted under para-
1285 
† HR 4173 EAS 
graph (1), information owned or under the control of 
such person, regardless of whether such information is 
maintained, stored, or processed by another person. 
(3) REPORTS OF TAX LAW NONCOMPLIANCE.— 
The Bureau shall provide the Commissioner of Inter-
nal Revenue with any report of examination or re-
lated information identifying possible tax law non-
compliance. 
(c) EXAMINATIONS.— 
(1) IN GENERAL.—The Bureau may, at its dis-
cretion, include examiners on a sampling basis of the 
examinations performed by the prudential regulator 
of persons described in subsection (a). 
(2) AGENCY
COORDINATION.—The prudential 
regulator shall— 
(A) provide all reports, records, and docu-
mentation 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 examination process for such person; and 
(C) consider input of the Bureau concerning 
the scope of an examination, conduct of the ex-
amination, the contents of the examination re-
1286 
† HR 4173 EAS 
port, the designation of matters requiring atten-
tion, and examination ratings. 
(d) ENFORCEMENT.— 
(1) IN GENERAL.—Except for requiring reports 
under subsection (b), the prudential regulator shall 
have exclusive authority to enforce compliance with 
respect to a person described in subsection (a). 
(2) COORDINATION
WITH
PRUDENTIAL
REGU-
LATOR.— 
(A) REFERRAL.—When the Bureau has rea-
son to believe that a person described in sub-
section (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 rec-
ommendation under subparagraph (A), the pru-
dential regulator shall provide a written re-
sponse to the Bureau not later than 60 days 
thereafter. 
(e) SERVICE PROVIDERS.—A service provider to a sub-
stantial number of persons described in subsection (a) shall 
be subject to the authority of the Bureau under section 1025 
to the same extent as if the Bureau were an appropriate 
Federal bank agency under section 7(c) of the Bank Service
1287 
† HR 4173 EAS 
Company Act (12 U.S.C. 1867(c)). When conducting any 
examination or requiring any report from a service pro-
vider subject to this subsection, the Bureau shall coordinate 
with the appropriate prudential regulator. 
SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU; 
PRESERVATION OF AUTHORITIES. 
(a) EXCLUSION FOR MERCHANTS, RETAILERS, AND 
OTHER SELLERS
OF NONFINANCIAL GOODS
OR SERV-
ICES.— 
(1) SALE
OR
BROKERAGE
OF
NONFINANCIAL 
GOOD OR SERVICE.—The Bureau may not exercise 
any rulemaking, supervisory, enforcement or other 
authority under this title with respect to a person 
who is a merchant, retailer, or seller of any non-
financial good or service and is engaged in the sale 
or brokerage of such nonfinancial good or service, ex-
cept to the extent that such person is engaged in offer-
ing or providing any consumer financial product or 
service, or is otherwise subject to any enumerated con-
sumer law or any law for which authorities are 
transferred under subtitle F or H. 
(2) OFFERING OR PROVISION OF CERTAIN CON-
SUMER FINANCIAL PRODUCTS OR SERVICES IN CON-
NECTION WITH THE SALE OR BROKERAGE OF NON-
FINANCIAL GOOD OR SERVICE.—
1288 
† HR 4173 EAS 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), and subject to subparagraph 
(C), the Bureau may not exercise any rule-
making, supervisory, enforcement, or other au-
thority under this title with respect to a mer-
chant, retailer, or seller of nonfinancial goods or 
services, but only to the extent that such per-
son— 
(i) extends credit directly to a con-
sumer, in a case in which the good or serv-
ice being provided is not itself a consumer 
financial product or service (other than 
credit described in this subparagraph), ex-
clusively 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.
1289 
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(B) 
APPLICABILITY.—Subparagraph 
(A) 
does not apply to any credit transaction or col-
lection of debt, other than as described in sub-
paragraph (C)(i), arising from a transaction de-
scribed in subparagraph (A)— 
(i) in which the merchant, retailer, or 
seller of nonfinancial goods or services as-
signs, sells or otherwise conveys to another 
person such debt owed by the consumer (ex-
cept for a sale of debt that is delinquent or 
otherwise in default, as described in sub-
paragraph (A)(iii)); 
(ii) in which the credit extended ex-
ceeds the market value of the nonfinancial 
good or service provided, or the Bureau oth-
erwise finds that the sale of the non-
financial good or service is done as a sub-
terfuge, so as to evade or circumvent the 
provisions of this title; or 
(iii) in which the merchant, retailer, or 
seller of nonfinancial goods or services regu-
larly extends credit and the credit is subject 
to a finance charge. 
(C) LIMITATIONS.—
1290 
† HR 4173 EAS 
(i) 
IN
GENERAL.—Notwithstanding 
subparagraph (B), and except as provided 
in clause (ii), the Bureau may not exercise 
any rulemaking, supervisory, enforcement, 
or other authority under this title with re-
spect to a merchant, retailer, or seller of 
nonfinancial goods or services that is not 
engaged significantly in offering or pro-
viding consumer financial products or serv-
ices. 
(ii) EXCEPTION.—Subparagraph (A) 
and clause (i) of this subparagraph do not 
apply to any merchant, retailer, or seller of 
nonfinancial goods or services, to the extent 
that such person is subject to any enumer-
ated consumer law or any law for which 
authorities are transferred under subtitle F 
or H. 
(D) RULES.— 
(i) AUTHORITY
OF
OTHER
AGEN-
CIES.—No provision of this title shall be 
construed as modifying, limiting, or super-
seding the supervisory or enforcement au-
thority of the Federal Trade Commission or 
any other agency (other than the Bureau)
1291 
† HR 4173 EAS 
with respect to credit extended, or the collec-
tion of debt arising from such extension, di-
rectly by a merchant or retailer to a con-
sumer exclusively for the purpose of ena-
bling that consumer to purchase non-
financial goods or services 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 signifi-
cantly in offering or providing consumer fi-
nancial products or services under subpara-
graph (C)(i), if such person— 
(I) only extends credit for the sale 
of nonfinancial 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 delinquent or otherwise in 
default); and 
(III) meets the relevant industry 
size threshold to be a small business
1292 
† HR 4173 EAS 
concern, based on annual receipts, pur-
suant to section 3 of the Small Busi-
ness Act (15 U.S.C. 632) and the im-
plementing rules thereunder. 
(iii) INITIAL YEAR.—A merchant, re-
tailer, 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 receipts of that business concern 
reasonably are expected to meet that size 
threshold. 
(E) EXCEPTION
FROM
STATE
ENFORCE-
MENT.—To the extent that the Bureau may not 
exercise authority under this subsection with re-
spect to a merchant, retailer, or seller of non-
financial 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 subsection 1042(a), with respect to an ac-
tivity described in any of clauses (i) through 
(iii) of subparagraph (A) by such merchant, re-
tailer, or seller of nonfinancial goods or services.
1293 
† HR 4173 EAS 
(b) EXCLUSION FOR REAL ESTATE BROKERAGE AC-
TIVITIES.— 
(1) REAL ESTATE BROKERAGE ACTIVITIES EX-
CLUDED.—Without limiting subsection (a), and ex-
cept as permitted in paragraph (2), the Bureau may 
not exercise any rulemaking, supervisory, enforce-
ment, or other authority under this title with respect 
to a person that is licensed or registered as a real es-
tate 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, purchase, lease, rental, or exchange of real 
property; 
(C) negotiates, on behalf of any party, any 
portion of a contract relating to the sale, pur-
chase, 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).
1294 
† HR 4173 EAS 
(2) DESCRIPTION
OF
ACTIVITIES.—Paragraph 
(1) shall not apply to any person to the extent that 
such person is engaged in the offering or provision of 
any consumer financial product or service or is other-
wise subject to any enumerated consumer law or any 
law for which authorities are transferred under sub-
title F or H. 
(c) EXCLUSION FOR MANUFACTURED HOME RETAIL-
ERS AND MODULAR HOME RETAILERS.— 
(1) IN GENERAL.—The Director may not exercise 
any rulemaking, supervisory, enforcement, or other 
authority over a person to the extent that— 
(A) such person is not described in para-
graph (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 con-
sumer of a manufactured home or modular 
home, by negotiating the purchase price or 
terms of the sales contract (other than pro-
viding financing with respect to such trans-
action); or
1295 
† HR 4173 EAS 
(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 sub-
section, the following 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 build-
ing codes where the house will be located, and 
where such modules are transported to the build-
ing site, installed on foundations, and completed. 
(d) EXCLUSION FOR ACCOUNTANTS AND TAX PRE-
PARERS.—
1296 
† HR 4173 EAS 
(1) IN GENERAL.—Except as permitted in para-
graph (2), the Bureau may not exercise any rule-
making, supervisory, enforcement, or other authority 
over— 
(A) any person that is a certified public ac-
countant, 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 inter-
est with respect to a person described in this sub-
paragraph, when such person is performing or 
offering to perform— 
(i) customary and usual accounting 
activities, including the provision of ac-
counting, tax, advisory, or other services 
that are subject to the regulatory authority 
of a State board of accountancy or a Fed-
eral authority; or 
(ii) other services that are incidental to 
such customary and usual accounting ac-
tivities, to the extent that such incidental 
services are not offered or provided— 
(I) by the person separate and 
apart from such customary and usual 
accounting activities; or
1297 
† HR 4173 EAS 
(II) to consumers who are not re-
ceiving such customary and usual ac-
counting activities; or 
(B) any person, other than a person de-
scribed in subparagraph (A) that performs in-
come 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 cus-
tomary and usual accounting activity described 
in paragraph (1)(A) or incidental thereto but 
which is the offering or provision of any con-
sumer financial product or service, except to the 
extent that a person described in paragraph 
(1)(A) is engaged in an activity which is a cus-
tomary and usual accounting activity described 
in paragraph (1)(A), or incidental thereto. 
(B) NOT
A
CUSTOMARY
AND
USUAL
AC-
COUNTING ACTIVITY.—For purposes of this sub-
section, extending or brokering credit is not a 
customary and usual accounting activity, or in-
cidental thereto.
1298 
† HR 4173 EAS 
(C) RULE
OF
CONSTRUCTION.—For pur-
poses of subparagraphs (A) and (B), a person de-
scribed in paragraph (1)(A) shall not be deemed 
to be extending credit, if such person is only ex-
tending 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 para-
graph (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 ATTORNEYS.— 
(1) IN GENERAL.—The Bureau may not exercise 
any authority to conduct examinations of an attorney 
licensed by a State, to the extent that the attorney is 
engaged in the practice of law under the laws of such 
State.
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† HR 4173 EAS 
(2) EXCEPTION
FOR
ENUMERATED
CONSUMER 
LAWS AND TRANSFERRED AUTHORITIES.—Paragraph 
(1) shall not apply to an attorney who is engaged in 
the offering or provision of any consumer financial 
product or service, or is otherwise subject to any enu-
merated consumer law or any law for which authori-
ties are transferred under subtitle F or H. 
(f) EXCLUSION FOR PERSONS REGULATED BY A STATE 
INSURANCE REGULATOR.— 
(1) IN GENERAL.—No provision of this title shall 
be construed 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 subject to any enu-
merated consumer law or any law for which authori-
ties are transferred under subtitle F or H.
1300 
† HR 4173 EAS 
(g) EXCLUSION FOR EMPLOYEE BENEFIT AND COM-
PENSATION 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 con-
strued as altering, amending, or affecting the author-
ity 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 OFFER-
ING
OR
PROVISION
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 prod-
uct or service solely because such person is a specified 
plan or arrangement, or is engaged in the activity of 
establishing or maintaining, for the benefit of employ-
ees of such person (or for members of an employee or-
ganization), any specified plan or arrangement. 
(3) LIMITATION ON BUREAU AUTHORITY.— 
(A) IN
GENERAL.—Except as provided 
under subparagraphs (B) and (C), the Bureau 
may not exercise any rulemaking or enforcement
1301 
† HR 4173 EAS 
authority with respect to products or services 
that relate to any specified plan or arrangement. 
(B) BUREAU ACTION ONLY PURSUANT TO 
AGENCY REQUEST.—The Secretary and the Sec-
retary of Labor may jointly issue a written re-
quest to 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 ar-
rangement. Subject to a request made under this 
subparagraph, the Bureau may exercise rule-
making authority, and may act to enforce a rule 
prescribed pursuant to such request, in accord-
ance with the provisions of this title. A request 
made by the Secretary and the Secretary of 
Labor under this subparagraph shall describe the 
basis for, and scope of, appropriate consumer 
protection standards to be implemented under 
this title with respect to the provision of services 
relating to any specified plan or arrangement. 
(C) DESCRIPTION OF PRODUCTS OR SERV-
ICES.—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
1302 
† HR 4173 EAS 
authorities are transferred under subtitle F or 
H, subparagraph (A) shall not apply with re-
spect to that law. 
(4) SPECIFIED
PLAN
OR
ARRANGEMENT.—For 
purposes of this subsection, the term ‘‘specified plan 
or arrangement’’ means any plan, account, or ar-
rangement 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. 
(h) PERSONS REGULATED BY A STATE SECURITIES 
COMMISSION.— 
(1) IN GENERAL.—No provision of this title shall 
be construed as altering, amending, or affecting the 
authority of any securities commission (or any agen-
cy 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
1303 
† HR 4173 EAS 
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 ca-
pacity. 
(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 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 construed 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.—Not-
withstanding paragraph (1), the Commission shall 
consult and coordinate, where feasible, with the Bu-
reau with respect to any rule (including any advance
1310 
† HR 4173 EAS 
(b) RULEMAKING.—The Bureau may prescribe rules 
applicable to a covered person or service provider identi-
fying as unlawful unfair, deceptive, or abusive acts or prac-
tices in connection with any transaction with a consumer 
for a consumer financial product or service, or the offering 
of a consumer financial product or service. Rules under this 
section may include requirements for the purpose of pre-
venting such acts or practices. 
(c) UNFAIRNESS.— 
(1) IN GENERAL.—The Bureau shall have no au-
thority under this section to declare an act or practice 
in connection with a transaction with a consumer for 
a consumer financial product or service, or the offer-
ing of a consumer financial product or service, to be 
unlawful on the grounds that such act or practice is 
unfair, unless the Bureau has a reasonable basis to 
conclude that— 
(A) the act or practice causes or is likely to 
cause substantial injury to consumers which is 
not reasonably avoidable by consumers; and 
(B) such substantial injury is not out-
weighed by countervailing benefits to consumers 
or to competition. 
(2) CONSIDERATION
OF
PUBLIC
POLICIES.—In 
determining whether an act or practice is unfair, the