---
kind: "section"
citation: "15 U.S.C. § 78pp"
title: "15"
title_heading: "Commerce and Trade"
number: "78pp"
heading: "Investor Advisory Committee"
release: "119-102"
url: "https://uscodex.org/usc/15/78pp"
units:
  - "Chapter 2B — Securities Exchanges"
---

# §78pp. Investor Advisory Committee

- (a) **Establishment and purpose—**
  - (1) **Establishment—** There is established within the [Commission](/usc/15/78c.md?p=a-15) the Investor [Advisory Committee](/usc/15/8801.md?p=1) (referred to in this section as the “[Committee](/usc/15/2921.md?p=1)”).
  - (2) **Purpose—** The [Committee](/usc/15/2921.md?p=1) shall—
    - (A) advise and consult with the [Commission](/usc/15/78c.md?p=a-15) on—
      - (i) regulatory priorities of the [Commission](/usc/15/78c.md?p=a-15);
      - (ii) issues relating to the regulation of [securities](/usc/15/78c.md?p=a-10) products, trading strategies, and fee structures, and the effectiveness of disclosure;
      - (iii) [initiatives](/usc/15/9401.md?p=5) to protect investor interest; and
      - (iv) [initiatives](/usc/15/9401.md?p=5) to promote investor confidence and the integrity of the [securities](/usc/15/78c.md?p=a-10) marketplace; and
    - (B) submit to the [Commission](/usc/15/78c.md?p=a-15) such findings and recommendations as the [Committee](/usc/15/2921.md?p=1) determines are appropriate, including recommendations for proposed legislative changes.
- (b) **Membership—**
  - (1) **In general—** The [members](/usc/15/78c.md?p=a-3-A) of the [Committee](/usc/15/2921.md?p=1) shall be—
    - (A) the Investor Advocate;
    - (B) a representative of [State](/usc/15/78c.md?p=a-16) [securities](/usc/15/78c.md?p=a-10) [commissions](/usc/15/78c.md?p=a-15);
    - (C) a representative of the interests of senior citizens; and
    - (D) not fewer than 10, and not more than 20, [members](/usc/15/78c.md?p=a-3-A) appointed by the [Commission](/usc/15/78c.md?p=a-15), from among individuals who—
      - (i) represent the interests of individual equity and debt investors, including investors in mutual funds;
      - (ii) represent the interests of institutional investors, including the interests of pension funds and registered [investment companies](/usc/15/78c.md?p=a-12-A-iii);
      - (iii) are knowledgeable about investment issues and decisions; and
      - (iv) have reputations of integrity.
  - (2) **Term—** Each [member](/usc/15/78c.md?p=a-3-A) of the [Committee](/usc/15/2921.md?p=1) appointed under [paragraph (1)(B)](#b-1-B) shall serve for a term of 4 years.
  - (3) **Members not Commission employees—** [Members](/usc/15/78c.md?p=a-3-A) appointed under [paragraph (1)(B)](#b-1-B) shall not be deemed to be employees or agents of the [Commission](/usc/15/78c.md?p=a-15) solely because of membership on the [Committee](/usc/15/2921.md?p=1).
- (c) **Chairman; vice chairman; secretary; assistant secretary—**
  - (1) **In general—** The [members](/usc/15/78c.md?p=a-3-A) of the [Committee](/usc/15/2921.md?p=1) shall elect, from among the [members](/usc/15/78c.md?p=a-3-A) of the [Committee](/usc/15/2921.md?p=1)—
    - (A) a chairman, who may not be employed by an [issuer](/usc/15/78c.md?p=a-8);
    - (B) a vice chairman, who may not be employed by an [issuer](/usc/15/78c.md?p=a-8);
    - (C) a secretary; and
    - (D) an assistant secretary.
  - (2) **Term—** Each [member](/usc/15/78c.md?p=a-3-A) elected under [paragraph (1)](#c-1) shall serve for a term of 3 years in the capacity for which the [member](/usc/15/78c.md?p=a-3-A) was elected under [paragraph (1)](#c-1).
- (d) **Meetings—**
  - (1) **Frequency of meetings—** The [Committee](/usc/15/2921.md?p=1) shall meet—
    - (A) not less frequently than twice annually, at the call of the chairman of the [Committee](/usc/15/2921.md?p=1); and
    - (B) from time to time, at the call of the [Commission](/usc/15/78c.md?p=a-15).
  - (2) **Notice—** The chairman of the [Committee](/usc/15/2921.md?p=1) shall give the [members](/usc/15/78c.md?p=a-3-A) of the [Committee](/usc/15/2921.md?p=1) written notice of each meeting, not later than 2 weeks before the date of the meeting.
- (e) **Compensation and travel expenses—** Each [member](/usc/15/78c.md?p=a-3-A) of the [Committee](/usc/15/2921.md?p=1) who is not a full-time employee of the United States shall—
  - (1) be entitled to receive compensation at a rate not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level V of the Executive Schedule under [section 5316 of title 5](/usc/5/5316.md) for each day during which the [member](/usc/15/78c.md?p=a-3-A) is engaged in the actual performance of the duties of the [Committee](/usc/15/2921.md?p=1); and
  - (2) while away from the home or regular place of business of the [member](/usc/15/78c.md?p=a-3-A) in the performance of services for the [Committee](/usc/15/2921.md?p=1), be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as [persons](/usc/15/78c.md?p=a-9) employed intermittently in the Government service are allowed expenses under section 5703(b)[^1] of [title 5](/usc/5.md).
- (f) **Staff—** The [Commission](/usc/15/78c.md?p=a-15) shall make available to the [Committee](/usc/15/2921.md?p=1) such staff as the chairman of the [Committee](/usc/15/2921.md?p=1) determines are necessary to carry out this section.
- (g) **Review by Commission—** The [Commission](/usc/15/78c.md?p=a-15) shall—
  - (1) review the findings and recommendations of the [Committee](/usc/15/2921.md?p=1); and
  - (2) each time the [Committee](/usc/15/2921.md?p=1) submits a finding or recommendation to the [Commission](/usc/15/78c.md?p=a-15), promptly issue a public statement—
    - (A) assessing the finding or recommendation of the [Committee](/usc/15/2921.md?p=1); and
    - (B) disclosing the action, if any, the [Commission](/usc/15/78c.md?p=a-15) intends to take with respect to the finding or recommendation.
- (h) **Committee findings—** Nothing in this section shall require the [Commission](/usc/15/78c.md?p=a-15) to agree to or act upon any finding or recommendation of the [Committee](/usc/15/2921.md?p=1).
- (i) **Chapter 10 of title 5—** [Chapter 10](/usc/5/chptI-ch10.md) of title 5 shall not apply with respect to the [Committee](/usc/15/2921.md?p=1) and its activities.
- (j) **Authorization of appropriations—** There is authorized to be appropriated to the [Commission](/usc/15/78c.md?p=a-15) such sums as are necessary to carry out this section.

## Footnotes

[^1]: So in original. Section 5703 of Title 5 does not contain a subsec. (b).

## Source credit

(June 6, 1934, ch. 404, title I, § 39, as added Pub. L. 111–203, title IX, § 911, July 21, 2010, 124 Stat. 1822; amended Pub. L. 117–286, § 4(a)(64), Dec. 27, 2022, 136 Stat. 4312.)

## Notes

### Editorial Notes

### Amendments

2022—Subsec. (i). Pub. L. 117–286 substituted “Chapter 10 of title 5” for “Federal Advisory Committee Act” in heading and “Chapter 10 of title 5” for “The Federal Advisory Committee Act (5 U.S.C. App.)” in text.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking.