,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #afbg  ,,in ,,the ,,house ,,of  
,,representatives  ,april #ah1 #bjac    
,ms4 ,waters 7for herself and ,mr4      
,delaney7 introduced the following bill2
 which was referred to the ,committee on
 ,financial ,services  ,a ,,bill  ,to   
amend the ,investment ,advisers ,act of 
#aidj to require certain investment     
advisers to pay fees to help cover the  
costs of inspecting and examining       
investment advisers under such ,act4    
#a4 ,short title ,this ,act may be cited
 as the ,investment ,adviser            
,examination ,improvement ,act of #bjac4
  #b4 ,sense of ,congress ,it is the    
sense of the ,congress that the         
,securities and ,exchange ,commission   
should increase the number and frequency
 of examinations of investment advisers4
  #c4 ,inspection and examination fees  
,section #bjd of the ,investment        
,advisers ,act of #aidj 7#ae ,u4,s4,c4  
#hj;b-#d7 is amended by adding at the   
end the following new subsection  7e7   

,inspection and examination fees  7#a7  
,in general ,the ,commission shall      
collect an annual fee from investment   
advisers that are subject to inspection 
or examination by the ,commission under 
this title to defray the cost of such   
inspections and examinations4  7#b7     
,exemptions for certain ,state-regulated
 investment advisers ,no fees shall be  
collected under this subsection from any
 investment adviser that is prohibited  
from registering with the ,commission   
under section #bjc by reason of section 
#bjc;,a4  7#c7 ,fee amounts  7,a7       
,amount to be collected  7i7 ,in general
 ,the ,commission shall seek to ensure  
that the aggregate amount of fees       
collected under this subsection with    
respect to a specific fiscal year are   
equal to the estimated cost of the      
,commission in carrying out additional  
inspections and examinations for such   
fiscal year4  7ii7 ,additional          
inspections and examinations defined    
,for purposes of this subparagraph and  

with respect to a fiscal year1 the term 
additional inspections and examinations 
means those inspections and examinations
 of investment advisers under this title
 for such fiscal year that exceed the   
number of inspections and examinations  
of investment advisers under this title 
conducted during fiscal year #bjab4     
7,b7 ,fee calculation formula ,the      
,commission shall establish by          
rulemaking a formula for determining the
 fee amount to be assessed against      
individual investment advisers1 which   
shall take into account the following   
factors3  7i7 ,the anticipated costs of 
conducting inspections and examinations 
of investment advisers under this title1
 including the anticipated frequency of 
such inspections and examinations4  7ii7
 ,the investment adviser's size1        
including the assets under management of
 the investment adviser4  7iii7 ,the    
number and type of clients of the       
investment adviser1 and the extent to   
which the adviser's clients pay other   

fees established by the ,commission1    
including registration and transaction  
fees4  7iv7 ,such other objective       
factors1 such as risk characteristics1  
as the ,commission determines to be     
appropriate4  7,c7 ,adjustment of       
formula ,prior to the end of each fiscal
 year1 the ,commission shall review the 
fee calculation formula and1 if1 after  
allowing for a period of public comment1
 the ,commission determines that the    
formula needs to be revised1 the        
,commission shall revise such formula   
before fees are assessed for the        
following fiscal year4  7#d7 ,public    
disclosures ,the ,commission shall make 
the following information publicly      
available1 including on the ,web site of
 the ,commission3  7,a7 ,the formula    
used to determine the fee amount to be  
assessed against individual investment  
advisers1 and any adjustment made to    
such formula4  7,b7 ,the factors used to
 determine such formula1 including any  
additional objective factors used by the

 ,commission pursuant to paragraph      
7#c77;,b77iv74  7#e7 ,audit  7,a7 ,in   
general ,the ,comptroller ,general of   
the ,united ,states shall1 every #b     
years1 conduct an audit of the use of   
the fees collected by the ,commission   
under this subsection1 the reviews of   
the formula used to calculate such fees1
 and any adjustments made by the        
,commission to such formula4  7,b7      
,report ,after conducting each audit    
required under subparagraph 7,a71 the   
,comptroller ,general shall issue a     
report on such audit to the ,committee  
on ,financial ,services of the ,house of
 ,representatives and the ,committee on 
,banking1 ,housing1 and ,urban ,affairs 
of the ,senate4  7#f7 ,treatment of fees
  7,a7 ,in general ,funds derived from  
fees assessed under this subsection     
shall be available to the ,commission1  
without further appropriation or fiscal 
year limitation1 to pay any costs       
associated with inspecting and examining
 investment advisers that are subject to

 inspection and examination under this  
title4  7,b7 ,funds not public funds    
,funds derived from fees assessed under 
this subsection shall not be construed  
to be ,government or public funds or    
appropriated money4 ,notwithstanding any
 other provision of law1 funds derived  
from fees assessed under this subsection
 shall not be subject to apportionment  
for the purpose of chapter #ae of title 
#ca1 ,united ,states ,code1 or under any
 other authority4  7,c7 ,funds          
supplemental to other amounts ,funds    
derived from fees assessed under this   
subsection shall supplement1 and be in  
addition to1 any other amounts available
 to the ,commission1 under a regular    
appropriation or otherwise1 for the     
purpose described in subparagraph 7,a74 
4