text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Fair Access to Investment Research 
  Act of 2016''.
  
  SEC. 2. SAFE HARBOR FOR INVESTMENT FUND RESEARCH.
  
      (a) Expansion of the Safe Harbor.--Not later than the end of the 
  45-day period beginning on the date of enactment of this Act, the 
  Securities and Exchange Commission shall propose, and not later than 
  the end of the 180-day period beginning on such date, the Commission 
  shall adopt, upon such terms, conditions, or requirements as the 
  Commission may determine necessary or appropriate in the public 
  interest, for the protection of investors, and for the promotion of 
  capital formation, revisions to section 230.139 of title 17, Code of 
  Federal Regulations, to provide that a covered investment fund research 
  report that is published or distributed by a broker or dealer--
              (1) shall be deemed, for purposes of sections 2(a)(10) and 
          5(c) of the Securities Act of 1933 (15 U.S.C. 77b(a)(10), 
          77e(c)), not to constitute an offer for sale or an offer to 
          sell a security that is the subject of an offering pursuant to 
          a registration statement that is effective, even if the broker 
          or dealer is participating or will participate in the 
          registered offering of the covered investment fund's 
          securities; and
              (2) shall be deemed to satisfy the conditions of paragraph 
          (a)(1) or (a)(2) of section 230.139 of title 17, Code of 
          Federal Regulations, or any successor provisions, for purposes 
          of the Commission's rules and regulations under the Federal 
          securities laws and the rules of any self-regulatory 
          organization.
      (b) Implementation of Safe Harbor.--In implementing the safe harbor 
  pursuant to subsection (a), the Commission shall--
              (1) not, in the case of a covered investment fund with a 
          class of securities in substantially continuous distribution, 
          condition the safe harbor on whether the broker's or dealer's 
          publication or distribution of a covered investment fund 
          research report constitutes such broker's or dealer's 
          initiation or reinitiation of research coverage on such covered 
          investment fund or its securities;
              (2) not--
                      (A) require the covered investment fund to have 
                  been registered as an investment company under the 
                  Investment Company Act of 1940 (15 U.S.C. 80a-1 et 
                  seq.) or subject to the reporting requirements of 
                  section 13 or 15(d) of the Securities Exchange Act of 
                  1934 (15 U.S.C. 78m, 78o(d)) for any period exceeding 
                  the period of time referenced under paragraph 
                  (a)(1)(i)(A)(1) of section 230.139 of title 17, Code of 
                  Federal Regulations; or
                      (B) impose a minimum float provision exceeding that 
                  referenced in paragraph (a)(1)(i)(A)(1)(i) of section 
                  230.139 of title 17, Code of Federal Regulations;
              (3) provide that a self-regulatory organization may not 
          maintain or enforce any rule that would--
                      (A) prohibit the ability of a member to publish or 
                  distribute a covered investment fund research report 
                  solely because the member is also participating in a 
                  registered offering or other distribution of any 
                  securities of such covered investment fund; or
                      (B) prohibit the ability of a member to participate 
                  in a registered offering or other distribution of 
                  securities of a covered investment fund solely because 
                  the member has published or distributed a covered 
                  investment fund research report about such covered 
                  investment fund or its securities; and
              (4) provide that a covered investment fund research report 
          shall not be subject to section 24(b) of the Investment Company 
          Act of 1940 (15 U.S.C. 80a-24(b)) or the rules and regulations 
          thereunder, except that such report may still be subject to 
          such section and the rules and regulations thereunder to the 
          extent that it is otherwise not subject to the content 
          standards in the rules of any self-regulatory organization 
          related to research reports, including those contained in the 
          rules governing communications with the public regarding 
          investment companies or substantially similar standards.
      (c) Rules of Construction.--Nothing in this Act shall be construed 
  as in any way limiting--
              (1) the applicability of the antifraud or antimanipulation 
          provisions of the Federal securities laws and rules adopted 
          thereunder to a covered investment fund research report, 
          including section 17 of the Securities Act of 1933 (15 U.S.C. 
          77q), section 34(b) of the Investment Company Act of 1940 (15 
          U.S.C. 80a-33(b)), and sections 9 and 10 of the Securities 
          Exchange Act of 1934 (15 U.S.C. 78i, 78j); or
              (2) the authority of any self-regulatory organization to 
          examine or supervise a member's practices in connection with 
          such member's publication or distribution of a covered 
          investment fund research report for compliance with applicable 
          provisions of the Federal securities laws or self-regulatory 
          organization rules related to research reports, including those 
          contained in rules governing communications with the public.
      (d) Interim Effectiveness of Safe Harbor.--
              (1) In general.--From and after the 180-day period 
          beginning on the date of enactment of this Act, if the 
          Commission has not adopted revisions to section 230.139 of 
          title 17, Code of Federal Regulations, as required by 
          subsection (a), and until such time as the Commission has done 
          so, a broker or dealer distributing or publishing a covered 
          investment fund research report after such date shall be able 
          to rely on the provisions of section 230.139 of title 17, Code 
          of Federal Regulations, and the broker or dealer's publication 
          of such report shall be deemed to satisfy the conditions of 
          paragraph (a)(1) or (a)(2) of that section if the covered 
          investment fund that is the subject of such report satisfies 
          the reporting history requirements (without regard to Form S-3 
          or Form F-3 eligibility) and minimum float provisions of such 
          subsections for purposes of the Commission's rules and 
          regulations under the Federal securities laws and the rules of 
          any self-regulatory organization, as if revised and implemented 
          in accordance with subsections (a) and (b).
              (2) Status of covered investment fund.--After such period 
          and until the Commission has adopted revisions to section 
          230.139 of title 17, Code of Federal Regulations, and FINRA has 
          revised rule 2210, for purposes of subsection (c)(7)(O) of such 
          rule, a covered investment fund shall be deemed to be a 
          security that is listed on a national securities exchange and 
          that is not subject to section 24(b) of the Investment Company 
          Act of 1940 (15 U.S.C. 80a-24(b)). Communications concerning 
          only covered investment funds that fall within the scope of 
          such section shall not be required to be filed with FINRA.
      (e) Definitions.--For purposes of this Act:
              (1) The term ``covered investment fund research report'' 
          means a research report published or distributed by a broker or 
          dealer about a covered investment fund or any securities issued 
          by the covered investment fund, but does not include a research 
          report to the extent that the research report is published or 
          distributed by the covered investment fund or any affiliate of 
          the covered investment fund.
              (2) The term ``covered investment fund'' means--
                      (A) an investment company registered under, or that 
                  has filed an election to be treated as a business 
                  development company under, the Investment Company Act 
                  of 1940 (15 U.S.C. 80a-1 et seq.) and that has filed a 
                  registration statement under the Securities Act of 1933 
                  (15 U.S.C. 77a et seq.) for the public offering of a 
                  class of its securities, which registration statement 
                  has been declared effective by the Commission; and
                      (B) a trust or other person--
                              (i) issuing securities in an offering 
                          registered under the Securities Act of 1933 and 
                          which class of securities is listed for trading 
                          on a national securities exchange;
                              (ii) the assets of which consist primarily 
                          of commodities, currencies, or derivative 
                          instruments that reference commodities or 
                          currencies, or interests in the foregoing; and
                              (iii) that provides in its registration 
                          statement under the Securities Act of 1933 that 
                          a class of its securities are purchased or 
                          redeemed, subject to conditions or limitations, 
                          for a ratable share of its assets.
              (3) The term ``FINRA'' means the Financial Industry 
          Regulatory Authority.
              (4) The term ``research report'' has the meaning given that 
          term under section 2(a)(3) of the Securities Act of 1933 (15 
          U.S.C. 77b(a)(3)), except that such term shall not include an 
          oral communication.
              (5) The term ``self-regulatory organization'' has the 
          meaning given to that term under section 3(a)(26) of the 
          Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)).
target: Fair Access to Investment Research Act of 2016 This bill directs the Securities and Exchange Commission (SEC) to revise a specified regulation to create a safe harbor for certain publications or distributions of research reports by brokers or dealers distributing securities. The revised regulation shall declare that a published or distributed investment fund research report shall not be deemed to constitute an offer for sale or an offer to sell a security that is the subject of the offering pursuant to an effective registration statement, even if the broker or dealer is participating or will participate in the registered offering of the covered investment fund's securities. The covered investment fund research report shall indeed be deemed to satisfy the regulation's requirements as well as those of any self-regulatory organization. The SEC shall not impose specified conditions and requirements when implementing the safe harbor.  Until the SEC has adopted such safe harbor revisions, and the Financial Industry Regulatory Authority (FINRA) has revised a related rule, a covered investment fund shall be deemed to be a security listed on a national securities exchange that is not subject to a certain filing requirement of the Investment Company Act of 1940. 
feat_title: Fair Access to Investment Research Act of 2016