,,ii  #aahth ,,congress  #ast ,session  
,s4 #cbjc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,november #b1  
#bjbc,mr4 ,rubio introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,banking1
 ,housing1 and ,urban ,affairs  ,a      
,,bill  ,to amend the ,investment       
,company ,act of #aidj to impose certain
 requirements relating to the use of    
market indexes1 and for other purposes4 
#a4 ,short title ,this ,act may be cited
 as the ,index ,provider ,transparency  
and ,accountability ,act4  #b4 ,market  
indexes  7a7 ,in general ,the           
,investment ,company ,act of #aidj 7#ae 
,u4,s4,c4 #hj;a-#a et seq47 is amended--
 7#a7 in section #h7;b7 7#ae ,u4,s4,c4  
#hj;a-#h7;b77-- 7,a7 in paragraph 7#d71 
by striking and at the end2  7,b7 in    
paragraph 7#e71 by striking the period  
at the end and inserting 2 and2 and     
7,c7 by adding at the end the following3
  7#f7 a disclosure of-- 7,a7 whether   
the registrant intends to track the     

returns of1 or benchmark against1 a     
specific index of securities2 and  7,b7 
if the registrant intends to track the  
returns of1 or benchmark against1 a     
specific index of securities-- 7i7 the  
identity of the index provider2  7ii7   
any involvement of the registrant in    
designing the index2  7iii7 any ability 
of the registrant to influence the      
construction or composition of the      
index2 and  7iv7 any licensing fees paid
 by the registrant to the index         
provider4  2  7#b7 in section #ac 7#ae  
,u4,s4,c4 #hj;a-#ac7-- 7,a7 by          
redesignating subsection 7c7 as         
subsection 7d72 and  7,b7 by inserting  
after subsection 7b7 the following3  7c7
 ,change in investment policy relating  
to indexing  7#a7 ,in general ,with     
respect to a registered investment      
company that tracks the returns of1 or  
benchmarks against1 a specific index of 
securities1 if a deviation with respect 
to that index occurs such that the      
deviation would be permitted under      

subsection 7a77#c7 if made directly by  
the investment company only if          
authorized by the vote of a majority of 
the outstanding voting securities of the
 investment company1 the investment     
company may not continue to so track1 or
 benchmark against1 the index1 unless so
 authorized by such a vote or by a vote 
by the board of directors of the        
investment company4  7#b7 ,rule of      
construction ,for the purposes of       
paragraph 7#a71 a deviation with respect
 to an index that requires a vote1 as   
described in that paragraph1 includes   
such a deviation that adds new1 or      
increases the weighting of1 securities--
 7,a7 of issuers that are headquartered 
or incorporated in the ,people's        
,republic of ,china2 or  7,b7 that are  
listed on exchanges in the ,people's    
,republic of ,china4  2 and  7#c7 in    
section #cj 7#ae ,u4,s4,c4 #hj;a-#bi7-- 
7,a7 in subsection 7b77#a71 by striking 
this title2 and and inserting the       
following3 8this title1 which shall     

include--  7,a7 information regarding   
whether the registered investment       
company tracks the returns of1 or       
benchmarks against 7or intends to track1
 or benchmark against71 a specific index
 of securities2 and  7,b7 if the        
registered investment company engages   
in1 or intends to engage in1 the action 
described in subparagraph 7,a71 the     
information described in section        
#h7;b77#f77;,b7 with respect to the     
index described in subparagraph 7,a7 of 
this paragraph2 and  2 and  7,b7 by     
adding at the end the following3  7k7   
,annual disclosure regarding ,chinese   
securities  7#a7 ,in general ,each      
registered investment company shall     
annually transmit to the stockholders of
 the investment company a report        
containing information regarding1 with  
respect to any security owned by the    
investment company that is issued by an 
issuer that is headquartered or         
incorporated in the ,people's ,republic 
of ,china or listed on an exchange in   

the ,people's ,republic of ,china-- 7,a7
 the percentage of the securities of    
that issuer that are owned by           
governmental entities in the ,people's  
,republic of ,china2  7,b7 whether the  
entities described in subparagraph 7,a7 
have a controlling financial interest   
with respect to the issuer2  7,c7 the   
name of any official of the ,chinese    
,communist ,party who is a member of the
 board of directors of-- 7i7 the issuer2
 or  7ii7 the operating entity with     
respect to the issuer2  7,d7 whether the
 articles of incorporation of the issuer
 7or equivalent organizing document7    
contains any charter of the ,chinese    
,communist ,party1 including the text of
 any such charter2 and  7,e7 whether the
 investment company was unable to obtain
 any of the information required under  
any of subparagraphs 7,a7 through 7,d74 
7#b7 ,inclusion permitted ,a report that
 a registered investment company is     
required to transmit under paragraph    
7#a7 may be included in a report that   

the investment company is required to   
transmit under subsection 7e74  4  7b7  
,technical and conforming amendment     
,section #dja7;a7 of the ,comprehensive 
,iran ,sanctions1 ,accountability1 and  
,divestment ,act of #bjaj 7#bb ,u4,s4,c4
 #heea7;a77 is amended1 in the matter   
preceding paragraph 7#a71 by striking   
section #ac7;c77#a77;,b7 and inserting  
section #ac7;d77#a77;,b74  7c7 ,updates 
to rules ,not later than #a year after  
the date of enactment of this ,act1 the 
,securities and ,exchange ,commission   
shall make any updates to the rules of  
the ,commission that are necessary as a 
result of this section and the          
amendments made by this section4