COLLECTION OF SYSTEMIC RISK DATA; REPORTS; EXAMINATIONS; DISCLOSURES.

SEC. 404. COLLECTION OF SYSTEMIC RISK DATA; REPORTS; EXAMINATIONS; DISCLOSURES. Section 204 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–4) is amended—(1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and(2) by inserting after subsection (a) the following:“(b) Records and Reports of Private Funds.—“(1) In general.—The Commission may require any investment adviser registered under this title—“(A) to maintain such records of, and file with the Commission such reports regarding, private funds advised 124 STAT. 1572 by the investment adviser, as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk by the Financial Stability Oversight Council (in this subsection referred to as the ‘Council’); and“(B) to provide or make available to the Council those reports or records or the information contained therein.“(2) Treatment of records.—The records and reports of any private fund to which an investment adviser registered under this title provides investment advice shall be deemed to be the records and reports of the investment adviser.“(3) Required information.—The records and reports required to be maintained by an investment adviser and subject to inspection by the Commission under this subsection shall include, for each private fund advised by the investment adviser, a description of—“(A) the amount of assets under management and use of leverage, including off-balance-sheet leverage;“(B) counterparty credit risk exposure;“(C) trading and investment positions;“(D) valuation policies and practices of the fund;“(E) types of assets held;“(F) side arrangements or side letters, whereby certain investors in a fund obtain more favorable rights or entitlements than other investors;“(G) trading practices; and“(H) such other information as the Commission, in consultation with the Council, determines is necessary and appropriate in the public interest and for the protection of investors or for the assessment of systemic risk, which may include the establishment of different reporting requirements for different classes of fund advisers, based on the type or size of private fund being advised.“(4) Maintenance of records.—An investment adviser registered under this title shall maintain such records of private funds advised by the investment adviser for such period or periods as the Commission, by rule, may prescribe as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk.“(5) Filing of records.—The Commission shall issue rules requiring each investment adviser to a private fund to file reports containing such information as the Commission deems necessary and appropriate in the public interest and for the protection of investors or for the assessment of systemic risk.“(6) Examination of records.—“(A) Periodic and special examinations.—The Commission—“(i) shall conduct periodic inspections of the records of private funds maintained by an investment adviser registered under this title in accordance with a schedule established by the Commission; and“(ii) may conduct at any time and from time to time such additional, special, and other examinations as the Commission may prescribe as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk.124 STAT. 1573“(B) Availability of records.—An investment adviser registered under this title shall make available to the Commission any copies or extracts from such records as may be prepared without undue effort, expense, or delay, as the Commission or its representatives may reasonably request.“(7) Information sharing.—“(A) In general.—The Commission shall make available to the Council copies of all reports, documents, records, and information filed with or provided to the Commission by an investment adviser under this subsection as the Council may consider necessary for the purpose of assessing the systemic risk posed by a private fund.“(B) Confidentiality.—The Council shall maintain the confidentiality of information received under this paragraph in all such reports, documents, records, and information, in a manner consistent with the level of confidentiality established for the Commission pursuant to paragraph (8). The Council shall be exempt from section 552 of title 5, United States Code, with respect to any information in any report, document, record, or information made available, to the Council under this subsection.”.“(8) Commission confidentiality of reports.—Notwithstanding any other provision of law, the Commission may not be compelled to disclose any report or information contained therein required to be filed with the Commission under this subsection, except that nothing in this subsection authorizes the Commission—“(A) to withhold information from Congress, upon an agreement of confidentiality; or“(B) prevent the Commission from complying with—“(i) a request for information from any other Federal department or agency or any self-regulatory organization requesting the report or information for purposes within the scope of its jurisdiction; or“(ii) an order of a court of the United States in an action brought by the United States or the Commission.“(9) Other recipients confidentiality.—Any department, agency, or self-regulatory organization that receives reports or information from the Commission under this subsection shall maintain the confidentiality of such reports, documents, records, and information in a manner consistent with the level of confidentiality established for the Commission under paragraph (8).“(10) Public information exception.—“(A) In general.—The Commission, the Council, and any other department, agency, or self-regulatory organization that receives information, reports, documents, records, or information from the Commission under this subsection, shall be exempt from the provisions of section 552 of title 5, United States Code, with respect to any such report, document, record, or information. Any proprietary information of an investment adviser ascertained by the Commission from any report required to be filed with the Commission pursuant to this subsection shall be subject to the same limitations on public disclosure as any facts 124 STAT. 1574 ascertained during an examination, as provided by section 210(b) of this title.“(B) Proprietary information.—For purposes of this paragraph, proprietary information includes sensitive, non-public information regarding—“(i) the investment or trading strategies of the investment adviser;“(ii) analytical or research methodologies;“(iii) trading data;“(iv) computer hardware or software containing intellectual property; and“(v) any additional information that the Commission determines to be proprietary.“(11) Annual report to congress.—The Commission shall report annually to Congress on how the Commission has used the data collected pursuant to this subsection to monitor the markets for the protection of investors and the integrity of the markets.”.