II 118th CONGRESS 1st Session S. 2141 IN THE SENATE OF THE UNITED STATES June 22, 2023 Mr. Moran introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the Securities and Exchange Commission to extend a no-action determination relating to the provision of research services by broker-dealers, and for other purposes.

1. Short title This Act may be cited as the Increasing Access to Adviser Information Act . 2. Extension of no-action determination; study (a) Findings Congress finds the following: (1) In 2017, staff of the Securities and Exchange Commission (referred to in this section as the Commission ) first granted temporary no-action relief regarding compliance with the provisions related to research in the Markets in Financial Instruments Directive II (commonly referred to as MiFID II ) and related implementing rules and regulations, before the implementation of European rules designed to protect European investors from excessive costs and conflicts of interest. (2) Staff of the Commission did not engage in any meaningful cost-benefit analysis of the issues raised by the no-action relief described in paragraph (1) either before or after the granting of that relief. (3) In 2019, staff of the Commission revised and extended the temporary no-action relief described in paragraph (1), again without any meaningful cost-benefit analysis of the issues raised by the no-action relief either before or after the granting of that relief. (4) As of the date of enactment of this Act, there are approximately 15,300 registered investment advisers, including affiliates that provide the vast majority of investment research. (5) The Commission has received complaints from investors and investor advocacy groups expressing concerns with the no-action relief described in paragraph (1), as it exists on the date of enactment of this Act. (6) The Commission has received concerns from broker-dealers relating to the potential expiration of the no-action relief described in paragraph (1). (b) Extension of no-Action determination The Commission shall provide an additional 180-day extension of the no-action determination described in the letter sent on November 4, 2019, from the Chief Counsel’s Office of the Division of Investment Management of the Commission to the Securities Industry and Financial Markets Association, entitled Investment Advisers Act of 1940—Section 202(a)(11) (referred to in this section as the no-action determination ), set to expire on July 3, 2023. (c) Study required (1) In general After the announcement of the extension, pursuant to subsection (b), of the expiration date of the no-action determination, the Commission shall— (A) after providing notice and the opportunity for comment, conduct a study of the impact of allowing the no-action determination to expire or of maintaining the no-action determination; and (B) in carrying out the study required under subparagraph (A), give due regard to any comments received under that subparagraph. (2) Contents The study required under paragraph (1) shall include potential impacts on the research market for smaller issuers, including the following: (A) The availability of that research, including— (i) the number and types of firms that provide that research; (ii) the volume of that research over time; and (iii) competition in the research market. (B) Any unique challenges faced by minority-owned, women-owned, or veteran-owned small issuers in obtaining research coverage. (C) The impact on the availability of research coverage for small issuers due to rules of the Commission. (D) A cost-benefit analysis of regulatory options that will support research coverage of small entities and increase transparency in the cost of research provided by broker-dealers. (E) Impacts of the no-action determination on— (i) investors in— (I) registered investment companies and exempt investment funds; (II) pension funds; and (III) endowments; (ii) other asset owners; (iii) investment advisers; (iv) broker-dealers that provide both investment research and trading services; (v) independent investment advisers that do not provide trading services; (vi) broker-dealers that do not provide investment research; and (vii) other market participants, including issuers of securities. (F) Potential impacts of the expiration of the no-action determination on the parties described in subparagraph (E). (3) Report Not later than 18 months after the date of enactment of this Act, the Commission, or delegated staff of the Commission, shall submit 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 containing the findings and conclusions from the study conducted under this subsection, including findings relating to the expiration of the no-action determination.