Promoting Diverse Investment Advisers Act

Finance and Financial Sector

house

senate

president

Introduced on November 21, 2024 by Joyce Beatty

Legislation Details

Amends the Federal Reserve Act to require the Board of Governors to set goals for using diverse investment advisers, brokers, and dealers in investment management agreements.
Applies specifically to agreements related to the Board’s unusual and exigent circumstances authority.
Mandates that investment managers utilize diverse individual-owned and controlled firms as intermediaries to the maximum extent possible.
Requires the Board to report on the goals set for diverse investment firms in its regular reporting.
Defines “diverse individual-owned and controlled firm” as one that is at least 51% owned by women, minorities, or veterans, or controlled by a majority of such individuals in its management.
Provides definitions for terms such as “broker,” “dealer,” “investment adviser,” “minority,” and “veteran” as per existing legislation.

Last updated 12/17/2024

Amends the Federal Reserve Act to require the Board of Governors to set goals for using diverse investment advisers, brokers, and dealers in investment management agreements.
Applies specifically to agreements related to the Board’s unusual and exigent circumstances authority.
Mandates that investment managers utilize diverse individual-owned and controlled firms as intermediaries to the maximum extent possible.
Requires the Board to report on the goals set for diverse investment firms in its regular reporting.
Defines “diverse individual-owned and controlled firm” as one that is at least 51% owned by women, minorities, or veterans, or controlled by a majority of such individuals in its management.
Provides definitions for terms such as “broker,” “dealer,” “investment adviser,” “minority,” and “veteran” as per existing legislation.