Promoting Diverse Investment Advisers Act

HR 10198, the Promoting Diverse Investment Advisers Act, requires the Federal Reserve Board to set goals in its investment management agreements that prioritize using diverse individual-owned and controlled investment advisers and brokers/dealers. Specifically, it mandates that the Fed aim to maximize the use of firms owned (at least 51% by women, minorities, or veterans) or managed by such groups as intermediaries in its programs. The bill defines "diverse individual-owned and controlled firm" and requires the Fed to report on these goals in its annual report. This policy directly affects the Federal Reserve's investment agreements and the investment management industry by establishing new diversity requirements for firms working with the Fed.