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Bill > S327


US S327

Fair Access to Investment Research Act of 2017


summary

Introduced
02/07/2017
In Committee
03/09/2017
Crossed Over
09/12/2017
Passed
09/29/2017
Dead
Signed/Enacted/Adopted
10/06/2017

Introduced Session

115th Congress

Bill Summary

Fair Access to Investment Research Act of 2017 (Sec. 2) This bill directs the Securities and Exchange Commission (SEC) to establish and implement a "safe harbor" for certain investment fund research reports published by brokers and dealers. Such reports shall be deemed not to be "offers" under specified provisions of securities law, even if the broker or dealer participates in the registered offering of the investment fund's securities. In implementing the safe harbor, the SEC must prohibit a self-regulatory organization from maintaining or enforcing a rule that would prevent a member from: (1) publishing or distributing a covered investment fund research report solely because the member is also participating in a registered offering of the fund, or (2) participating in a registered offering of a covered investment fund solely because the member has published a research report about the fund. The bill restricts the SEC from conditioning the safe harbor upon specified requirements. The safe harbor shall generally not apply to reports about a business development company or a registered closed-end investment company published by a broker or dealer during a specified time frame.

AI Summary

This bill directs the Securities and Exchange Commission (SEC) to establish a "safe harbor" that would allow brokers and dealers to publish or distribute research reports on certain investment funds, even if the broker or dealer is also participating in a registered offering of the fund's securities. The safe harbor would deem these research reports as not constituting an "offer" under securities law. The bill also prohibits self-regulatory organizations from maintaining rules that would prevent a member from publishing or distributing a covered investment fund research report or from participating in a registered offering of a covered investment fund solely because the member has published a research report about the fund. The bill places some limits on the SEC's ability to condition the safe harbor, and provides for interim effectiveness of the safe harbor if the SEC does not act within the specified timeframe.

Committee Categories

Housing and Urban Affairs

Sponsors (3)

Last Action

Became Public Law No: 115-66. (TXT | PDF) (on 10/06/2017)

bill text


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