15 U.S.C. § 78pp: Investor Advisory Committee

Summary

Creates an Investor Advisory Committee inside the Commission. The committee must give advice and recommendations to the Commission about its priorities, rules, securities products, trading and fee issues, how disclosure works, and ways to protect and build confidence for investors. It can send findings and recommend changes in law. The committee must include the Investor Advocate, a state securities representative, a senior-citizen representative, and 10 to 20 appointees who represent individual and institutional investors, know investment issues, and have good reputations. Appointed members serve 4-year terms and are not made Commission employees just by joining the committee. The members pick a chair, vice chair, secretary, and assistant secretary for 3-year terms; the chair and vice chair may not work for an issuer. The committee must meet at least twice a year and when the Commission calls it. The chair must give written notice at least 2 weeks before meetings. Non–full-time federal members can be paid up to the daily equivalent of the annual rate for Executive Schedule level V (see section 5316 of title 5) and get travel pay under section 5703(b) of title 5. The Commission must provide needed staff. When the committee sends recommendations, the Commission must review them and promptly publish a statement assessing them and saying what action, if any, it will take. The Commission does not have to follow the committee. Chapter 10 of title 5 does not apply. Money may be appropriated as needed.

Title 15, §78pp

Commerce and Trade, Source: USLM XML via OLRC

(a)Establishment and purpose

(1)Establishment

There is established within the Commission the Investor Advisory Committee (referred to in this section as the “Committee”).

(2)Purpose

The Committee shall—

(A)advise and consult with the Commission on—

(i)regulatory priorities of the Commission;

(ii)issues relating to the regulation of securities products, trading strategies, and fee structures, and the effectiveness of disclosure;

(iii)initiatives to protect investor interest; and

(iv)initiatives to promote investor confidence and the integrity of the securities marketplace; and

(B)submit to the Commission such findings and recommendations as the Committee determines are appropriate, including recommendations for proposed legislative changes.

(b)Membership

(1)In general

The members of the Committee shall be—

(A)the Investor Advocate;

(B)a representative of State securities commissions;

(C)a representative of the interests of senior citizens; and

(D)not fewer than 10, and not more than 20, members appointed by the Commission, from among individuals who—

(i)represent the interests of individual equity and debt investors, including investors in mutual funds;

(ii)represent the interests of institutional investors, including the interests of pension funds and registered investment companies;

(iii)are knowledgeable about investment issues and decisions; and

(iv)have reputations of integrity.

(2)Term

Each member of the Committee appointed under paragraph (1)(B) shall serve for a term of 4 years.

(3)Members not Commission employees

Members appointed under paragraph (1)(B) shall not be deemed to be employees or agents of the Commission solely because of membership on the Committee.

(c)Chairman; vice chairman; secretary; assistant secretary

(1)In general

The members of the Committee shall elect, from among the members of the Committee—

(A)a chairman, who may not be employed by an issuer;

(B)a vice chairman, who may not be employed by an issuer;

(C)a secretary; and

(D)an assistant secretary.

(2)Term

Each member elected under paragraph (1) shall serve for a term of 3 years in the capacity for which the member was elected under paragraph (1).

(d)Meetings

(1)Frequency of meetings

The Committee shall meet—

(A)not less frequently than twice annually, at the call of the chairman of the Committee; and

(B)from time to time, at the call of the Commission.

(2)Notice

The chairman of the Committee shall give the members of the Committee written notice of each meeting, not later than 2 weeks before the date of the meeting.

(e)Compensation and travel expenses

Each member of the Committee who is not a full-time employee of the United States shall—

(1)be entitled to receive compensation at a rate not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level V of the Executive Schedule under section 5316 of title 5 for each day during which the member is engaged in the actual performance of the duties of the Committee; and

(2)while away from the home or regular place of business of the member in the performance of services for the Committee, be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703(b) of title 5.

(f)Staff

The Commission shall make available to the Committee such staff as the chairman of the Committee determines are necessary to carry out this section.

(g)Review by Commission

The Commission shall—

(1)review the findings and recommendations of the Committee; and

(2)each time the Committee submits a finding or recommendation to the Commission, promptly issue a public statement—

(A)assessing the finding or recommendation of the Committee; and

(B)disclosing the action, if any, the Commission intends to take with respect to the finding or recommendation.

(h)Committee findings

Nothing in this section shall require the Commission to agree to or act upon any finding or recommendation of the Committee.

(i)Chapter 10 of title 5

Chapter 10 of title 5 shall not apply with respect to the Committee and its activities.

(j)Authorization of appropriations

There is authorized to be appropriated to the Commission such sums as are necessary to carry out this section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (i). Pub. L. 117–286 substituted “Chapter 10 of title 5” for “Federal Advisory Committee Act” in heading and “Chapter 10 of title 5” for “The Federal Advisory Committee Act (5 U.S.C. App.)” in text.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking.

§78pp Investor Advisory Committee