About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

H.R. 1090, Retail Investor Protection Act 1 (October 21, 2015)

handle is hein.congrec/cbo2599 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE COST ESTIMATE October 21, 2015 H.R. 1090 Retail Investor Protection Act As ordered reported by the House Committee on Financial Services on September 30, 2015 H.R. 1090 would prohibit the Secretary of Labor from finalizing a regulation related to certain investment advisors until the Securities and Exchange Commission (SEC) issues a final rule setting standards of conduct for brokers and dealers of securities. The regulation that would be delayed by the bill will define the circumstances under which an individual is considered to be a fiduciary when providing investment advice to employee retirement and other benefit plans and their participants. Under current law, the SEC is authorized to develop regulations that establish the same standards of conduct for brokers and dealers that are already in place for investment advisors when providing advice to persons who use the information for personal reasons. Based on information from the SEC and the Employee Benefits Security Administration (EBSA) within the Department of Labor, CBO estimates that implementing H.R. 1090 would not affect federal spending. The EBSA has proposed a new rule related to fiduciary standards for advisors of retirement and employee benefit plans but has not published a schedule for implementation. Therefore, adding a contingency-that the SEC act first-may delay the timing of a final rule from the EBSA, but at no additional cost to the agency. In a 2011 report1, the staff of the SEC recommended that the commission develop a rule to harmonize standards of conduct for brokers, dealers, and investment advisors; to that end, in 2013 the commission issued a request for additional data and information on the topic. The SEC has not, however, proposed such a rule. Because the bill would not direct the SEC to issue a rule on standards of conduct, CBO expects that implementing H.R. 1090 would not affect the SEC's workload or its costs. Enacting H.R. 1090 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting H.R. 1090 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2026. 1. Securities and Exchange Commission, Study on Investment Advisors and Broker Dealers (January 2011), page 101, wwwsec. 2ov/news/studies/2011/91 studyfinaLdf.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most