§78pp — Title 15 Commerce and Trade | U.S. Code

Summary

Creates an Investor Advisory Committee inside the Commission to give advice and make recommendations. The Committee must advise the Commission on regulatory priorities, rules and practices for securities (like products, trading, fees, and disclosures), ways to protect investors, and ways to build investor confidence and market integrity. It can send findings and suggested actions, including proposed changes to laws. The Committee includes the Investor Advocate, a state securities commission representative, a representative for senior citizens, and 10 to 20 people the Commission appoints who represent individual and institutional investors, know about investing, and have good reputations. The state representative serves a 4-year term. The Committee picks a chair and vice chair (neither may work for an issuer), a secretary, and an assistant secretary; those officers serve 3-year terms. The Committee must meet at least twice a year and also when the Commission calls meetings, with written notice at least 2 weeks before a meeting. Non-full-time federal employees on the Committee may be paid up to the daily equivalent of the Executive Schedule level V rate (under 5 U.S.C. 5316) and get travel pay under 5 U.S.C. 5703(b). The Commission must give staff the chair thinks are needed, review the Committee’s recommendations, and promptly publish a statement assessing each recommendation and saying what action, if any, it plans to take. The Commission does not have to follow the Committee’s advice. Chapter 10 of title 5 does not apply, and funds are authorized as needed.

Title 15, §78pp

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)There is established within the Commission the Investor Advisory Committee (referred to in this section as the “Committee”).

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

(3)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)(1)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)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)(1)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)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)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) 11 So in original. Section 5703 of Title 5 does not contain a subsec. (b). of title 5.

(f)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)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)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 shall not apply with respect to the Committee and its activities.

(j)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