H.R. 10595
Stop Wall Street Looting Act
Official summary
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Text of the bill
I Corporate responsibility
II Anti-looting
III Protecting workers when companies go bankrupt
IV Closing tax loopholes
V Investor protection and market transparency
(a) Fiduciary duties under ERISA
(1) Plan assets. Section 401(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1101(b)(1)) is amended—
(A) by inserting or a private fund (as defined in section 3 of the Stop Wall Street Looting Act) before , the assets; and
(B) by inserting or such private fund, as applicable before the period at the end.
(2) Fiduciary obligations of fund managers. Section 3(21)(A) of such Act (29 U.S.C. 1002(21)) is amended by inserting , and, in the case of a plan which invests in a security issued by a private fund (as such term is defined in section 3 of the Stop Wall Street Looting Act), includes the manager of such private fund before the period at the end.
(b) Prohibition against waiving fiduciary duties. Section 211(h) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–11(h)) is amended—
(1) in paragraph (1), by striking and at the end;
(2) in paragraph (2), by striking the period at the end and inserting ; and; and
(3) by adding at the end the following:
(3) promulgate rules that prohibit an investment adviser from requiring any person to which the investment adviser provides investment advice, including a pension plan (as defined in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002)) that is subject to title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.), to, as a condition of the investment adviser providing that advice, sign a contract or other agreement in which that person waives a fiduciary duty owed by that person to another person.
(c) Applicability of benefits. The general partner of a controlling private fund that is a partnership may not provide any term or benefit to any limited partner of the fund unless the general partner provides that term or benefit to all limited partners of the fund.
VI Restrictions on securitizing risky corporate debt
VII Miscellaneous