,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #biai  ,,in ,,the ,,house ,,of  
,,representatives  ,may #bb1 #bjai,mr4  
,huizenga 7for himself and ,mr4         
,mc,adams7 introduced the following     
bill2 which was referred to the         
,committee on ,financial ,services  ,a  
,,bill  ,to require the ,securities and 
,exchange ,commission to carry out a    
study to evaluate the issues affecting  
the provision of and reliance upon      
investment research into small issuers4 
#a4 ,short title ,this ,act may be cited
 as the ,improving ,investment ,research
 for ,small and ,emerging ,issuers ,act4
  #b4 ,research study  7a7 ,study       
required ,the ,securities and ,exchange 
,commission shall conduct a study to    
evaluate the issues affecting the       
provision of and reliance upon          
investment research into small issuers1 
including emerging growth companies and 
companies considering initial public    
offerings4  7b7 ,contents of study ,the 
study required under subsection 7a7     

shall consider-- 7#a7 factors related to
 the demand for such research by        
institutional and retail investors2     
7#b7 the availability of such research1 
including-- 7,a7 the number and types of
 firms who provide such research2  7,b7 
the volume of such research over time2  
and  7,c7 competition in the research   
market2  7#c7 conflicts of interest     
relating to the production and          
distribution of investment research2    
7#d7 the costs of such research2  7#e7  
the impacts of different payment        
mechanisms for investment research into 
small issuers1 including whether such   
research is paid for by--  7,a7         
hard-dollar payments from research      
clients2  7,b7 payments directed from   
the client's commission income 7i4e41   
soft dollars72 or  7,c7 payments from   
the issuer that is the subject of such  
research2  7#f7 any unique challenges   
faced by minority-owned1 women-owned1   
and veteran-owned small issuers in      
obtaining research coverage2 and  7#g7  

the impact on the availability of       
research coverage for small issuers due 
to-- 7,a7 investment adviser            
concentration and consolidation1        
including any potential impacts of      
fund-size on demand for investment      
research of small issuers2  7,b7 broker 
and dealer concentration and            
consolidation1 including any            
relationships between the size of the   
firm and allocation of resources for    
investment research into small issuers2 
7,c7 ,securities and ,exchange          
,commission rules2  7,d7 registered     
national securities association rules2  
7,e7 ,state and ,federal liability      
concerns2  7,f7 the settlement          
agreements referenced in ,securities and
 ,exchange ,commission ,litigation      
,release ,no4 #ahdch 7i4e41 the ,global 
,research ,analyst ,settlement72 and    
7,g7 ,directive #bjad_/fe_/;,,eu of the 
,european ,parliament and of the        
,council of #ae ,may #bjad on markets in
 financial instruments and amending     

,directive #bjjb_/ib_/;,,ec and         
,directive #bjaa_/fa_/;,,eu1 as         
implemented by the ,european ,union     
7,,eu7 member states 7,mi,f,i,d ,,ii74  
7c7 ,report required ,not later than    
#ahj days after the date of the         
enactment of this ,act1 the ,securities 
and ,exchange ,commission shall submit  
to ,congress a report that includes--   
7#a7 the results of the study required  
by subsection 7a72 and  7#b7            
recommendations to increase the demand  
for1 volume of1 and quality of          
investment research into small issuers1 
including emerging growth companies and 
companies considering initial public    
offerings4