,,ib ,union ,calendar ,no4 #fia #aaith ,,congress #b;d ,session ,h4 ,r4 #gahg ,report ,no4 #aai-gia ,,in ,,the ,,house ,,of ,,representatives ,january #ba1 #bjbf,mr4 ,nunn of ,iowa 7for himself and ,mr4 ,meeks7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,september #a1 #bjbf;,additional sponsors3 ,ms4 ,pettersen1 ,mr4 ,lawler1 ,mr4 ,stutzman1 ,mr4 ,garbarino1 ,ms4 ,mc,bride1 ,mr4 ,moore of ,north ,carolina1 ,mr4 ,timmons1 ,mrs4 ,kim1 ,ms4 ,de ,la ,cruz1 ,mr4 ,kennedy of ,new ,york1 and ,mr4 ,moran ,september #a1 #bjbf,reported with amendments1 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 ,january #ba1 #bjbf ,a ,,bill ,to amend the ,securities ,exchange ,act of #aicd to provide an exemption from the definition of a broker for a certain registered representative-owned personal services entity1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,clarity for ,compensation ,act4 #b4 ,broker definition exception for registered representative-owned personal services entity 7a7 ,in general ,section #c7;a77#d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#d77 is amended by adding at the end the following3 7,g7 ,exception for registered representative-owned personal services entity 7i7 ,in general ,a personal services entity shall not be considered a broker solely by reason of receiving compensation on behalf of a registered representative from that representative's registered broker at the direction of such representative1 if-- 7,i7 the representative's registered broker instructs or otherwise approves the amount and timing of the payment and maintains records regarding the payment made2 7,,ii7 the personal services entity does not hold itself out as a broker2 7,,iii7 the personal services entity does not engage in any other broker activity1 other than the receipt of compensation on behalf of the registered representative2 7,,iv7 the representative's registered broker maintains adequate supervision and control over the registered representative and the personal services entity2 7,v7 the representative's registered broker and the personal services entity have a written agreement governing their relationship and the responsibilities of each party regarding compensation arrangements2 7,,vi7 the personal services entity is only owned by-- 7aa7 the registered representative2 7bb7 if the registered representative is an individual1 immediate family members of the registered representative2 or 7cc7 entities wholly owned by-- 7,,aa7 the registered representative2 or 7,,bb7 if the registered representative is an individual1 immediate family members of the registered representative2 7,,vii7 the personal services entity meets such other requirements as the ,commission may prescribe1 by rule2 and 7,,viii7 the personal services entity1 with respect solely to the resolution of disputes with1 and recovery by1 customers-- 7aa7 agrees in writing-- 7,,aa7 to submit to the jurisdiction of a dispute resolution forum of the applicable self-regulatory organization solely for the purposes of enforcement of any award rendered against the registered representative arising from the securities business of the registered representative2 and 7,,bb7 to be bound by any such award to the extent of assets held by the personal services entity2 and 7bb7 remains subject to all financial obligations1 liabilities1 and remedies of the registered representative under applicable ,federal securities laws1 the rules of the applicable self-regulatory organization1 and the securities laws of any ,state with respect to such securities business4 7ii7 ,oversight and examination ,in order to ensure that a personal services entity that is not considered a broker by reason of this subparagraph continues to meet the requirements for the exception under this subparagraph1 the personal services entity shall maintain1 and make available upon request to the ,commission and the applicable self-regulatory organization1 all books and records in the possession of the personal services entity that-- 7,i7 the broker from which the personal services entity receives compensation is required to maintain and make available to the ,commission and the applicable self-regulatory organization2 and 7,,ii7 the ,commission determines necessary and appropriate to demonstrate that the personal services entity continues to meet the requirements for the exception under this subparagraph4 7iii7 ,definitions ,in this subparagraph3 7,i7 ,applicable self-regulatory organization ,with respect to a personal services entity or a registered representative of a broker1 the term applicable self-regulatory organization means each self-regulatory organization with which the related broker is required to be registered4 7,,ii7 ,broker activity ,the term broker activity means an activity undertaken by a broker or a dealer who is registered1 or required to be registered1 under this ,act4 7,,iii7 ,immediate family member ,with respect to an individual1 the term immediate family member means a spouse1 child1 parent1 brother1 sister1 grandparent1 grandchild1 stepparent1 stepchild1 stepbrother1 or stepsister of the individual4 7,,iv7 ,personal services entity ,the term personal services entity means an entity that is established by a registered representative to receive compensation for the services of the registered representative and for other activity that is not securities-related4 7,v7 ,registered representative ,with respect to a broker1 the term registered representative means a person who is-- 7aa7 an associated person of a broker or dealer with respect to the broker2 and 7bb7 registered with the applicable self-regulatory organization4 4 7b7 ,effective date ,section #c7;a77#d77;,g7 of the ,securities ,exchange ,act of #aicd1 as added by subsection 7a71 shall take effect on the date that is #ahj days after the date of the enactment of this ,act4 ,amend the title so as to read3 ,a bill to amend the ,securities ,exchange ,act of #aicd to provide an exception from the definition of a broker for a certain registered representative-owned personal services entity1 and for other purposes44 ,september #a1 #bjbf,reported with amendments1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed