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I
116TH CONGRESS
2D SESSION
H. R. 8188
To amend the Investment Company Act of 1940 to provide complaint and
burden of proof requirements for certain actions for breach of fiduciary
duty.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 8, 2020
Mr. EMMER introduced the following bill; which was referred to the Committee
on Financial Services, and in addition to the Committee on the Judiciary,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To amend the Investment Company Act of 1940 to provide
complaint and burden of proof requirements for certain
actions for breach of fiduciary duty.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Mutual Fund Litiga-
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tion Reform Act’’.
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•HR 8188 IH
SEC. 2. COMPLAINT AND BURDEN OF PROOF REQUIRE-
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MENTS FOR CERTAIN ACTIONS FOR BREACH
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OF FIDUCIARY DUTY.
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Section 36(b) of the Investment Company Act of
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1940 (15 U.S.C. 80a–35(b)) is amended by adding at the
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end the following:
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‘‘(7) In any such action brought by a security
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holder of a registered investment company on behalf
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of such company—
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‘‘(A) the complaint shall state with par-
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ticularity all facts establishing a breach of fidu-
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ciary duty, and, if an allegation of any such
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facts is based on information and belief, the
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complaint shall state with particularity all facts
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on which that belief is formed; and
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‘‘(B) such security holder shall have the
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burden of proving a breach of fiduciary duty by
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clear and convincing evidence.’’.
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Æ
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