Page:United States Statutes at Large Volume 124.djvu/1863

 124 STAT. 1837 PUBLIC LAW 111–203—JULY 21, 2010 SEC. 918. STUDY REGARDING MUTUAL FUND ADVERTISING. (a) IN GENERAL.—The Comptroller General of the United States shall conduct a study on mutual fund advertising to identify— (1) existing and proposed regulatory requirements for open- end investment company advertisements; (2) current marketing practices for the sale of open-end investment company shares, including the use of past perform- ance data, funds that have merged, and incubator funds; (3) the impact of such advertising on consumers; and (4) recommendations to improve investor protections in mutual fund advertising and additional information necessary to ensure that investors can make informed financial decisions when purchasing shares. (b) REPORT.—Not later than 18 months after the date of enact- ment of this Act, the Comptroller General of the United States shall submit a report on the results of the study conducted under subsection (a) to— (1) the Committee on Banking, Housing, and Urban Affairs of the United States Senate; and (2) the Committee on Financial Services of the House of Representatives. SEC. 919. CLARIFICATION OF COMMISSION AUTHORITY TO REQUIRE INVESTOR DISCLOSURES BEFORE PURCHASE OF INVEST- MENT PRODUCTS AND SERVICES. Section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended by adding at the end the following: ‘‘(n) DISCLOSURES TO RETAIL INVESTORS.— ‘‘(1) IN GENERAL.—Notwithstanding any other provision of the securities laws, the Commission may issue rules designating documents or information that shall be provided by a broker or dealer to a retail investor before the purchase of an invest- ment product or service by the retail investor. ‘‘(2) CONSIDERATIONS.—In developing any rules under para- graph (1), the Commission shall consider whether the rules will promote investor protection, efficiency, competition, and capital formation. ‘‘(3) FORM AND CONTENTS OF DOCUMENTS AND INFORMA- TION.—Any documents or information designated under a rule promulgated under paragraph (1) shall— ‘‘(A) be in a summary format; and ‘‘(B) contain clear and concise information about— ‘‘(i) investment objectives, strategies, costs, and risks; and ‘‘(ii) any compensation or other financial incentive received by a broker, dealer, or other intermediary in connection with the purchase of retail investment products.’’. SEC. 919A. STUDY ON CONFLICTS OF INTEREST. (a) IN GENERAL.—The Comptroller General of the United States shall conduct a study— (1) to identify and examine potential conflicts of interest that exist between the staffs of the investment banking and equity and fixed income securities analyst functions within the same firm; and