[House Report 113-253]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-253
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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 992) TO AMEND PROVISIONS
IN SECTION 716 OF THE DODD-FRANK WALL STREET REFORM AND CONSUMER
PROTECTION ACT RELATING TO FEDERAL ASSISTANCE FOR SWAPS ENTITIES, AND
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2374) TO AMEND THE
SECURITIES EXCHANGE ACT OF 1934 TO PROVIDE PROTECTIONS FOR RETAIL
CUSTOMERS, AND FOR OTHER PURPOSES
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October 28, 2013.--Referred to the House Calendar and ordered to be
printed
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Mr. Sessions, from the Committee on Rules,
submitted the following
R E P O R T
[To accompany H. Res. 391]
The Committee on Rules, having had under consideration
House Resolution 391, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 992, the
Swaps Regulatory Improvement Act, under a closed rule. The
resolution provides one hour of debate equally divided among
and controlled by the chairs and ranking minority members of
the Committee on Agriculture and the Committee on Financial
Services. The resolution waives all points of order against
consideration of the bill and provides that it shall be
considered as read. The resolution waives all points of order
against provisions in the bill. The resolution provides one
motion to recommit.
Section 2 of the resolution provides for consideration of
H.R. 2374, the Retail Investor Protection Act, under a
structured rule. The resolution provides one hour of debate
equally divided and controlled by the chair and ranking
minority member of the Committee on Financial Services. The
resolution waives all points of order against consideration of
the bill. The resolution provides that an amendment in the
nature of a substitute consisting of the text of Rules
Committee Print 113-23 shall be considered as adopted, and the
bill, as amended, shall be considered as read. The resolution
waives all points of order against provisions in the bill, as
amended. The resolution makes in order only the further
amendment printed in this report, if offered by Representative
George Miller of California or his designee, which shall be
considered as read, shall be separately debatable for 20
minutes equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be
subject to a demand for division of the question. The
resolution waives all points of order against the amendment
printed in this report. The resolution provides one motion to
recommit with or without instructions.
Section 3 of the resolution provides that a motion to
proceed with regard to a joint resolution of disapproval
specified in section 1002 of the Continuing Appropriations Act,
2014, may be offered even if the joint resolution has not been
reported or discharged, shall be in order only on the
legislative day of October 29, 2013 or the legislative day of
October 30, 2013, and shall be debatable for one hour equally
divided and controlled by the proponent and an opponent.
Section 4 of the resolution provides that on any
legislative day during the period from October 31, 2013,
through November 11, 2013: the Journal of the proceedings of
the previous day shall be considered as approved; and the Chair
may at any time declare the House adjourned to meet at a date
and time to be announced by the Chair in declaring the
adjournment.
Section 5 of the resolution provides that the Speaker may
appoint Members to perform the duties of the Chair for the
duration of the period addressed by section 4 of the
resolution.
EXPLANATION OF WAIVERS
Although the resolution waives all points of order against
consideration of H.R. 992, the Committee is not aware of any
points of order. The waiver is prophylactic in nature.
Although the resolution waives all points of order against
provisions in H.R. 992, the Committee is not aware of any
points of order. The waiver is prophylactic in nature.
Although the resolution waives all points of order against
consideration of H.R. 2374, the Committee is not aware of any
points of order. The waiver is prophylactic in nature.
Although the resolution waives all points of order against
provisions in H.R. 2374, as amended, the Committee is not aware
of any points of order. The waiver is prophylactic in nature.
Although the resolution waives all points of order against
the amendment to H.R. 2374 printed in this report, the
Committee is not aware of any points of order. The waiver is
prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 88
Motion by Ms. Slaughter to report open rules for H.R. 992
and H.R. 2374. Defeated: 4-8
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Majority Members Vote Minority Members Vote
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Ms. Foxx........................................ Nay Ms. Slaughter..................... Yea
Mr. Bishop of Utah.............................. Nay Mr. McGovern...................... Yea
Mr. Cole........................................ Nay Mr. Hastings of Florida........... Yea
Mr. Woodall..................................... Nay Mr. Polis......................... Yea
Mr. Nugent...................................... Nay
Mr. Webster..................................... Nay
Ms. Ros-Lehtinen................................ ............
Mr. Burgess..................................... Nay
Mr. Sessions, Chairman.......................... Nay
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SUMMARY OF THE AMENDMENT TO H.R. 2374 MADE IN ORDER
Miller, George (CA), Conyers (MI): Authorizes the
Department of Labor to issue a fiduciary duty rule that
protects access to investment education and advice and assures
the availability of reasonable compensation to financial
service providers. Requires a study of the effect of current
investment industry practices on the standard of care provided
to investors by persons providing investment advice, including
the effect on low-income investors. (20 minutes)
TEXT OF AMENDMENT TO H.R. 2374 MADE IN ORDER
An Amendment To Be Offered by Representative Miller of California or
His Designee, Debatable for 20 Minutes
Page 1, line 5, strike ``After'' and insert ``(a) In
General.--Except as provided in subsection (b), after''.
Page 1, after line 14, insert the following:
(b) Exception.--
(1) In general.--The Secretary of Labor may issue a
rule that--
(A) establishes standards of care to improve
investment advice provided to participants and
beneficiaries under the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et
seq.);
(B) requires that personalized investment
advice is provided in a fiduciary capacity that
is in the best interests of such participants
and beneficiaries;
(C) requires that, before receiving
investment advice, the compensation of
investment advisors and financial service
providers is clearly disclosed to such
participants and beneficiaries; and
(D) satisfies the requirements of paragraph
(3).
(2) Process.--The Secretary of Labor may issue a rule
pursuant to paragraph (1)--
(A) after coordination and consultation with
the Securities and Exchange Commission; and
(B) after considering surveys and data on
investment education and investment advice.
(3) Participant investment education; appraisals.--
The rule issued pursuant to paragraph (1) shall provide
standards of conduct for--
(A) participant investment education;
(B) access to reliable investment education
and investment advice to traditionally
underserved communities;
(C) reasonable compensation for investment
advisors and financial service providers; and
(D) fair market value appraisals of stock
held by employee stock ownership plans to
employers, participants, and beneficiaries
under the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1001 et seq.).
At the end of the bill, insert the following:
SEC. 4. REPORTS ON THE IMPACT OF PRACTICES OF PERSONS WHO PROVIDE
INVESTMENT ADVICE.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Labor shall report to
Congress on how certain practices of persons who provide
investment advice affect the standard of care exercised in
relation to investors.
(b) Report Requirements.--Such report shall--
(1) describe how the structure of compensation for
persons who provide investment advice affects the
standard of care exercised by such persons, including--
(A) practices involving fees paid from
investment vehicles to such persons; and
(B) other forms of compensation paid to such
persons that are not dependent upon the
investor's return;
(2) compare the standards of care exercised by
persons who provide investment advice to low-income and
middle-class investors with the standards of care
exercised by persons who provide investment advice to
high-income investors, and the effect such standards of
care have on the investment vehicles selected by
investors; and
(3) evaluate the extent to which the standard of care
used by persons who provide investment advice affects
the adequacy of investment returns to provide for
retirement for investors.