,,ib ,union ,calendar ,no4 #ia #aafth ,,congress #ast ,session ,h4 ,r4 #ahae ,report ,no4 #aaf-abc ,,in ,,the ,,house ,,of ,,representatives ,march #ah1 #bjai ,mr4 ,casten of ,illinois introduced the following bill2 which was referred to the ,committee on ,financial ,services ,june #bj1 #bjai ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,march #ah1 #bjai ,a ,,bill ,to require the ,securities and ,exchange ,commission1 when developing rules and regulations about disclosures to retail investors1 to conduct investor testing1 including a survey and interviews of retail investors1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,sec ,disclosure ,effectiveness ,testing ,act4 #b4 ,disclosure testing 7a7 ,in general ,section #bc7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghw7a77 is amended by adding at the end the following3 7#d7 ,investor testing 7,a7 ,in general ,the ,commission shall engage in investor testing prior to issuing any rule or regulation which designates documents or information to be disclosed under the securities laws1 if such documents or information-- 7i7 are primarily used by retail investors1 as determined by the ,commission2 and 7ii7 are intended to be used by retail investors to make informed investment decisions or to understand the investments held by the retail investor4 7,b7 ,contents ,investor testing conducted pursuant to subparagraph 7,a7 shall include the following3 7i7 ,qualitative testing in the form of one-on-one cognitive interviews of retail investors about documents or information1 or samples of such documents or information1 to be provided4 7ii7 ,a nationwide survey of retail investors1 designed to complement the interviews under clause 7i71 on-- 7,i7 the usefulness of such documents or information1 or samples of such documents or information2 7,,ii7 the proposed format of such documents or information1 or samples of such documents or information2 and 7,,iii7 delivery preferences of such documents or information1 or samples of such documents or information4 7iii7 ,analysis and publication in the ,federal ,register of the results of the survey and interviews4 7iv7 ,an opportunity for the public to comment on such results published in the ,federal ,register4 7,c7 ,substantive changes ,if the ,commission1 in the period between engaging in investor testing and publishing a final rule1 makes substantive changes to such rule that the ,commission determines would have a significant impact on retail investors1 the ,commission shall again engage in investor testing4 7,d7 ,public availability of retail testing results ,the ,commission shall make the data and results of any investor testing performed pursuant to this paragraph available to the public4 4 7b7 ,participation of ,investor ,advocate ,section #d7;g7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;d7g77 is amended-- 7#a7 in paragraph 7#d7-- 7,a7 in subparagraph 7,d77ii71 by striking and at the end2 7,b7 by redesignating subparagraph 7,e7 as subparagraph 7,f72 and 7,c7 by inserting after subparagraph 7,d7 the following3 7,e7 engage in investor testing-- 7i7 as necessary to carry out the functions of the ,office2 and 7ii7 under section #bc7;a77#d71 if the ,commission determines it appropriate2 and 2 and 7#b7 by adding at the end the following3 7#i7 ,publication of data and results of investor testing ,with respect to any investor testing carried out by the ,investor ,advocate pursuant to paragraph 7#d77;,e71 the ,investor ,advocate may make the data and results of such investor testing available to the public1 and without further review or editing by the ,commission4 4 7c7 ,prior rules 7#a7 ,in general ,for any final rule or regulation issued by the ,securities and ,exchange ,commission 7in this subsection referred to as the ,commission7 before the date of the enactment of this ,act that would be subject to investor testing under section #bc7;a77#d7 of the ,securities ,exchange ,act of #aicd1 had such rule been issued on or after the date of enactment of this ,act1 the ,commission shall perform investor testing with respect to such rule or regulation that includes the contents described in such section #bc7;a77#d74 7#b7 ,schedule ,the ,commission shall1 not later than #f months after the date of the enactment of this ,act1 establish a schedule for completing any investor testing required under paragraph 7#a7 that prioritizes testing of any final rules and regulations that designate documents or information central to retail investor decision making4 7#c7 ,report ,the ,commission shall issue a report to ,congress each year containing the following3 7,a7 ,the status of any investor testing required under paragraph 7#a74 7,b7 ,the results of any investor testing completed under paragraph 7#a74 7,c7 ,any priorities the ,commission has1 based on results of investor testing required by paragraph 7#a71 for-- 7i7 revising or eliminating any final rule or regulation designating documents or information to be provided to retail investors2 and 7ii7 revising any other final rule or regulation to supplement revised or eliminated rules designating documents or information to be provided to retail investors4 ,june #bj1 #bjai ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed