Promoting Diverse Investment Advisers Act

Bill: 118-hr-10198
Sponsor: full_name: Rep. Beatty, Joyce [D-OH-3]
Introduced: 2024-11-21
Policy area: Finance and Financial Sector
Latest action: action_date: 2024-11-21
text: Referred to the House Committee on Financial Services.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 10198 IN THE HOUSE OF REPRESENTATIVES November 21, 2024 Mrs. Beatty introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Federal Reserve Act to require the Board of Governors of the Federal Reserve System to establish goals for the use of diverse investment advisers, brokers, and dealers in investment management agreements related to the Board of Governors unusual and exigent circumstances authority, and for other purposes.

1. Short title This Act may be cited as the Promoting Diverse Investment Advisers Act . 2. Requirements for investment management agreements Section 13(3) of the Federal Reserve Act ( 12 U.S.C. 347d(3) ) is amended by adding at the end the following: (F) Requirements for investment management agreements (i) In general With respect to any investment management agreement entered into by the Board of Governors of the Federal Reserve System with respect to any program or facility established under this paragraph, the Board of Governors shall set goals in such agreement that require investment managers, to the maximum extent possible, to utilize— (I) investment advisers and sub-advisers that are diverse individual-owned and controlled firms as intermediaries; and (II) brokers and dealers that are diverse individual-owned and controlled firms. (ii) Report The Board of Governors shall include, in the report required under subparagraph (C), a description of goals set pursuant to clause (i). (iii) Definitions For the purposes of this subparagraph: (I) Affiliated person The term affiliated person has the meaning given that term under section 2(a) of the Investment Company Act of 1940. (II) Broker The term broker has the meaning given that term under section 3 of the Securities Exchange Act of 1934. (III) Dealer The term dealer has the meaning given that term under section 3 of the Securities Exchange Act of 1934. (IV) Diverse individual-owned and controlled firm The term diverse individual-owned and controlled firm means a firm— (aa) which is at least 51 percent owned by one or more individuals who are women, minorities, or veterans; or (bb) whose management and daily business operations are— (AA) in the case of a firm the shares of which are traded on a national securities exchange, controlled by a board with a majority of members who are women, minorities, or veterans; and (BB) in the case of any other firm, at least 51 percent controlled by one or more individuals who are women, minorities, or veterans. (V) Investment adviser The term investment adviser has the meaning given the term in section 202(a)(11) of the Investment Advisers Act of 1940. (VI) Minority The term minority has the meaning given the term in section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and also includes any indigenous person in the United States or its territories. (VII) Veteran The term veteran has the meaning given the term in section 101 of title 38, United States Code. .