,,ib  ,union ,cal5d> ,no4 #hfe  #aae?   
,,congress  #b;d ,session  ,h4 ,r4 #cheg
  ,report ,no4 #aae-hid1 ,"p ,i  ,,9 ,,!
 ,,h\se ,,( ,,repres5tatives  ,septemb] 
#bg1 #bjag ,mrs4 ,wagn] 7= h]self1 ,mr4 
,b>r1 ,mr4 ,mess]1 ,mr4 ,trott1 ,mr4    
,posey1 ,mr4 ,williams1 ,mr4 ,budd1 ,mr4
 ,holl+swor?1 & ,mr4 ,ku/(f ( ,t5nessee7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,f9ancial ,s]vices1 &
 9 addition to ! ,committees on ,ways & 
,means1 & ,education & ! ,work=ce1 = a  
p]iod to be subsequ5tly det]m9$ by !    
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,augu/ #aj1 #bjah   
,report$ f ! ,committee on ,f9ancial    
,s]vices  ,augu/ #aj1 #bjah,ref]ral to !
 ,committees on ,ways & ,means &        
,education & ! ,work=ce ext5d$ = a p]iod
 end+ n lat] ?an ,novemb] #af1 #bjah    
,novemb] #af1 #bjah,ref]ral to !        
,committees on ,ways & ,means &         
,education & ! ,work=ce ext5d$ = a p]iod
 end+ n lat] ?an ,decemb] #bh1 #bjah    

,decemb] #bh1 #bjah;,additional         
sponsors3 ,mr4 ,luetkemey]1 ,mr4 ,hill1 
,mr4 ,hultgr51 ,ms4 ,t5ney1 ,ms4        
,mc,sally1 ,mr4 ,ro?fus1 & ,mr4         
,sessions  ,decemb] #bh1                
#bjah;,committees on ,ways & ,means &   
,education & ! ,work=ce dis*>g$2        
committ$ to ! ,committee ( ! ,:ole ,h\se
 on ! ,/ate ( ! ,union & ord]$ to be    
pr9t$  ,a ,,bill  ,to am5d ! ,securities
 ,ex*ange ,act ( #aicd to e/abli% /&>ds 
( conduct = brok]s & deal]s t are 9 !   
be/ int]e/ ( _! retail cu/om]s4  #a4    
,%ort title ,?is ,act may be cit$ z !   
,protect+ ,advice = ,small ,sav]s ,act (
 #bjag or ! ,,pass ,act ( #bjag4  #b4   
,repeal ( ,dep>tm5t ( ,labor ,fiduci>y  
,rule ,! f9al rule ( ! ,dep>tm5t (      
,labor titl$ ,def9ition ( ! ,t]m        
,fiduci>y ,conflict ( ,int]e/           
,rule--,retirem5t ,inve/m5t ,advice &   
relat$ prohibit$ transaction exemptions 
publi%$ ,april #h1 #bjaf 7#ha ,f$4 ,reg4
 #bjidf71 %all h no =ce or effect4  #c4 
,/&>ds ( conduct = brok]s & deal]s  7a7 

,/&>d ( conduct = brok]s & deal]s :5    
mak+ recomm5dations to retail cu/om]s   
7#a7 ,9 g5]al ,! second subsection 7k7 (
 section #ae ( ! ,securities ,ex*ange   
,act ( #aicd 7#ae ,u4,s4,c4 #gho7k77    
7relat+ to /&>ds ( conduct7 is am5d$ to 
read z foll[s3  7k7 ,/&>d ( conduct =   
recomm5dations to retail cu/om]s  7#a7  
,9 g5]al ,! /&>d ( conduct = a brok] or 
deal] 7or regi/]$ repres5tative7 :5     
provid+ recomm5dations to a retail      
cu/om] is z foll[s3  7,a7 ,recomm5dation
 to retail cu/om] ,:5 a brok] or deal]  
7or regi/]$ repres5tative7 makes a      
recomm5dation to a retail cu/om]1 !     
recomm5dation %all be 9 ! retail        
cu/om]'s be/ int]e/ at ! "t x is made   
by--  7i7 reflect+ reasonable dilig5ce2 
&  7ii7 reflect+ ! reasonable c>e1      
skill1 & prud5ce t a brok] or deal] 7or 
regi/]$ repres5tative7 w\ld ex]cise bas$
 on ! cu/om]'s inve/m5t pr(ile4  7,b7   
,disclosure to retail cu/om]  7i7 ,9    
g5]al ,be=e a brok] or deal] 7or regi/]$
 repres5tative7 executes a transaction =

 ! fir/ "t = ea* retail cu/om] bas$ on a
 recomm5dation to su* retail cu/om]1 su*
 brok] or deal] 7or regi/]$             
repres5tative7 %all disclose prior to ! 
po9t ( sale to su* cu/om]1 9 a cle> &   
concise mann]--  7,i7 ! type & scope (  
s]vices ! brok] or deal] 7or regi/]$    
repres5tative7 provides2  7,,ii7 ! /&>d 
( conduct t applies to ! relation%ip2   
7,,iii7 ! types ( comp5sation ! brok] or
 deal] 7or regi/]$ repres5tative7       
receives2 &  7,,iv7 any mat]ial conflict
 ( int]e/4  7ii7 ,cont5t ( disclosure ,!
 ,commission may issue regulations      
det]m9+ ! cont5t ( ! disclosure requir$ 
9 clause 7i74 ,su* regulations may      
provide = a disclosure ( fees receiv$ by
 ! brok] or deal]1 :e!r f ! retail      
cu/om] or a ?ird p>ty1 prior to !       
execution ( ! transaction4  7,c7        
,mat]ial conflict ( int]e/ ,a brok] or  
deal] 7or regi/]$ repres5tative7 %all   
avoid1 disclose1 or o!rwise reasonably  
manage any mat]ial conflict ( int]e/ ) a
 retail cu/om]4  7#b7 ,nonviolation (   

/&>d ( conduct ,! foll[+ is n1 by       
itself1 a violation ( ! /&>d ( conduct  
describ$ 9 p>agraph 7#a73 7,a7 ,!       
receipt ( comp5sation1 includ+          
transaction-bas$ comp5sation1 by a brok]
 or deal] 7or regi/]$ repres5tative7 or 
any affiliate ( su* brok] or deal] 7or  
regi/]$ repres5tative74  7,b7 ,!        
recomm5dation by a brok] or deal] 7or   
regi/]$ repres5tative7 to a retail      
cu/om] ( pr9cipal transactions 7includ+ 
cross transactions71 or ! recomm5dation 
( affiliat$1 unaffiliat$1 or propriet>y 
products or s]vices1 or a limit$ range (
 products or s]vices4  7#c7 ,no         
requirem5t to recomm5d lea/ exp5sive    
product ,no?+ 9 ?is subsection %all     
require a brok] or deal] 7or regi/]$    
repres5tative7 to recomm5d ! lea/       
exp5sive security or inve/m5t /rategy   
7h[ev] quantifi$7 or to analyze all     
possible securities1 o!r products1 or   
inve/m5t /rategies be=e mak+ a          
recomm5dation4  7#d7 ,def9itions ,9 ?is 
subsection3 7,a7 ,comp5sation ,! t]m    

comp5sation includes commissions or     
sales *>ges1 or o!r fees or v>iable     
comp5sation1 = or relat$ to ! sale (    
securities or = ! s]vic+ ( cu/om]       
acc\nts1 :e!r paid by ! retail cu/om] or
 receiv$ f a ?ird p>ty4  7,b7 ,cu/om]'s 
inve/m5t pr(ile ,! t]m cu/om]'s inve/m5t
 pr(ile has ! mean+ ( su* t]m z describ$
 9 ,rule #baaa ( ! ,f9ancial ,indu/ry   
,regulatory ,au?ority z ( ! date ( !    
enactm5t ( ?is subsection4  7,c7        
,in/itutional acc\nt ,! t]m in/itutional
 acc\nt has ! same mean+ giv5 su* t]m 9 
,rule #deab ( ! ,f9ancial ,indu/ry      
,regulatory ,au?ority z ( ! date ( !    
enactm5t ( ?is subsection4  7,d7        
,mat]ial conflict ( int]e/ ,! t]m       
mat]ial conflict ( int]e/ means a       
f9ancial int]e/ ( a brok] or deal] 7or  
regi/]$ repres5tative7 t a reasonable   
p]son w\ld expect to affect !           
imp>tiality ( a recomm5dation4  7,e7    
,reasonable dilig5ce ,! t]m reasonable  
dilig5ce has ! mean+ ( su* t]m z        
describ$ 9 ,rule #baaa ( ! ,f9ancial    

,indu/ry ,regulatory ,au?ority z ( !    
date ( ! enactm5t ( ?is subsection4     
7,f7 ,recomm5dation ,! t]m recomm5dation
 means ei!r ( ! foll[+ recomm5dations   
7"u ! mean+ ascrib$ to su* t]m 9 ,rule  
#baaa ( ! ,f9ancial ,indu/ry ,regulatory
 ,au?ority7 = :i* ! brok] or deal] 7or  
regi/]$ repres5tative7 mak+ !           
recomm5dation receives or w receive     
comp5sation3  7i7 ,a non-discretion>y   
recomm5dation to buy1 hold1 or sell     
securities1 or to foll[ an inve/m5t     
/rategy involv+ securities1 = taxable or
 non-taxable acc\nts4  7ii7 ,a          
non-discretion>y recomm5dation to       
rollov] or transf] assets 9 an          
employ]-sponsor$ retirem5t plan to an   
individual retirem5t acc\nt4  7,g7      
,retail cu/om] ,! t]m retail cu/om]     
means a natural p]son or legal entity1  
or ! legal repres5tative ( su* natural  
p]son or legal entity1 9 ea* case o!r   
?an an in/itutional acc\nt1 :o--  7i7   
receives a recomm5dation f a brok] or   
deal] 7or regi/]$ repres5tative72 &     

7ii7 implem5ts su* recomm5dation ) su*  
brok] or deal] prim>ily = p]sonal1      
family1 retirem5t1 or h\sehold purposes4
  7#e7 ,sup]session ,! provisions ( ?is 
subsection %all sup]s$e & preempt ,/ate 
law1 o!r ?an a ,/ate law t regulates    
insurance products t are n securities1  
ins(> z !y may n[ or h]eaft] relate to a
 brok] or deal]1 or regi/]$             
repres5tative ( a brok] or deal]4  7#f7 
,fiduci>y /atus "u ,,erisa1 ! ,int]nal  
,rev5ue ,code1 ! ,inve/m5t ,advis]s ,act
 ( #aidj1 or o!r fiduci>y regimes ,!    
fact t a p]son may owe1 or may 9 fact   
comply )1 ! /&>d ( conduct "u ?is       
subsection %all n mean or create any    
presumption t su* p]son is a fiduci>y "u
 ! ,employee ,retirem5t ,income         
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#ajja et seq471 section #dige ( !       
,int]nal ,rev5ue ,code ( #aihf1 !       
,inve/m5t ,advis]s ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;b et seq471 or any o!r    
,f$]al1 ,/ate1 or local /atutory or     
regulatory fiduci>y regime4  4  7#b7    

,application ,! am5dm5t made by p>agraph
 7#a7 %all apply to brok]s & deal]s 7or 
regi/]$ repres5tative7 on ! date t is   
#ah mon?s aft] ! date ( ! enactm5t ( ?is
 ,act4  7b7 ,rulemak+ au?ority ,section 
#iac ( ! ,dodd-,frank ,wall ,/reet ,re=m
 & ,consum] ,protection ,act is am5d$ to
 read z foll[s3  #iac4 ,obligations (   
brok]s & deal]s & o!r p]sons & entities 
7a7 ,rulemak+  7#a7 ,rulemak+ by !      
,commission ,! ,commission may issue    
regulations z ! ,commission det]m9es is 
necess>y to facilitate compliance by    
brok]s & deal]s 7includ+ _! regi/]$     
repres5tative7 ) ! obligations ( su*    
brok]s & deal]s 7& _! regi/]$           
repres5tative7 "u ! second subsection   
7k7 ( section #ae ( ! ,securities       
,ex*ange ,act ( #aicd only if su*       
rulemak+ does n impose any obligation   
relat$ to /&>d ( c>e on a brok] or deal]
 7or its regi/]$ repres5tative7 t is 9  
addition to1 duplicative (1 or          
inconsi/5t )1 ! obligations set =? 9 su*
 subsection4  7#b7 ,rulemak+ by !       

,secret>y ( ,labor & ! ,secret>y ( !    
,treasury ,aft] ! date ( ! enactm5t ( ! 
,,pass ,act ( #bjag1 ! ,secret>y (      
,labor & ! ,secret>y ( ! ,treasury %all 
n promulgate any regulation "u !        
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajja et    
seq47 or section #dige ( ! ,int]nal     
,rev5ue ,code ( #aihf1 respectively1    
def9+ ! circum/ances "u :i* a p]son is  
consid]$ a fiduci>y t w\ld impose any   
obligation on a brok] or deal] 7or its  
regi/]$ repres5tative7 or on a life     
insur] fulfill+ ! t]m insurance company 
z def9$ 9 section #c7;a77#b7 ( !        
,securities ,act ( #aicc 7or its ag5ts  
or di/ributors7 t is 9 addition to1     
duplicative (1 or inconsi/5t )1 !       
obligations set =? 9 su* subsection 7k7 
( section #ae ( ! ,securities ,ex*ange  
,act ( #aicd 7#ae ,u4,s4,c4 #gho74  7b7 
,exemption available to c]ta9 p]sons )  
respect to manufacture or sale (        
annuities  7#a7 ,exemption ,) respect to
 ! manufacture or sale ( annuities )9   

p>agraphs 7#b7 or 7#h7 ( section #c7;a7 
( ! ,securities ,act ( #aicc 7#ae       
,u4,s4,c4 #gg;c7a77 or section #ihi;,j (
 ! ,dodd-,frank ,wall ,/reet ,re=m &    
,consum] ,protection ,act 7#ae ,u4,s4,c4
 #gg;c note71 a p]son regulat$ by a     
,/ate insurance regulator may rely on ! 
exemptions 9 section #djh7;b77#ba7 ( !  
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4             
#aajh7;b77#ba77 & section #dige7;d77#bd7
 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z  
add$ by ! ,,pass ,act ( #bjag7 only if--
  7,a7 su* p]son adopts & implem5ts     
practices on a nationwide basis = ! sale
 ( annuity contracts t meet or exce$ !  
m9imum requirem5ts set =? 9 ! second    
subsection 7k7 ( section #ae ( !        
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gho7 & su* p]son is subject  
to regulation or exam9ation by a ,/ate  
insurance regulator = purposes ( assess+
 m>ket conduct2 or  7,b7 su* p]son      
complies ) a /&>d sub/antially simil> to
 su* subsection 7k7 & is regulat$ by a  

,/ate insurance regulator ) respect to  
annuities )9 p>agraphs 7#b7 or 7#h7 (   
section #c7;a7 ( ! ,securities ,act (   
#aicc 7#ae ,u4,s4,c4 #gg;c7a77 or       
section #ihi;,j ( ! ,dodd-,frank ,wall  
,/reet ,re=m & ,consum] ,protection ,act
 7#ae ,u4,s4,c4 #gg;c note74  7#b7      
,coord9ation & coop]ation ,^u ! reque/ (
 any ,/ate insurance regulator1 !       
,commission or ! ,f9ancial ,indu/ry     
,regulatory ,au?ority %all provide su*  
reasonable assi/ance to ! reque/+       
,au?ority z ne$$ 9 connection ) !       
coord9ation or implem5tation ( ?is      
section4  7#c7 ,def9ition ( ,/ate       
insurance regulator ,z us$ 9 ?is        
subsection1 ! t]m ,/ate insurance       
regulator means ! pr9cipal insurance    
regulatory au?ority ( a ,/ate1 !        
,di/rict ( ,columbia1 any t]ritory ( !  
,unit$ ,/ates1 ,pu]to ,rico1 ,guam1     
,am]ican ,samoa1 ! ,tru/ ,t]ritory ( !  
,pacific ,isl&s1 ! ,virg9 ,isl&s1 & !   
,nor!rn ,m>iana ,isl&s4  7c7 ,additional
 exemptions ,a p]son :o complies ) a    

/&>d sub/antially simil> to ! second    
subsection 7k7 ( section #ae ( !        
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gho7 may rely on ! exemptions
 9 section #djh7;b77#ba7 ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajh7;b77#ba77 &  
section #dige7;d77#bd7 ( ! ,int]nal     
,rev5ue ,code ( #aihf 7z add$ by !      
,,pass ,act ( #bjag7 only if su* p]son  
is--  7#a7 regi/]$ z an inve/m5t advis] 
"u ! ,inve/m5t ,advis]s ,act ( #aidj    
7#ae ,u4,s4,c4 #hj;b-#a et seq47 or "u !
 laws ( ! ,/ate 9 :i* ! p]son ma9ta9s   
its pr9cipal (fice & place ( bus9ess2 or
  7#b7 a bank or simil> f9ancial        
in/itution sup]vis$ by ! ,unit$ ,/ates  
or a ,/ate1 or a sav+s association 7z   
def9$ 9 section #c7;b77#a7 ( ! ,f$]al   
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac7;b77#a774  4  7c7 ,exemption f    
prohibit$ transactions = brok]s &       
deal]s1 & o!r p]sons & entities1 :5 mak+
 recomm5dations to retail cu/om]s  7#a7 
,section #djh7;b7 ( ! ,employee         

,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajh7;b77 is am5d$
 by add+ at ! end ! foll[+3  7#ba7 ,any 
transaction involv+ a recomm5dation made
 by a brok] or deal] 7includ+ its       
regi/]$ repres5tative71 or o!r p]sons or
 entities1 t is subject to ! requirem5ts
 ( ! second subsection 7k7 ( section #ae
 ( ! ,securities ,ex*ange ,act ( #aicd  
7#ae ,u4,s4,c4 #gho7k774  4  7#b7       
,section #dige7;d7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+3  7#bd7 any transaction involv+
 a recomm5dation made by a brok] or     
deal] 7includ+ its regi/]$              
repres5tatives71 or o!r p]sons or       
entities1 t is subject to ! requirem5ts 
( ! second subsection 7k7 ( section #ae 
( ! ,securities ,ex*ange ,act ( #aicd   
7#ae ,u4,s4,c4 #gho7k774  4  7d7 ,repeal
 ( c]ta9 provisions ,! foll[+ provisions
 are h]eby repeal$3 7#a7 ,! second      
subsection 7l7 & subsection 7m7 (       
section #ae ( ! ,securities ,ex*ange    
,act ( #aicd 7#ae ,u4,s4,c4 #gho74  7#b7

 ,subsections 7g71 7h71 & 7i7 ( section 
#baa ( ! ,inve/m5t ,advis]s ,act ( #aidj
 7#ae ,u4,s4,c4 #hj;b-#aa74  ,decemb]   
#bh1 #bjah ,committees on ,ways & ,means
 & ,education & ! ,work=ce dis*>g$2     
committ$ to ! ,committee ( ! ,:ole ,h\se
 on ! ,/ate ( ! ,union & ord]$ to be    
pr9t$