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U.S. GOVERNMENT
INFORMATION
GPO
115TH CONGRESS REPT. 115-894
2d Session HOUSE OF REPRESENTATIVES Part 1
PROTECTING ADVICE FOR SMALL SAVERS ACT OF 2017
AUGUST 10, 2018.-Ordered to be printed
Mr. HENSARLING, from the Committee on Financial Services,
submitted the following
REPORT
together with
MINORITY VIEWS
[To accompany H.R. 3857]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 3857) to amend the Securities Exchange Act of 1934 to
establish standards of conduct for brokers and dealers that are in
the best interest of their retail customers, having considered the
same, report favorably thereon without amendment and rec-
ommend that the bill do pass.
PURPOSE AND SUMMARY
On September 27, 2017, Representative Ann Wagner introduced
the Protecting Advice for Small Savers Act of 2017, or PASS
Act, which repeals the final rule of the U.S. Department of Labor
(DOL) titled Definition of the Term 'Fiduciary' Conflict of Interest
Rule-Retirement Investment Advice and related prohibited trans-
action exemptions published on April 8, 2016. The bill also amends
the second subsection (k) of Section 15 of the Securities Exchange
Act of 1934 to require a broker-dealer to act in the retail customer's
best interest when providing a recommendation, which must reflect
(i) reasonable diligence and (ii) the reasonable care, skill, and pru-
dence that a broker-dealer would exercise based on the customer's
investment profile. The bill also requires a broker-dealer to provide
increased disclosures to the customer before the broker-dealer may
purchase a securities product on behalf of that customer, including
disclosures regarding the type and scope of services the broker-
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