,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cjji  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,augu/ #b1 #bjac ,mr4 
,capuano introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,agriculture  
,a ,,bill  ,to protect inve/ors 9       
futures contracts4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,futures ,inve/or 
,protection ,act4  #b4 ,futures inve/ors
 protection fund  7a7 ,futures inve/or  
protection corporation  7#a7 ,creation &
 memb]%ip  7,a7 ,creation ,!re is       
e/abli%$ a nonpr(it corporation to be   
kn[n z ! ,futures ,inve/or ,protection  
,corporation 79 ?is ,act ref]r$ to z !  
,,fipc71 :i* %all n be an ag5cy or      
e/abli%m5t ( ! ,unit$ ,/ates ,gov]nm5t4 
7,b7 ,memb]%ip  7i7 ,memb]s ( fipc ,!   
,,fipc %all be a memb]%ip corporation ! 
memb]s ( :i* %all be all p]sons regi/]$ 
"u ! ,commodity ,ex*ange ,act ) !       
,commission z a futures commission      
m]*ant1 o!r ?an p]sons ^: pr9cipal      
bus9ess1 9 ! det]m9ation ( ! ,,fipc1    
tak+ into acc\nt bus9ess ( affiliat$    

entities1 is conduct$ outside ! ,unit$  
,/ates & its t]ritories & possessions4  
7ii7 ,commission review2 additional     
memb]s ,subp>agraphs 7,b7 & 7,c7 (      
section #c7;a77#b7 ( ,,sipa %all apply )
 respect to det]m9ations ( ! ,,fipc 9 ! 
same way ! subp>agraphs apply ) respect 
to det]m9ations ( ! ,,sipc & to brok]s &
 deal]s ref]r$ to 9 su* subp>agraph     
7,d74  7iii7 ,disclosure ,section       
#c7;a77#b77;,d7 ( ,,sipa %all apply to  
futures commission m]*ants 9 ! same way 
! section applies to brok]s & deal]s    
ref]r$ to 9 su* section4  7#b7 ,p[]s ,! 
,,fipc %all h all ! p[]s conf]r$ on !   
,,sipc4  7#c7 ,bo>d ( directors  7,a7   
,functions ,! ,,fipc %all h a ,bo>d (   
,directors :i*1 subject to ! provisions 
( ?is ,act1 %all det]m9e ! policies :i* 
%all gov]n ! op]ations ( ,,fipc4  7,b7  
,numb] & appo9tm5t ,! ,bo>d ( ,directors
 %all consi/ ( #g p]sons z foll[s3  7i7 
#a director %all be appo9t$ by !        
,secret>y ( ! ,treasury f among ! (fic]s
 & employees ( ! ,dep>tm5t ( !          

,treasury4  7ii7 #a director %all be    
appo9t$ by ! ,bo>d ( ,gov]nors ( !      
,f$]al ,res]ve ,sy/em f among ! (fic]s &
 employees ( t ,bo>d4  7iii7 #e         
directors %all be appo9t$ by !          
,presid5t1 by & ) ! advice & cons5t ( ! 
,s5ate1 z foll[s3  7,i7 #c directors    
%all be select$ f among p]sons :o are   
associat$ )1 & repres5tative ( diff]5t  
aspects (1 ! futures indu/ry1 n all (   
:om %all be f ! same geographical area (
 ! ,unit$ ,/ates4  7,,ii7 #b directors  
%all be select$ f ! g5]al public f among
 p]sons :o are n associat$ ) a futures  
commission m]*ant or a contract m>ket1  
or simil>ly associat$ ) any             
self-regulatory organization or o!r     
futures indu/ry gr\p1 & :o h n _h any   
su* association dur+ ! #b ye>s prec$+   
appo9tm5t4  7,c7 ,*airman & vice *airman
 ,! ,presid5t %all designate a ,*airman 
& ,vice ,*airman f among ^? directors   
appo9t$ "u subp>agraph 7,b77iii77,,ii74 
7,d7 ,t]ms  7i7 ,9 g5]al ,except z      
provid$ 9 clauses 7ii7 & 7iii71 ea*     

director %all be appo9t$ = a t]m ( #c   
ye>s4  7ii7 ,initially appo9t$ memb]s ,(
 ! directors fir/ appo9t$ "u subp>agraph
 7,b7--  7,i7 #b %all hold (fice = a t]m
 expir+ on ,decemb] #ca1 #bjad2  7,,ii7 
#b %all hold (fice = a t]m expir+ on    
,decemb] #ca1 #bjae2 &  7,,iii7 #c %all 
hold (fice = a t]m expir+ on ,decemb]   
#ca1 #bjaf1  z designat$ by ! ,presid5t 
at ! "t !y take (fice4 ,! designation   
%all be made 9 a mann] :i* w assure t no
 #b p]sons appo9t$ "u ! au?ority ( !    
same subclause ( subp>agraph 7,b77iii7  
%all h t]ms :i* expire simultane\sly4   
7iii7 ,vacancies ,a vacancy 9 ! ,bo>d   
%all be fill$ 9 ! same mann] z ! orig9al
 appo9tm5t 0 made4 ,any director appo9t$
 to fill a vacancy occurr+ prior to !   
expiration ( ! t]m = :i* ! pr$ecessor ( 
! director 0 appo9t$ %all be appo9t$    
only = ! rema9d] ( ! t]m4 ,a director   
may s]ve aft] ! expiration ( ! t]m = :i*
 appo9t$ until ! successor ( ! director 
has tak5 (fice4  7,e7 ,comp5sation ,all 
matt]s relat+ to comp5sation ( directors

 %all be z provid$ 9 ! bylaws ( !       
,,fipc4  7#d7 ,meet+s ( bo>d2 bylaws &  
rules ,subsections 7d7 & 7e7 ( section  
#c ( ,,sipa %all apply ) respect to !   
,,fipc & ! ,commission 9 ! same way !   
subsections apply ) respect to ! ,,sipc 
& ! ,securities & ,ex*ange ,commission4 
7b7 ,,fipc fund  7#a7 ,9 g5]al ,! ,,fipc
 %all e/abli%1 & make deposits into &   
paym5ts f1 an ,,fipc fund 79 ?is ,act   
ref]r$ to z ! fund7 9 ! same mann] 9 :i*
 ! ,,sipc has e/abli%$1 & is au?oriz$ to
 make deposits into & paym5ts f1 !      
,,sipc fund4  7#b7 ,assessm5ts ,! ,,fipc
 %all impose on its memb]s assessm5ts   
subject to ! same rules t apply to !    
imposition by ! ,,sipc ( assessm5ts on !
 memb]s ( ! ,,sipc4  7c7 ,o!r provisions
 ,sections #e ?r\gh #af ( ! ,,sipa %all 
apply ) respect to ! ,,fipc & ! memb]s1 
directors1 (fic]s1 & employees ( !      
,,fipc1 ! ,commission1 ! ,,fipc fund1   
futures commission m]*ants & _!         
affiliates1 futures contracts1 futures  
transactions1 cu/om]s1 & debtors 9 !    

same way ! sections apply ) respect to !
 ,,sipc & ! memb]s1 directors1 (fic]s1 &
 employees ( ! ,,sipc1 ! ,securities &  
,ex*ange ,commission1 ! ,,sipc fund1    
p]sons regi/]$ z brok]s or deal]s 7z    
def9$ 9 section #af7ab7 ( ! ,,sipa7 & _!
 affiliates1 securities1 securities     
transactions1 cu/om]s 7z def9$ 9 section
 #af7b7 ( ! ,,sipa71 & debtors 7z def9$ 
9 section #af7e7 ( ! ,,sipa71           
respectively4  7d7 ,def9itions ,9 ?is   
section3  7#a7 ,commission ,! t]m       
,commission means ! ,commodity ,futures 
,trad+ ,commission4  7#b7 ,contract     
m>ket ,! t]m contract m>ket means a bo>d
 ( trade designat$ z a contract m>ket "u
 ! ,commodity ,ex*ange ,act4  7#c7      
,futures contract ,! t]m futures        
contract means a contract ( sale ( a    
commodity = future deliv]y1 )9 ! mean+ (
 ! ,commodity ,ex*ange ,act4  7#d7      
,futures commission m]*ant ,! t]m       
futures commission m]*ant has ! mean+   
giv5 ! t]m 9 section #a;a7#bh7 ( !      
,commodity ,ex*ange ,act4  7#e7 ,,sipa  

,! t]m ,,sipa means ! ,security         
,inve/ors ,protection ,act ( #aigj4     
7#f7 ,,sipc ,! t]m ,,sipc means !       
,security ,inve/ors ,protection         
,corporation4  7#g7 ,,sipc fund ,! t]m  
,,sipc fund means ! fund e/abli%$ "u    
section #d7;a77#a7 ( ! ,,sipa4  #c4     
,suitability rules  7a7 ,9 g5]al ,!     
,commodity ,ex*ange ,act 7#g ,u4,s4,c4  
#a et seq47 is am5d$ by ins]t+ aft]     
section #dt ! foll[+3  #du4 ,suitability
 rules  7a7 ,9 g5]al  7#a7              
,recomm5dations mu/ be suitable = !     
cu/om] ,a futures commission m]*ant %all
 n recomm5d a transaction or inve/m5t   
/rategy involv+ a contract ( sale ( a   
commodity = future deliv]y1 unless !    
futures commission m]*ant has a         
reasonable basis to believe t !         
transaction or inve/m5t /rategy is      
suitable = ! cu/om]1 bas$ on ! in=mation
 obta9$ ?r\gh ! reasonable dilig5ce ( ! 
futures commission m]*ant to asc]ta9 !  
cu/om]'s inve/m5t pr(ile4 ,a cu/om]'s   
inve/m5t pr(ile includes1 b is n limit$ 

to1 ! cu/om]'s age1 o!r inve/m5ts1      
f9ancial situation & ne$s1 tax /atus1   
inve/m5t objectives1 inve/m5t exp]i5ce1 
inve/m5t "t horizon1 liquidity ne$s1    
risk tol]ance1 & any o!r in=mation !    
cu/om] may disclose to ! futures        
commission m]*ant 9 connection ) !      
recomm5dation4  7#b7 ,safe h>bor 9 c]ta9
 cases ,a futures commission m]*ant is  
deem$ to comply ) p>agraph 7#a7 9 ! case
 ( a cu/om] ) an in/itutional acc\nt1   
if--  7,a7 ! futures commission m]*ant  
has a reasonable basis to believe t !   
cu/om] is capable ( evaluat+ inve/m5t   
risks indep5d5tly1 bo? 9 g5]al & ) reg>d
 to p>ticul> transactions & inve/m5t    
/rategies involv+ a contract ( sale ( a 
commodity = future deliv]y2 &  7,b7 !   
cu/om] affirmatively indicates t x is   
ex]cis+ indep5d5t judgm5t 9 evaluat+ !  
recomm5dations ( ! futures commission   
m]*ant4  7b7 ,applicability ) respect to
 c]ta9 ag5ts ,if a cu/om] ) an          
in/itutional acc\nt has delegat$        
decisionmak+ au?ority to an ag5t1       

subsection 7a7 %all be appli$ ) respect 
to ! ag5t4  7c7 ,in/itutional acc\nt    
def9$ ,9 ?is section1 ! t]m in/itutional
 acc\nt means ! acc\nt (--  7#a7 a bank1
 sav+s & loan association1 insurance    
company or regi/]$ inve/m5t company2    
7#b7 an inve/m5t advis] regi/]$ ) !     
,securities & ,ex*ange ,commission "u   
section #bjc ( ! ,inve/m5t ,advis]s ,act
 or ) a ,/ate securities commission 7or 
any ag5cy or (fice p]=m+ l functions72  
or  7#c7 any o!r p]son 7:e!r a natural  
p]son1 corporation1 p>tn]%ip1 tru/ or   
o!rwise7 ) total assets ( at lea/       
#ej1jjj1jjj4  7d7 ,p5alties ,!          
,commission may impose #a or m ( !      
foll[+ sanctions on a p]son f\nd by !   
,commission to h violat$ ?is section or 
to h neglect$ or refus$ to comply ) an  
ord] issu$ by ! ,commission "u ?is      
section3  7#a7 ,c5sure4  7#b7 ,a f9e4   
7#c7 ,expulsion ( ! p]son f1 or         
revocation ( ! memb]%ip ( ! p]son 91 a  
regi/]$ entity4  7#d7 ,susp5sion = a    
def9ite p]iod or a p]iod cont+5t on !   

p]=mance ( a p>ticul> act1 or           
revocation1 ( ! regi/ration ( ! p]son "u
 ?is ,act ) ! ,commission z a futures   
commission m]*ant4  7#e7 ,susp5sion or  
b> ( ! p]son f association ) any o!r    
futures commission m]*ant4  7#f7 ,a     
tempor>y or p]man5t cease & desi/ ord]  
aga9/ ! p]son4  7#g7 ,any o!r fitt+     
sanction4  4  7b7 ,effective date ,)9 #f
 mon?s aft] ! date ( ! enactm5t ( ?is   
,act1 ! ,commodity ,futures ,trad+      
,commission %all issue regulations = !  
implem5tation ( ! am5dm5t made by       
subsection 7a74  #d4 ,review ( pro( (   
claims rules  7a7 ,9 g5]al ,! ,commodity
 ,futures ,trad+ ,commission %all review
 ! guidel9es = e/abli%+ acc\nt classes &
 det]m9+ ! basis = pro rata %>es "u1 & !
 sample claim =m set =? 91 "p #aij (    
title #ag1 ,code ( ,f$]al ,regulations1 
& consid] ! desirability ( all[+ use ( a
 set date = valuation purposes r ?an !  
date ( actual liquidation ( positions4  
7b7 ,report to ! ,congress ,)9 #a ye>   
aft] ! date ( ! enactm5t ( ?is ,act1 !  

,commodity ,futures ,trad+ ,commission  
%all submit to ! ,congress a writt5     
report t conta9s ! f9d+s ( ! ,commission
 ) respect to ! matt]s ref]r$ to 9      
subsection 7a71 & includes su* *anges to
 ! regulations 9 su* "p z ! ,commission 
deems appropriate4