H.R. 4738 would raise the burden of proof required for a security holder of a registered investment company to bring a civil action and to prove a breach of fiduciary duty by an investment advisor in certain circumstances.
Using information from the Securities and Exchange Commission (SEC), CBO estimates that implementing H.R. 4738 would have no significant effect on the agency’s costs or operations. Moreover, the SEC is authorized to collect fees sufficient to offset its annual appropriation; therefore, CBO estimates that the net effect on discretionary spending would be negligible, assuming appropriation actions consistent with that authority.
Enacting H.R. 4738 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 4738 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2029.
H.R. 4738 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
