To enhance investor confidence by providing investors with easy online access to complete information about securities firms and their brokers.

February 27, 2003

Mr. RENZI (for himself, Mr. OXLEY, and Mr. BAKER) introduced the following bill; which was referred to the Committee on Financial Services

To enhance investor confidence by providing investors with easy online access to complete information about securities firms and their brokers.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Broker Accountability through Enhanced Transparency Act of 2003'.

SEC. 2. METHOD OF MAINTAINING REGISTRATION, DISCIPLINARY, AND OTHER DATA.

Subsection (i) of section 15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o-3(i)) is amended to read as follows:

`(i) OBLIGATION TO MAINTAIN REGISTRATION, DISCIPLINARY AND OTHER DATA-

`(1) MAINTENANCE OF SYSTEM TO RESPOND TO INQUIRIES- A registered securities association shall--

`(A) establish and maintain a system for collecting and retaining registration information, including disciplinary actions, on its members and their associated persons;

`(B) establish and maintain a toll-free telephone listing, and a readily accessible electronic or other process, to receive and promptly respond to inquiries regarding--

`(i) registration information, including disciplinary actions, on its members and their associated persons; and

`(ii) registration information that has been reported to the association by any registered national securities exchange involving its members and their associated persons; and

`(C) establish rules governing the process for making inquiries and the type and scope of information to be provided in response to such inquiries.

`(2) RECOVERY OF COSTS- Such association may charge persons, other than individual investors, reasonable fees for responses to such inquiries.

`(3) PROCESS FOR DISPUTED INFORMATION- Such an association shall adopt rules addressing the process for disputing the accuracy of information reported under this subsection.

`(4) LIMITATION OF LIABILITY- Such an association, or exchange reporting information to such an association, shall not have any liability to any person for any actions taken or omitted under this subsection.'.

SEC. 3. LIMITATION OF LIABILITY FOR FILING DEPOSITORIES.

Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3a) is amended by adding at the end the following:

`(f) LIMITATION OF LIABILITY- An entity designated by the Commission under subsection (d)(1) shall not have any liability to any person for any action taken or omitted under this section.'.

END