Retail Investor Protection Act

Bill: 114-hr-1090
Sponsor: Rep. Wagner, Ann [R-MO-2]
Introduced: 2015-02-25 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures
Banking and financial institutions regulation
Congressional oversight
Department of Labor
Employee benefits and pensions
Financial services and investments
Government information and archives
Securities and Exchange Commission (SEC)

Summary:
action_date: 2015-02-25
text: 

Retail Investor Protection Act

 
 Prohibits the Secretary of Labor from prescribing any regulation under the Employee Retirement Income Security Act of 1974 (ERISA) defining the circumstances under which an individual is considered a fiduciary until 60 days after the Securities and Exchange Commission (SEC) issues a final rule governing standards of conduct for brokers and dealers under specified law.
 
Amends the Securities Exchange Act of 1934 to prohibit the SEC from promulgating a rule establishing an investment advisor standard of conduct as the standard of conduct of brokers and dealers before it reports to certain congressional committees whether:
 
 
retail investors and other customers are being harmed due to brokers or dealers operating under different standards of conduct than those applicable to investment advisors under the Investment Advisers Act of 1940;
 
alternative remedies will reduce any confusion or harm to retail investors due to brokers or dealers operating under such different standards of conduct;
 
adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact their commissions and the availability of proprietary products offered by brokers and dealers, as well as the ability of brokers and dealers to engage in principal transactions with customers; and
 
adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact retail investor access to personalized, cost-effective investment advice and recommendations. 
 
 
Requires the SEC: (1) to publish in the Federal Register formal findings that such rule would reduce retail customer confusion or harm due to standards of conduct applicable to brokers, dealers, and investment advisors; and (2) in proposing rules to consider the differences in the registration, supervision, and examination requirements applicable to brokers, dealers, and investment advisors. 

action_date: 2015-10-22
text: 
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
 

Retail Investor Protection Act

 
 (Sec. 2) Prohibits the Secretary of Labor from prescribing any regulation under the Employee Retirement Income Security Act of 1974 (ERISA) defining the circumstances under which an individual is considered a fiduciary until 60 days after the Securities and Exchange Commission (SEC) issues a final rule governing standards of conduct for brokers and dealers under specified law.
 
(Sec. 3) Amends the Securities Exchange Act of 1934 to prohibit the SEC from promulgating a rule establishing an investment advisor standard of conduct as the standard of conduct of brokers and dealers before it reports to certain congressional committees whether:
 
 
retail investors and other customers are being harmed due to brokers or dealers operating under different standards of conduct than those applicable to investment advisors under the Investment Advisers Act of 1940;
 
alternative remedies will reduce any confusion or harm to retail investors due to brokers or dealers operating under such different standards of conduct;
 
adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact their commissions and the availability of proprietary products offered by brokers and dealers, as well as the ability of brokers and dealers to engage in principal transactions with customers; and
 
adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact retail investor access to personalized, cost-effective investment advice and recommendations. 
 
 
Requires the SEC: (1) to publish in the Federal Register formal findings that such rule would reduce retail customer confusion or harm due to standards of conduct applicable to brokers, dealers, and investment advisors; and (2) in proposing rules to consider the differences in the registration, supervision, and examination requirements applicable to brokers, dealers, and investment advisors.

action_date: 2015-10-27
text: 
(This measure has not been amended since it was introduced. The expanded summary of the House reported version is repeated here.)
 

Retail Investor Protection Act

 
 (Sec. 2) Prohibits the Secretary of Labor from prescribing any regulation under the Employee Retirement Income Security Act of 1974 (ERISA) defining the circumstances under which an individual is considered a fiduciary until 60 days after the Securities and Exchange Commission (SEC) issues a final rule governing standards of conduct for brokers and dealers under specified law.
 
(Sec. 3) Amends the Securities Exchange Act of 1934 to prohibit the SEC from promulgating a rule establishing an investment advisor standard of conduct as the standard of conduct of brokers and dealers before it reports to certain congressional committees whether:
 
 
retail investors and other customers are being harmed due to brokers or dealers operating under different standards of conduct than those applicable to investment advisors under the Investment Advisers Act of 1940;
 
alternative remedies will reduce any confusion or harm to retail investors due to brokers or dealers operating under such different standards of conduct;
 
adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact their commissions and the availability of proprietary products offered by brokers and dealers, as well as the ability of brokers and dealers to engage in principal transactions with customers; and
 
adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact retail investor access to personalized, cost-effective investment advice and recommendations. 
 
 
Requires the SEC: (1) to publish in the Federal Register formal findings that such rule would reduce retail customer confusion or harm due to standards of conduct applicable to brokers, dealers, and investment advisors; and (2) in proposing rules to consider the differences in the registration, supervision, and examination requirements applicable to brokers, dealers, and investment advisors.


Legislative actions:
action_date: 2015-10-28
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2015-10-27
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2015-10-27
text: On passage Passed by the Yeas and Nays: 245 - 186 (Roll no. 575). (text: CR H7231)
action_date: 2015-10-27
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 245 - 186 (Roll no. 575).(text: CR H7231)
action_date: 2015-10-27
text: DEBATE - Pursuant to the provisions of H. Res. 491, the House proceeded with 10 minutes of debate on the Lynch amendment no. 1.
action_date: 2015-10-27
text: DEBATE - The House proceeded with one hour of debate on H.R. 1090.
action_date: 2015-10-27
text: Rule provides for consideration of H.R. 1090 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. An amendment in the nature of a substitute consisting of the text of Rules Committee Print 114-31 shall be considered as adopted. The further amendment printed in the report accompanying the resolution shall be considered as read, shall be debatable for 10 minutes, and shall not be subject to a demand for division of the question.
action_date: 2015-10-27
text: Considered under the provisions of rule H. Res. 491. (consideration: CR H7231-7243)
action_date: 2015-10-27
text: Rule H. Res. 491 passed House.
action_date: 2015-10-26
text: Rules Committee Resolution H. Res. 491 Reported to House. Rule provides for consideration of H.R. 1090 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. An amendment in the nature of a substitute consisting of the text of Rules Committee Print 114-31 shall be considered as adopted. The further amendment printed in the report accompanying the resolution shall be considered as read, shall be debatable for 10 minutes, and shall not be subject to a demand for division of the question.
action_date: 2015-10-22
text: Placed on the Union Calendar, Calendar No. 230.
action_date: 2015-10-22
text: Committee on Education and the Workforce discharged.
action_date: 2015-10-22
text: Committee on Education and the Workforce discharged.
action_date: 2015-10-22
text: Reported by the Committee on Financial Services. H. Rept. 114-304, Part I.
action_date: 2015-10-22
text: Reported by the Committee on Financial Services. H. Rept. 114-304, Part I.
action_date: 2015-09-30
text: Ordered to be Reported by the Yeas and Nays: 34 - 25.
action_date: 2015-09-30
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-09-10
text: Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Referral.
action_date: 2015-09-10
text: Hearings Held by the Subcommittee on Oversight and Investigations Prior to Referral.
action_date: 2015-04-29
text: Referred to the Subcommittee on Health, Employment, Labor, and Pensions.
action_date: 2015-02-25
text: Referred to the Committee on Financial Services, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2015-02-25
text: Referred to the Committee on Financial Services, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2015-02-25
text: Referred to the Committee on Financial Services, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2015-02-25
text: Introduced in House
action_date: 2015-02-25
text: Introduced in House