Sec. 501. Disclosure of fees and returns
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The Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ) is amended by adding at the end the following: In this section— the terms controlling private fund , private fund , and target firm have the meanings given the terms in section 3 of the Stop Wall Street Looting Act ; and the term expenditure for political activities — means— an independent expenditure, as that term is defined in section 301(17) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101(17) ); a disbursement for an electioneering communication, as that term is defined in section 304(f)(3) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30104(f)(3) ) or any other public communication, as defined in section 301(22) of that Act ( 52 U.S.C. 30101(22) ), that would be an electioneering communication if it were a broadcast, cable, or satellite communication; or dues or other payments to trade associations or organizations described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of that Code that are, or could reasonably be anticipated to be, used or transferred to another association or organization for the purposes described in clause
(i)or (ii); and does not include an expenditure for— direct lobbying efforts through registered lobbyists employed or hired by a controlling private fund; communications by a controlling private fund to— a partner of the fund or executive or administrative personnel with respect to the fund; or a family member of any individual described in subclause (I); or the establishment and administration of contributions to a separate segregated private fund to be utilized for political purposes by a controlling private fund. Not later than 1 year after the date of enactment of this section, the Commission shall issue final rules that require a controlling private fund to, using generally accepted accounting principles, annually report the following information with respect to that controlling private fund: The name, address, and vintage year of the fund. The name of each general partner of the fund. The name of each limited partner of the fund. A list of each entity with respect to which the fund owns an equity interest. In dollars, the total amount of regulatory assets under management by the fund. In dollars, the total amount of net assets under management by the fund. The percentage of fund equity contributed by the general partners of the fund and the percentage of fund equity contributed by the limited partners of the fund. Information on the debt owed by the fund, including— the dollar amount of total debt; the percentage of debt for which the creditor is a financial institution in the United States; the percentage of debt for which the creditor is a financial institution outside of the United States; the percentage of debt for which the creditor is an entity that is located in the United States and is not a financial institution; and the percentage of debt for which the creditor is an entity that is located outside of the United States and is not a financial institution. The gross performance of the fund during the year covered by the report. For the year covered by the report, the difference obtained by subtracting the financial gains of the fund by the fees that the general partners of the fund charged to the limited partners of the fund (commonly referred to as the performance net of fees ). For the year covered by the report, an annual financial statement, which shall include income statements, a balance sheet, and cash flow statements. The average debt-to-equity ratio of each target firm with respect to the fund and the debt-to-equity ratio of each such target firm. The total gross asset value of each target firm with respect to the fund and the gross asset value of each such target firm. The total amount of debt held by each target firm with respect to the fund and the total amount of debt held by each such target firm. The total amount of debt held by each target firm with respect to the fund that, as of the date on which the report is submitted, are categorized as liabilities, long-term liabilities, and payment in kind or zero coupon debt. The total number of target firms with respect to the fund that experienced default during the period covered by the report, including the name of any such target firm. The total number of the target firms with respect to the fund with respect to which a case was commenced under title 11, United States Code, during the period covered by the report, including the name of any such target firm. The percentage of the equity of the fund that is owned by— citizens of the United States; individuals who are not citizens of the United States; brokers or dealers; insurance companies; investment companies that are registered with the Commission under this Act; private funds and other investment companies not required to be registered with the Commission; nonprofit organizations; pension plans maintained by State or local governments (or an agency or instrumentality of either); pension plans maintained by nongovernmental employers; State or municipal government entities; banking or thrift institutions; sovereign wealth funds; and other investors. The total dollar amount of aggregate fees and expenses collected by the fund, the manager of the fund, or related parties from target firms for which the fund is a controlling private fund, which shall— be categorized by the type of fee; and include a description of the purpose of the fees. The total dollar amount of aggregate fees and expenses collected by the fund, the manager of the fund, or related parties from the limited partners of the fund, which shall— be categorized by the type of fee; and include a description of the purpose of the fees. The total carried interest claimed by the fund, the manager of the fund, or related parties and the total dollar amount of carried interest distributed to the limited partners of the fund. A description of, during the year covered by the report, any material changes in risk factors at the fund level, including— concentration risk; foreign exchange risk; and extra-financial risk, including environmental, social, and corporate governance risk. Disclosures that satisfy the Recommendations of the Task Force on Climate-related Financial Disclosures of the Financial Stability Board, as reported in June 2017. A description of the human capital management practices of the fund, including— fund workforce demographic information, including the number of full-time employees, the number of part-time employees, the number of contingent workers (including temporary and contract workers), and any policies or practices of the firm relating to subcontracting, outsourcing, and insourcing; fund workforce composition, including data on the diversity of that workforce, including the racial and gender composition of that workforce, and any policies and audits relating to the diversity of that workforce; and any incident of alleged workplace harassment during the 5 years preceding the year in which the report is submitted. A description of any expenditure for political activities made during the year preceding the year in which the report is submitted, including— the date on which each such expenditure for political activities was made; the amount of each such expenditure for political activities; if such an expenditure for political activities was made in support of, or in opposition to, a candidate, the name of the candidate, the office sought by the candidate, and the political party affiliation of the candidate; a summary of— each such expenditure for political activities that is in amount that is not less than $10,000; and each expenditure for political activities with respect to a particular election if the total amount of expenditures for political activities by the firm with respect to that election is in an amount that is not less than $10,000; a description of the specific nature of any expenditure for political activities that the firm intends to make for the year in which the report is submitted, to the extent that the specific nature is known to the firm; and the total amount of expenditures for political activities that the fund intends to make for the year in which the report is submitted. For the year preceding the year in which the report is submitted, the total amount of Federal support, if any, received by— the fund; and any entity with respect to which the fund is a beneficial owner, as that term is defined in section 5336(a)(3) of title 31, United States Code. Any other information that the Commission determines is necessary and appropriate for the protection of investors. The Commission shall, with respect to the rules issued under subsection (b)— review the rules once every 5 years; and revise the rules as necessary to ensure that the disclosures required under the rules reflect contemporary (as of the date on which the rules are revised) trends and characteristics with respect to private investment markets. Notwithstanding any provision of section 204 of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–4 ), the information disclosed under the rules issued under subsection
(b)shall be made available to the public. .