Us Congress 2023-2024 Regular Session

Us Congress House Bill HB500 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	I
1	2		118THCONGRESS
2	3		1
3	4		STSESSION H. R. 500
4		-	AN ACT
	5	+	To amend the Investment Company Act of 1940 to postpone the date of
	6	+	payment or satisfaction upon redemption of certain securities in the
	7	+	case of the financial exploitation of specified adults, and for other pur-
	8	+	poses.
	9	+	IN THE HOUSE OF REPRESENTATIVES
	10	+	JANUARY25, 2023
	11	+	Mrs. W
	12	+	AGNER(for herself, Mr. GOTTHEIMER, Mr. STEIL, Mr. HUIZENGA, and
	13	+	Mr. G
	14	+	REENof Texas) introduced the following bill; which was referred
	15	+	to the Committee on Financial Services
	16	+	A BILL
5	17		To amend the Investment Company Act of 1940 to postpone
6	18		the date of payment or satisfaction upon redemption
7	19		of certain securities in the case of the financial exploi-
8	20		tation of specified adults, and for other purposes.
9	21		Be it enacted by the Senate and House of Representa-1
10		-	tives of the United States of America in Congress assembled, 2 2
11		-	•HR 500 EH
12		-	SECTION 1. SHORT TITLE. 1
13		-	This Act may be cited as the ‘‘Financial Exploitation 2
14		-	Prevention Act of 2023’’. 3
15		-	SEC. 2. REDEMPTION OF CERTAIN SECURITIES POST-4
16		-	PONED. 5
	22	+	tives of the United States of America in Congress assembled, 2
	23	+	SECTION 1. SHORT TITLE. 3
	24	+	This Act may be cited as the ‘‘Financial Exploitation 4
	25	+	Prevention Act of 2023’’. 5
	26	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	27	+	pbinns on DSKJLVW7X2PROD with $$_JOB 2
	28	+	•HR 500 IH
	29	+	SEC. 2. REDEMPTION OF CERTAIN SECURITIES POST-1
	30	+	PONED. 2
17	31		(a) I
18		-	NGENERAL.—Section 22 of the Investment 6
19		-	Company Act of 1940 (15 U.S.C. 80a–22) is amended by 7
20		-	adding at the end the following: 8
	32	+	NGENERAL.—Section 22 of the Investment 3
	33	+	Company Act of 1940 (15 U.S.C. 80a–22) is amended by 4
	34	+	adding at the end the following: 5
21	35		‘‘(h) R
22		-	EQUIREMENTSWITHRESPECT TONON-INSTI-9
23		-	TUTIONALDIRECTAT-FUNDACCOUNTS.— 10
	36	+	EQUIREMENTSWITHRESPECT TONON-INSTI-6
	37	+	TUTIONALDIRECTAT-FUNDACCOUNTS.— 7
24	38		‘‘(1) E
25		-	LECTION.— 11
	39	+	LECTION.— 8
26	40		‘‘(A) I
27		-	N GENERAL.—A registered open-end 12
28		-	investment company and a transfer agent de-13
29		-	scribed under paragraph (2) may elect to com-14
30		-	ply with the requirements under paragraph (2) 15
31		-	and subsection (i) by notifying the Commission 16
32		-	of such election. 17
	41	+	N GENERAL.—A registered open-end 9
	42	+	investment company and a transfer agent de-10
	43	+	scribed under paragraph (2) may elect to com-11
	44	+	ply with the requirements under paragraph (2) 12
	45	+	and subsection (i) by notifying the Commission 13
	46	+	of such election. 14
33	47		‘‘(B) E
34		-	FFECT OF ELECTION .—Paragraph 18
35		-	(2) and subsection (i) shall only apply to a reg-19
36		-	istered open-end investment company and a 20
37		-	transfer agent that have made the election 21
38		-	under subparagraph (A). 22
	48	+	FFECT OF ELECTION .—Paragraph 15
	49	+	(2) and subsection (i) shall only apply to a reg-16
	50	+	istered open-end investment company and a 17
	51	+	transfer agent that have made the election 18
	52	+	under subparagraph (A). 19
39	53		‘‘(2) R
40		-	EQUIREMENTS.—In the case of a cus-23
41		-	tomer who is a holder of a non-institutional account 24
42		-	held directly with a registered open-end investment 25
43		-	company and serviced by a transfer agent (a ‘direct- 26 3
44		-	•HR 500 EH
45		-	at-fund account’), the company and transfer agent 1
46		-	shall— 2
47		-	‘‘(A) request from such customer the name 3
48		-	and contact information of at least one indi-4
49		-	vidual who— 5
50		-	‘‘(i) is at the time of such request an 6
51		-	adult; and 7
52		-	‘‘(ii) may be contacted with respect to 8
53		-	such account; 9
54		-	‘‘(B) document and retain the information 10
55		-	received pursuant to subparagraph (A); and 11
56		-	‘‘(C) disclose to such customer in writing 12
57		-	(including through electronic delivery) that such 13
58		-	company or transfer agent may contact an indi-14
59		-	vidual specified pursuant to subparagraph (A) 15
60		-	with respect to the account of such customer 16
61		-	to— 17
62		-	‘‘(i) address possible financial exploi-18
63		-	tation of such customer; 19
64		-	‘‘(ii) confirm the contact information 20
65		-	or health status of the customer; or 21
66		-	‘‘(iii) identify any legal guardian, ex-22
67		-	ecutor, trustee, or holder of a power of at-23
68		-	torney of the customer. 24 4
69		-	•HR 500 EH
70		-	‘‘(i) REDEMPTION OF CERTAINSECURITIESPOST-1
71		-	PONED.— 2
72		-	‘‘(1) I
73		-	N GENERAL.—Notwithstanding subsection 3
74		-	(e), a registered open-end investment company or a 4
75		-	transfer agent acting on behalf of such company 5
76		-	may postpone the date of payment or satisfaction 6
77		-	upon redemption of any redeemable security in ac-7
78		-	cordance with its terms for more than seven days 8
79		-	after the tender of such security to such company or 9
80		-	its agent designated for that purpose for redemption 10
81		-	if such company or agent reasonably believes that— 11
82		-	‘‘(A) the redemption is requested by a se-12
83		-	curity holder who is a specified adult; and 13
84		-	‘‘(B) financial exploitation has occurred, is 14
85		-	occurring, or has been attempted with respect 15
86		-	to such redemption. 16
	54	+	EQUIREMENTS.—In the case of a cus-20
	55	+	tomer who is a holder of a non-institutional account 21
	56	+	held directly with a registered open-end investment 22
	57	+	company and serviced by a transfer agent (a ‘direct- 23
	58	+	at-fund account’), the company and transfer agent 24
	59	+	shall— 25
	60	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	61	+	pbinns on DSKJLVW7X2PROD with $$_JOB 3
	62	+	•HR 500 IH
	63	+	‘‘(A) request from such customer the name 1
	64	+	and contact information of at least one indi-2
	65	+	vidual who— 3
	66	+	‘‘(i) is at the time of such request an 4
	67	+	adult; and 5
	68	+	‘‘(ii) may be contacted with respect to 6
	69	+	such account; 7
	70	+	‘‘(B) document and retain the information 8
	71	+	received pursuant to subparagraph (A); and 9
	72	+	‘‘(C) disclose to such customer in writing 10
	73	+	(including through electronic delivery) that such 11
	74	+	company or transfer agent may contact an indi-12
	75	+	vidual specified pursuant to subparagraph (A) 13
	76	+	with respect to the account of such customer 14
	77	+	to— 15
	78	+	‘‘(i) address possible financial exploi-16
	79	+	tation of such customer; 17
	80	+	‘‘(ii) confirm the contact information 18
	81	+	or health status of the customer; or 19
	82	+	‘‘(iii) identify any legal guardian, ex-20
	83	+	ecutor, trustee, or holder of a power of at-21
	84	+	torney of the customer. 22
	85	+	‘‘(i) R
	86	+	EDEMPTION OF CERTAINSECURITIESPOST-23
	87	+	PONED.— 24
	88	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	89	+	pbinns on DSKJLVW7X2PROD with $$_JOB 4
	90	+	•HR 500 IH
	91	+	‘‘(1) IN GENERAL.—Notwithstanding subsection 1
	92	+	(e), a registered open-end investment company or a 2
	93	+	transfer agent acting on behalf of such company 3
	94	+	may postpone the date of payment or satisfaction 4
	95	+	upon redemption of any redeemable security in ac-5
	96	+	cordance with its terms for more than seven days 6
	97	+	after the tender of such security to such company or 7
	98	+	its agent designated for that purpose for redemption 8
	99	+	if such company or agent reasonably believes that— 9
	100	+	‘‘(A) the redemption is requested by a se-10
	101	+	curity holder who is a specified adult; and 11
	102	+	‘‘(B) financial exploitation has occurred, is 12
	103	+	occurring, or has been attempted with respect 13
	104	+	to such redemption. 14
87	105		‘‘(2) D
88		-	URATION.— 17
	106	+	URATION.— 15
89	107		‘‘(A) I
90		-	N GENERAL.—Except as provided in 18
91		-	subparagraphs (B) and (C), a registered open- 19
92		-	end investment company or a transfer agent 20
93		-	acting on behalf of such company may postpone 21
94		-	the date of payment or satisfaction upon re-22
95		-	demption of a redeemable security under para-23
96		-	graph (1) for a period of not more than 15 24
97		-	business days. 25 5
98		-	•HR 500 EH
99		-	‘‘(B) EXTENSION UPON DETERMINATION 1
100		-	OF EXPLOITATION.—The period described in 2
101		-	subparagraph (A) may be extended by an addi-3
102		-	tional 10 business days if the registered open- 4
103		-	end investment company or a transfer agent 5
104		-	acting on behalf of such company— 6
105		-	‘‘(i) reasonably believes that— 7
106		-	‘‘(I) the redemption is requested 8
107		-	by a security holder who is a specified 9
108		-	adult; and 10
109		-	‘‘(II) financial exploitation has 11
110		-	occurred, is occurring, or has been at-12
111		-	tempted with respect to such redemp-13
112		-	tion; 14
113		-	‘‘(ii) subject to subparagraph (D), not 15
114		-	later than 2 days after making a deter-16
115		-	mination under clause (i), notifies the indi-17
116		-	viduals specified by such security holder 18
117		-	under subsection (h)(2)(A) in writing (in-19
118		-	cluding through electronic delivery) of the 20
119		-	extension of the period described in sub-21
120		-	paragraph (A) under this subparagraph 22
121		-	and the reason for such extension; 23 6
122		-	•HR 500 EH
123		-	‘‘(iii) initiates an internal review of 1
124		-	the facts and circumstances relating to the 2
125		-	determination under clause (i); 3
126		-	‘‘(iv) holds amounts related to the de-4
127		-	layed payment or satisfaction upon re-5
128		-	demption of the redeemable security in a 6
129		-	demand deposit account; and 7
130		-	‘‘(v) documents and retains records 8
131		-	related to carrying out clause (iv) and in-9
132		-	cludes such records in the first required 10
133		-	account statement of the security holder 11
134		-	provided after the date on which the deter-12
135		-	mination is made under clause (i). 13
	108	+	N GENERAL.—Except as provided in 16
	109	+	subparagraphs (B) and (C), a registered open- 17
	110	+	end investment company or a transfer agent 18
	111	+	acting on behalf of such company may postpone 19
	112	+	the date of payment or satisfaction upon re-20
	113	+	demption of a redeemable security under para-21
	114	+	graph (1) for a period of not more than 15 22
	115	+	business days. 23
	116	+	‘‘(B) E
	117	+	XTENSION UPON DETERMINATION 24
	118	+	OF EXPLOITATION.—The period described in 25
	119	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	120	+	pbinns on DSKJLVW7X2PROD with $$_JOB 5
	121	+	•HR 500 IH
	122	+	subparagraph (A) may be extended by an addi-1
	123	+	tional 10 business days if the registered open- 2
	124	+	end investment company or a transfer agent 3
	125	+	acting on behalf of such company— 4
	126	+	‘‘(i) reasonably believes that— 5
	127	+	‘‘(I) the redemption is requested 6
	128	+	by a security holder who is a specified 7
	129	+	adult; and 8
	130	+	‘‘(II) financial exploitation has 9
	131	+	occurred, is occurring, or has been at-10
	132	+	tempted with respect to such redemp-11
	133	+	tion; 12
	134	+	‘‘(ii) subject to subparagraph (D), not 13
	135	+	later than 2 days after making a deter-14
	136	+	mination under clause (i), notifies the indi-15
	137	+	viduals specified by such security holder 16
	138	+	under subsection (h)(2)(A) in writing (in-17
	139	+	cluding through electronic delivery) of the 18
	140	+	extension of the period described in sub-19
	141	+	paragraph (A) under this subparagraph 20
	142	+	and the reason for such extension; 21
	143	+	‘‘(iii) initiates an internal review of 22
	144	+	the facts and circumstances relating to the 23
	145	+	determination under clause (i); 24
	146	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	147	+	pbinns on DSKJLVW7X2PROD with $$_JOB 6
	148	+	•HR 500 IH
	149	+	‘‘(iv) holds amounts related to the de-1
	150	+	layed payment or satisfaction upon re-2
	151	+	demption of the redeemable security in a 3
	152	+	demand deposit account; and 4
	153	+	‘‘(v) documents and retains records 5
	154	+	related to carrying out clause (iv) and in-6
	155	+	cludes such records in the first required 7
	156	+	account statement of the security holder 8
	157	+	provided after the date on which the deter-9
	158	+	mination is made under clause (i). 10
136	159		‘‘(C) E
137		-	XTENSION BY GOVERNMENT .—A 14
138		-	State regulator, administrative agency of com-15
139		-	petent jurisdiction, or court of competent juris-16
140		-	diction may extend the period described in sub-17
141		-	paragraph (A). 18
	160	+	XTENSION BY GOVERNMENT .—A 11
	161	+	State regulator, administrative agency of com-12
	162	+	petent jurisdiction, or court of competent juris-13
	163	+	diction may extend the period described in sub-14
	164	+	paragraph (A). 15
142	165		‘‘(D) N
143		-	OTIFICATION.— 19
	166	+	OTIFICATION.— 16
144	167		‘‘(i) E
145		-	XCEPTION.—Subparagraph 20
146		-	(B)(ii) shall not apply if a registered open- 21
147		-	end investment company or transfer agent 22
148		-	acting on behalf of such company reason-23
149		-	ably believes that an individual required to 24
150		-	be notified under such subparagraph is, 25 7
151		-	•HR 500 EH
152		-	has been, or will subject the security holder 1
153		-	who identified such individual under sub-2
154		-	section (h)(2)(A) to financial exploitation. 3
155		-	‘‘(ii) R
156		-	EASONABLE EFFORTS .—An 4
157		-	open-end investment company or transfer 5
158		-	agent acting on behalf of such company 6
159		-	shall be considered in compliance with sub-7
160		-	paragraph (B)(ii) if such company or 8
161		-	transfer agent makes a reasonable effort to 9
162		-	contact the individuals specified by a secu-10
163		-	rity holder under subsection (h)(2)(A). 11
	168	+	XCEPTION.—Subparagraph 17
	169	+	(B)(ii) shall not apply if a registered open- 18
	170	+	end investment company or transfer agent 19
	171	+	acting on behalf of such company reason-20
	172	+	ably believes that an individual required to 21
	173	+	be notified under such subparagraph is, 22
	174	+	has been, or will subject the security holder 23
	175	+	who identified such individual under sub-24
	176	+	section (h)(2)(A) to financial exploitation. 25
	177	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	178	+	pbinns on DSKJLVW7X2PROD with $$_JOB 7
	179	+	•HR 500 IH
	180	+	‘‘(ii) REASONABLE EFFORTS .—An 1
	181	+	open-end investment company or transfer 2
	182	+	agent acting on behalf of such company 3
	183	+	shall be considered in compliance with sub-4
	184	+	paragraph (B)(ii) if such company or 5
	185	+	transfer agent makes a reasonable effort to 6
	186	+	contact the individuals specified by a secu-7
	187	+	rity holder under subsection (h)(2)(A). 8
164	188		‘‘(E) I
165		-	NTERNAL PROCEDURES .—An open- 12
166		-	end investment company or transfer agent act-13
167		-	ing on behalf of such company shall establish 14
168		-	procedures to carry out the requirements under 15
169		-	this subsection, including procedures— 16
170		-	‘‘(i) related to the identification and 17
171		-	reporting of matters related to the finan-18
172		-	cial exploitation of specified adults; 19
173		-	‘‘(ii) to determine whether to release 20
174		-	or reinvest delayed redemption proceeds, 21
175		-	taking into account the facts and cir-22
176		-	cumstances of each case, should the inter-23
177		-	nal review under subparagraph (B)(iii) 24 8
178		-	•HR 500 EH
179		-	support the reasonable belief described in 1
180		-	subparagraph (B)(i); 2
181		-	‘‘(iii) identifying each employee of the 3
182		-	company or transfer agent with authority 4
183		-	to establish, extend, or terminate a period 5
184		-	described in paragraph (1) or subpara-6
185		-	graph (A); 7
186		-	‘‘(iv) in the case of a transfer agent, 8
187		-	that are reasonably designed to ensure that 9
188		-	the employees of such transfer agent com-10
189		-	ply with this subsection; and 11
190		-	‘‘(v) in the case of an open-end invest-12
191		-	ment company, establishing periodic re-13
192		-	porting requirements under which a trans-14
193		-	fer agent acting on behalf of such company 15
194		-	shall notify such company of— 16
195		-	‘‘(I) each extension under sub-17
196		-	paragraph (B) authorized by such 18
197		-	transfer agent; 19
198		-	‘‘(II) each finding by the transfer 20
199		-	agent under subparagraph (B)(i); 21
200		-	‘‘(III) each notification under 22
201		-	subparagraph (B)(ii) carried out by 23
202		-	such transfer agent; and 24 9
203		-	•HR 500 EH
204		-	‘‘(IV) the results of each internal 1
205		-	review initiated by the transfer agent 2
206		-	under subparagraph (B)(iii). 3
	189	+	NTERNAL PROCEDURES .—An open- 9
	190	+	end investment company or transfer agent act-10
	191	+	ing on behalf of such company shall establish 11
	192	+	procedures to carry out the requirements under 12
	193	+	this subsection, including procedures— 13
	194	+	‘‘(i) related to the identification and 14
	195	+	reporting of matters related to the finan-15
	196	+	cial exploitation of specified adults; 16
	197	+	‘‘(ii) to determine whether to release 17
	198	+	or reinvest delayed redemption proceeds, 18
	199	+	taking into account the facts and cir-19
	200	+	cumstances of each case, should the inter-20
	201	+	nal review under subparagraph (B)(iii) 21
	202	+	support the reasonable belief described in 22
	203	+	subparagraph (B)(i); 23
	204	+	‘‘(iii) identifying each employee of the 24
	205	+	company or transfer agent with authority 25
	206	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	207	+	pbinns on DSKJLVW7X2PROD with $$_JOB 8
	208	+	•HR 500 IH
	209	+	to establish, extend, or terminate a period 1
	210	+	described in paragraph (1) or subpara-2
	211	+	graph (A); 3
	212	+	‘‘(iv) in the case of a transfer agent, 4
	213	+	that are reasonably designed to ensure that 5
	214	+	the employees of such transfer agent com-6
	215	+	ply with this subsection; and 7
	216	+	‘‘(v) in the case of an open-end invest-8
	217	+	ment company, establishing periodic re-9
	218	+	porting requirements under which a trans-10
	219	+	fer agent acting on behalf of such company 11
	220	+	shall notify such company of— 12
	221	+	‘‘(I) each extension under sub-13
	222	+	paragraph (B) authorized by such 14
	223	+	transfer agent; 15
	224	+	‘‘(II) each finding by the transfer 16
	225	+	agent under subparagraph (B)(i); 17
	226	+	‘‘(III) each notification under 18
	227	+	subparagraph (B)(ii) carried out by 19
	228	+	such transfer agent; and 20
	229	+	‘‘(IV) the results of each internal 21
	230	+	review initiated by the transfer agent 22
	231	+	under subparagraph (B)(iii). 23
207	232		‘‘(F) I
208		-	NFORMATION INCLUDED IN CERTAIN 4
209		-	STATEMENTS.—An open-end investment com-5
210		-	pany shall include in each prospectus or state-6
211		-	ment of additional information a notification 7
212		-	that the company or transfer agent acting on 8
213		-	behalf of such company may postpone redemp-9
214		-	tion of certain securities under this subsection. 10
	233	+	NFORMATION INCLUDED IN CERTAIN 24
	234	+	STATEMENTS.—An open-end investment com-25
	235	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	236	+	pbinns on DSKJLVW7X2PROD with $$_JOB 9
	237	+	•HR 500 IH
	238	+	pany shall include in each prospectus or state-1
	239	+	ment of additional information a notification 2
	240	+	that the company or transfer agent acting on 3
	241	+	behalf of such company may postpone redemp-4
	242	+	tion of certain securities under this subsection. 5
215	243		‘‘(G) R
216		-	ECORD RETENTION .—An open-end 11
217		-	investment company or transfer agent acting on 12
218		-	behalf of such company shall— 13
219		-	‘‘(i) document and retain records of— 14
220		-	‘‘(I) each postponement of re-15
221		-	demption under subparagraph (A), 16
222		-	(B), and (C); 17
223		-	‘‘(II) each finding under subpara-18
224		-	graph (B)(i); 19
225		-	‘‘(III) the name and position of 20
226		-	each employee described in subpara-21
227		-	graph (E)(iii); 22
228		-	‘‘(IV) each notification carried 23
229		-	out under subparagraph (B)(ii); and 24 10
230		-	•HR 500 EH
231		-	‘‘(V) the results of each internal 1
232		-	review initiated under subparagraph 2
233		-	(B)(iii); and 3
234		-	‘‘(ii) make such records available to 4
235		-	the Commission at the request of the Com-5
236		-	mission. 6
237		-	‘‘(3) S
238		-	PECIFIED ADULT DEFINED .—In this sub-7
239		-	section, the term ‘specified adult’ means— 8
240		-	‘‘(A) an individual age 65 or older; or 9
241		-	‘‘(B) an individual age 18 or older who a 10
242		-	registered open-end investment company or a 11
243		-	transfer agent acting on behalf of such com-12
244		-	pany reasonably believes has a mental or phys-13
245		-	ical impairment that renders the individual un-14
246		-	able to protect the individual’s own interests.’’. 15
	244	+	ECORD RETENTION .—An open-end 6
	245	+	investment company or transfer agent acting on 7
	246	+	behalf of such company shall— 8
	247	+	‘‘(i) document and retain records of— 9
	248	+	‘‘(I) each postponement of re-10
	249	+	demption under subparagraph (A), 11
	250	+	(B), and (C); 12
	251	+	‘‘(II) each finding under subpara-13
	252	+	graph (B)(i); 14
	253	+	‘‘(III) the name and position of 15
	254	+	each employee described in subpara-16
	255	+	graph (E)(iii); 17
	256	+	‘‘(IV) each notification carried 18
	257	+	out under subparagraph (B)(ii); and 19
	258	+	‘‘(V) the results of each internal 20
	259	+	review initiated under subparagraph 21
	260	+	(B)(iii); and 22
	261	+	‘‘(ii) make such records available to 23
	262	+	the Commission at the request of the Com-24
	263	+	mission. 25
	264	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	265	+	pbinns on DSKJLVW7X2PROD with $$_JOB 10
	266	+	•HR 500 IH
	267	+	‘‘(3) SPECIFIED ADULT DEFINED .—In this sub-1
	268	+	section, the term ‘specified adult’ means— 2
	269	+	‘‘(A) an individual age 65 or older; or 3
	270	+	‘‘(B) an individual age 18 or older who a 4
	271	+	registered open-end investment company or a 5
	272	+	transfer agent acting on behalf of such com-6
	273	+	pany reasonably believes has a mental or phys-7
	274	+	ical impairment that renders the individual un-8
	275	+	able to protect the individual’s own interests.’’. 9
247	276		(b) R
248		-	ECOMMENDATIONS .— 16
	277	+	ECOMMENDATIONS .— 10
249	278		(1) I
250		-	N GENERAL.—Not later than 1 year after 17
251		-	the date of the enactment of this section, the Securi-18
252		-	ties and Exchange Commission, in consultation with 19
253		-	the entities specified in paragraph (2), shall submit 20
254		-	to Congress a report that includes recommendations 21
255		-	regarding the regulatory and legislative changes nec-22
256		-	essary to address the financial exploitation of secu-23
257		-	rity holders who are specified adults (as defined in 24
258		-	subsection (i)(3) of section 22 of the Investment 25 11
259		-	•HR 500 EH
260		-	Company Act of 1940 (15 U.S.C. 80a–22), as added 1
261		-	by this section). 2
	279	+	N GENERAL.—Not later than 1 year after 11
	280	+	the date of the enactment of this section, the Securi-12
	281	+	ties and Exchange Commission, in consultation with 13
	282	+	the entities specified in paragraph (2), shall submit 14
	283	+	to Congress a report that includes recommendations 15
	284	+	regarding the regulatory and legislative changes nec-16
	285	+	essary to address the financial exploitation of secu-17
	286	+	rity holders who are specified adults (as defined in 18
	287	+	subsection (i)(3) of section 22 of the Investment 19
	288	+	Company Act of 1940 (15 U.S.C. 80a–22), as added 20
	289	+	by this section). 21
262	290		(2) C
263		-	ONSULTATION.—The entities specified in 3
264		-	this paragraph are as follows: 4
265		-	(A) The Commodity Futures Trading 5
266		-	Commission. 6
267		-	(B) The Director of the Bureau of Con-7
268		-	sumer Financial Protection. 8
269		-	(C) The Financial Industry Regulatory Au-9
270		-	thority. 10
271		-	(D) The North American Securities Ad-11
272		-	ministrators Association. 12
273		-	(E) The Board of Governors of the Fed-13
274		-	eral Reserve System. 14
275		-	(F) The Comptroller of the Currency. 15
276		-	(G) The Federal Deposit Insurance Cor-16
277		-	poration. 17
278		-	Passed the House of Representatives January 30,
279		-	2023.
280		-	Attest:
281		-	Clerk. 118
282		-	TH
283		-	CONGRESS
284		-	1
285		-	ST
286		-	S
287		-	ESSION
288		-
289		-	H. R. 500
290		-	AN ACT
291		-	To amend the Investment Company Act of 1940 to
292		-	postpone the date of payment or satisfaction
293		-	upon redemption of certain securities in the case
294		-	of the financial exploitation of specified adults,
295		-	and for other purposes.
	291	+	ONSULTATION.—The entities specified in 22
	292	+	this paragraph are as follows: 23
	293	+	(A) The Commodity Futures Trading 24
	294	+	Commission. 25
	295	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H500.IH H500
	296	+	pbinns on DSKJLVW7X2PROD with $$_JOB 11
	297	+	•HR 500 IH
	298	+	(B) The Director of the Bureau of Con-1
	299	+	sumer Financial Protection. 2
	300	+	(C) The Financial Industry Regulatory Au-3
	301	+	thority. 4
	302	+	(D) The North American Securities Ad-5
	303	+	ministrators Association. 6
	304	+	(E) The Board of Governors of the Fed-7
	305	+	eral Reserve System. 8
	306	+	(F) The Comptroller of the Currency. 9
	307	+	(G) The Federal Deposit Insurance Cor-10
	308	+	poration. 11
	309	+	Æ
	310	+	VerDate Sep 11 2014 21:32 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\H500.IH H500
	311	+	pbinns on DSKJLVW7X2PROD with $$_JOB