S. 418 — Military Personnel Financial Services Protection Act

[109th Congress Public Law 290]
[From the U.S. Government Publishing Office]


[DOCID: f:publ290.109]

[[Page 120 STAT. 1317]]

Public Law 109-290
109th Congress

                                 An Act


 
   To protect members of the Armed Forces from unscrupulous practices 
        regarding sales of insurance, financial, and investment 
             products. <<NOTE: Sept. 29, 2006 -  [S. 418]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Military Personnel 
Financial Services Protection Act. 10 USC 992 note.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Military Personnel 
Financial Services Protection Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Congressional findings.
Sec. 3. Definitions.
Sec. 4. Prohibition on future sales of periodic payment plans.
Sec. 5. Required disclosures regarding offers or sales of securities on 
           military installations.
Sec. 6. Method of maintaining broker and dealer registration, 
           disciplinary, and other data.
Sec. 7. Filing depositories for investment advisers.
Sec. 8. State insurance and securities jurisdiction on military 
           installations.
Sec. 9. Required development of military personnel protection standards 
           regarding insurance sales; administrative coordination.
Sec. 10. Required disclosures regarding life insurance products.
Sec. 11. Improving life insurance product standards.
Sec. 12. Required reporting of disciplinary actions.
Sec. 13. Reporting barred persons selling insurance or securities.
Sec. 14. Study and reports by Inspector General of the Department of 
           Defense.

SEC. 2. <<NOTE: 10 USC 992 note.>> CONGRESSIONAL FINDINGS.

    Congress finds that--
            (1) members of the Armed Forces perform great sacrifices in 
        protecting our Nation in the War on Terror;
            (2) the brave men and women in uniform deserve to be offered 
        first-rate financial products in order to provide for their 
        families and to save and invest for retirement;
            (3) members of the Armed Forces are being offered high-cost 
        securities and life insurance products by some financial 
        services companies engaging in abusive and misleading sales 
        practices;
            (4) one securities product offered to service members, known 
        as the ``mutual fund contractual plan'', largely disappeared 
        from the civilian market in the 1980s, due to excessive sales 
        charges;
            (5) with respect to a mutual fund contractual plan, a 50 
        percent sales commission is assessed against the first year of 
        contributions, despite an average commission on other securities 
        products of less than 6 percent on each sale;

[[Page 120 STAT. 1318]]

            (6) excessive sales charges allow abusive and misleading 
        sales practices in connection with mutual fund contractual plan;
            (7) certain life insurance products being offered to members 
        of the Armed Forces are improperly marketed as investment 
        products, providing minimal death benefits in exchange for 
        excessive premiums that are front-loaded in the first few years, 
        making them entirely inappropriate for most military personnel; 
        and
            (8) the need for regulation of the marketing and sale of 
        securities and life insurance products on military bases 
        necessitates Congressional action.

SEC. 3. <<NOTE: 10 USC 992 note.>> DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Life insurance product.--
                    (A) In general.--The term ``life insurance product'' 
                means any product, including individual and group life 
                insurance, funding agreements, and annuities, that 
                provides insurance for which the probabilities of the 
                duration of human life or the rate of mortality are an 
                element or condition of insurance.
                    (B) Included insurance.--The term ``life insurance 
                product'' includes the granting of--
                          (i) endowment benefits;
                          (ii) additional benefits in the event of death 
                      by accident or accidental means;
                          (iii) disability income benefits;
                          (iv) additional disability benefits that 
                      operate to safeguard the contract from lapse or to 
                      provide a special surrender value, or special 
                      benefit in the event of total and permanent 
                      disability;
                          (v) benefits that provide payment or 
                      reimbursement for long-term home health care, or 
                      long-term care in a nursing home or other related 
                      facility;
                          (vi) burial insurance; and
                          (vii) optional modes of settlement or proceeds 
                      of life insurance.
                    (C) Exclusions.--Such term does not include workers 
                compensation insurance, medical indemnity health 
                insurance, or property and casualty insurance.
            (2) NAIC.--The term ``NAIC'' means the National Association 
        of Insurance Commissioners (or any successor thereto).

SEC. 4. <<NOTE: 10 USC 992 note.>> PROHIBITION ON FUTURE SALES OF 
            PERIODIC PAYMENT PLANS.

    (a) Amendment.--Section 27 of the Investment Company Act of 1940 (15 
U.S.C. 80a-27) is amended by adding at the end the following new 
subsection:
    ``(j) Termination of Sales.--
            ``(1) Termination.--Effective 30 days after the date of 
        enactment of the Military Personnel Financial Services 
        Protection Act, it shall be unlawful, subject to subsection 
        (i)--
                    ``(A) for any registered investment company to issue 
                any periodic payment plan certificate; or
                    ``(B) for such company, or any depositor of or 
                underwriter for any such company, or any other person, 
                to sell such a certificate.

[[Page 120 STAT. 1319]]

            ``(2) No invalidation of existing certificates.--Paragraph 
        (1) shall not be construed to alter, invalidate, or otherwise 
        affect any rights or obligations, including rights of 
        redemption, under any periodic payment plan certificate issued 
        and sold before 30 days after such date of enactment.''.

    (b) Technical Amendment.--Section 27(i)(2)(B) of the Investment 
Company Act of 1940 (15 U.S.C. 80a-27(i)(2)(B)) is amended by striking 
``section 26(e)'' each place that term appears and inserting ``section 
26(f)''.
    (c) Report on Refunds, Sales Practices, and Revenues From Periodic 
Payment Plans.--Not later than 6 months after the date of enactment of 
this Act, the Securities and Exchange Commission shall submit to the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate, a report 
describing--
            (1) any measures taken by a broker or dealer registered with 
        the Securities and Exchange Commission pursuant to section 15(b) 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) to 
        voluntarily refund payments made by military service members on 
        any periodic payment plan certificate, and the amounts of such 
        refunds;
            (2) after such consultation with the Secretary of Defense, 
        as the Commission considers appropriate, the sales practices of 
        such brokers or dealers on military installations over the 5 
        years preceding the date of submission of the report and any 
        legislative or regulatory recommendations to improve such 
        practices; and
            (3) the revenues generated by such brokers or dealers in the 
        sales of periodic payment plan certificates over the 5 years 
        preceding the date of submission of the report, and the products 
        marketed by such brokers or dealers to replace the revenue 
        generated from the sales of periodic payment plan certificates 
        prohibited under subsection (a).

SEC. 5. <<NOTE: 10 USC 992 note.>> REQUIRED DISCLOSURES REGARDING OFFERS 
            OR SALES OF SECURITIES ON MILITARY INSTALLATIONS.

    Section 15A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
78o-3(b)) is amended by inserting immediately after paragraph (13) the 
following:
            ``(14) The rules of the association include provisions 
        governing the sales, or offers of sales, of securities on the 
        premises of any military installation to any member of the Armed 
        Forces or a dependent thereof, which rules require--
                    ``(A) the broker or dealer performing brokerage 
                services to clearly and conspicuously disclose to 
                potential investors--
                          ``(i) that the securities offered are not 
                      being offered or provided by the broker or dealer 
                      on behalf of the Federal Government, and that its 
                      offer is not sanctioned, recommended, or 
                      encouraged by the Federal Government; and
                          ``(ii) the identity of the registered broker-
                      dealer offering the securities;
                    ``(B) such broker or dealer to perform an 
                appropriate suitability determination, including 
                consideration of costs

[[Page 120 STAT. 1320]]

                and knowledge about securities, prior to making a 
                recommendation of a security to a member of the Armed 
                Forces or a dependent thereof; and
                    ``(C) that no person receive any referral fee or 
                incentive compensation in connection with a sale or 
                offer of sale of securities, unless such person is an 
                associated person of a registered broker or dealer and 
                is qualified pursuant to the rules of a self-regulatory 
                organization.''.

SEC. 6. <<NOTE: 10 USC 992 note.>> METHOD OF MAINTAINING BROKER AND 
            DEALER REGISTRATION, DISCIPLINARY, AND OTHER DATA.

    Section 15A(i) of the Securities Exchange Act of 1934 (15 U.S.C. 
78o-3(i)) is amended to read as follows:
    ``(i) Obligation To Maintain Registration, Disciplinary, and Other 
Data.--
            ``(1) Maintenance of system to respond to inquiries.--A 
        registered securities association shall--
                    ``(A) establish and maintain a system for collecting 
                and retaining registration information;
                    ``(B) <<NOTE: Communications and tele- 
                communications.>> establish and maintain a toll-free 
                telephone listing, and a readily accessible electronic 
                or other process, to receive and promptly respond to 
                inquiries regarding--
                          ``(i) registration information on its members 
                      and their associated persons; and
                          ``(ii) registration information on the members 
                      and their associated persons of any registered 
                      national securities exchange that uses the system 
                      described in subparagraph (A) for the registration 
                      of its members and their associated persons; and
                    ``(C) <<NOTE: Regulations.>> adopt rules governing 
                the process for making inquiries and the type, scope, 
                and presentation of information to be provided in 
                response to such inquiries in consultation with any 
                registered national securities exchange providing 
                information pursuant to subparagraph (B)(ii).
            ``(2) Recovery of costs.--A registered securities 
        association may charge persons making inquiries described in 
        paragraph (1)(B), other than individual investors, reasonable 
        fees for responses to such inquiries.
            ``(3) <<NOTE: Regulations.>> Process for disputed 
        information.--Each registered securities association shall adopt 
        rules establishing an administrative process for disputing the 
        accuracy of information provided in response to inquiries under 
        this subsection in consultation with any registered national 
        securities exchange providing information pursuant to paragraph 
        (1)(B)(ii).
            ``(4) Limitation on liability.--A registered securities 
        association, or an exchange reporting information to such an 
        association, shall not have any liability to any person for any 
        actions taken or omitted in good faith under this subsection.
            ``(5) Definition.--For purposes of this subsection, the term 
        `registration information' means the information reported in 
        connection with the registration or licensing of brokers and 
        dealers and their associated persons, including disciplinary 
        actions, regulatory, judicial, and arbitration proceedings, and 
        other information required by law, or exchange or association 
        rule, and the source and status of such information.''.

[[Page 120 STAT. 1321]]

SEC. 7. <<NOTE: 10 USC 992 note.>> FILING DEPOSITORIES FOR INVESTMENT 
            ADVISERS.

    (a) Investment Advisers.--Section 204 of the Investment Advisers Act 
of 1940 (15 U.S.C. 80b-4) is amended--
            (1) by striking ``Every investment'' and inserting the 
        following:

    ``(a) In General.--Every investment''; and
            (2) by adding at the end the following:

    ``(b) Filing Depositories.--The Commission may, by rule, require an 
investment adviser--
            ``(1) to file with the Commission any fee, application, 
        report, or notice required to be filed by this title or the 
        rules issued under this title through any entity designated by 
        the Commission for that purpose; and
            ``(2) to pay the reasonable costs associated with such 
        filing and the establishment and maintenance of the systems 
        required by subsection (c).

    ``(c) Access to Disciplinary and Other Information.--
            ``(1) Maintenance of system to respond to inquiries.--
                    ``(A) <<NOTE: Communication and tele- 
                communications.>> In general.--The Commission shall 
                require the entity designated by the Commission under 
                subsection (b)(1) to establish and maintain a toll-free 
                telephone listing, or a readily accessible electronic or 
                other process, to receive and promptly respond to 
                inquiries regarding registration information (including 
                disciplinary actions, regulatory, judicial, and 
                arbitration proceedings, and other information required 
                by law or rule to be reported) involving investment 
                advisers and persons associated with investment 
                advisers.
                    ``(B) Applicability.--This subsection shall apply to 
                any investment adviser (and the persons associated with 
                that adviser), whether the investment adviser is 
                registered with the Commission under section 203 or 
                regulated solely by a State, as described in section 
                203A.
            ``(2) Recovery of costs.--An entity designated by the 
        Commission under subsection (b)(1) may charge persons making 
        inquiries, other than individual investors, reasonable fees for 
        responses to inquiries described in paragraph (1).
            ``(3) Limitation on liability.--An entity designated by the 
        Commission under subsection (b)(1) shall not have any liability 
        to any person for any actions taken or omitted in good faith 
        under this subsection.''.

    (b) Conforming Amendments.--
            (1) Investment advisers act of 1940.--Section 203A of the 
        Investment Advisers Act of 1940 (15 U.S.C. 80b-3a) is amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d).
            (2) National securities markets improvement act of 1996.--
        Section 306 of the National Securities Markets Improvement Act 
        of 1996 (15 U.S.C. 80b-10, note) is repealed.

SEC. 8. <<NOTE: 10 USC 992 note.>> STATE INSURANCE AND SECURITIES 
            JURISDICTION ON MILITARY INSTALLATIONS.

    (a) <<NOTE: Applicability.>> Clarification of Jurisdiction.--Any 
provision of law, regulation, or order of a State with respect to 
regulating the business of insurance or securities shall apply to 
insurance or securities activities conducted on Federal land or 
facilities in the United


[[Page 120 STAT. 1322]]

States and abroad, including military installations, except to the 
extent that such law, regulation, or order--
            (1) directly conflicts with any applicable Federal law, 
        regulation, or authorized directive; or
            (2) would not apply if such activity were conducted on State 
        land.

    (b) Primary State Jurisdiction.--To the extent that multiple State 
laws would otherwise apply pursuant to subsection (a) to an insurance or 
securities activity of an individual or entity on Federal land or 
facilities, the State having the primary duty to regulate such activity 
and the laws of which shall apply to such activity in the case of a 
conflict shall be--
            (1) the State within which the Federal land or facility is 
        located; or
            (2) if the Federal land or facility is located outside of 
        the United States, the State in which--
                    (A) in the case of an individual engaged in the 
                business of insurance, such individual has been issued a 
                resident license;
                    (B) in the case of an entity engaged in the business 
                of insurance, such entity is domiciled;
                    (C) in the case of an individual engaged in the 
                offer or sale (or both) of securities, such individual 
                is registered or required to be registered to do 
                business or the person solicited by such individual 
                resides; or
                    (D) in the case of an entity engaged in the offer or 
                sale (or both) of securities, such entity is registered 
                or is required to be registered to do business or the 
                person solicited by such entity resides.

SEC. 9. <<NOTE: 10 USC 992 note.>> REQUIRED DEVELOPMENT OF MILITARY 
            PERSONNEL PROTECTION STANDARDS REGARDING INSURANCE SALES; 
            ADMINISTRATIVE COORDINATION.

    (a) State Standards.--Congress intends that--
            (1) the States collectively work with the Secretary of 
        Defense to ensure implementation of appropriate standards to 
        protect members of the Armed Forces from dishonest and predatory 
        insurance sales practices while on a military installation of 
        the United States (including installations located outside of 
        the United States); and
            (2) <<NOTE: Deadline.>> each State identify its role in 
        promoting the standards described in paragraph (1) in a uniform 
        manner, not later than 12 months after the date of enactment of 
        this Act.

    (b) State Report.--It is the sense of Congress that the NAIC should, 
after consultation with the Secretary of Defense and, not later than 12 
months after the date of enactment of this Act, conduct a study to 
determine the extent to which the States have met the requirement of 
subsection (a), and report the results of such study to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate.
    (c) Administrative Coordination; Sense of Congress.--It is the sense 
of the Congress that senior representatives of the Secretary of Defense, 
the Securities and Exchange Commission, and the NAIC should meet not 
less frequently than twice a year to coordinate their activities to 
implement this Act and monitor

[[Page 120 STAT. 1323]]

the enforcement of relevant regulations relating to the sale of 
financial products on military installations of the United States.

SEC. 10. <<NOTE: 10 USC 992 note.>> REQUIRED DISCLOSURES REGARDING LIFE 
            INSURANCE PRODUCTS.

    (a) Requirement.--Except as provided in subsection (e), no person 
may sell, or offer for sale, any life insurance product to any member of 
the Armed Forces or a dependent thereof on a military installation of 
the United States, unless a disclosure in accordance with this section 
is provided to such member or dependent at the time of the sale or 
offer.
    (b) Disclosure.--A disclosure in accordance with this section is a 
written disclosure that--
            (1) states that subsidized life insurance is available to 
        the member of the Armed Forces from the Federal Government under 
        the Servicemembers' Group Life Insurance program (also referred 
        to as ``SGLI''), under subchapter III of chapter 19 of title 38, 
        United States Code;
            (2) states the amount of insurance coverage available under 
        the SGLI program, together with the costs to the member of the 
        Armed Forces for such coverage;
            (3) states that the life insurance product that is the 
        subject of the disclosure is not offered or provided by the 
        Federal Government, and that the Federal Government has in no 
        way sanctioned, recommended, or encouraged the sale of the life 
        insurance product being offered;
            (4) fully discloses any terms and circumstances under which 
        amounts accumulated in a savings fund or savings feature under 
        the life insurance product that is the subject of the disclosure 
        may be diverted to pay, or reduced to offset, premiums due for 
        continuation of coverage under such product;
            (5) states that no person has received any referral fee or 
        incentive compensation in connection with the offer or sale of 
        the life insurance product, unless such person is a licensed 
        agent of the person engaged in the business of insurance that is 
        issuing such product;
            (6) is made in plain and readily understandable language and 
        in a type font at least as large as the font used for the 
        majority of the solicitation material used with respect to or 
        relating to the life insurance product; and
            (7) with respect to a sale or solicitation on Federal land 
        or facilities located outside of the United States, lists the 
        address and phone number at which consumer complaints are 
        received by the State insurance commissioner for the State 
        having the primary jurisdiction and duty to regulate the sale of 
        such life insurance products pursuant to section 8.

    (c) Voidability.--The sale of a life insurance product in violation 
of this section shall be voidable from its inception, at the sole option 
of the member of the Armed Forces, or dependent thereof, as applicable, 
to whom the product was sold.
    (d) Enforcement.--If it is determined by a Federal or State agency, 
or in a final court proceeding, that any person has intentionally 
violated, or willfully disregarded the provisions of, this section, in 
addition to any other penalty under applicable Federal or State law, 
such person shall be prohibited from further engaging in the business of 
insurance with respect to employees of the Federal Government on Federal 
land, except--

[[Page 120 STAT. 1324]]

            (1) with respect to existing policies; and
            (2) to the extent required by the Federal Government 
        pursuant to previous commitments.

    (e) Exceptions.--This section shall not apply to any life insurance 
product specifically contracted by or through the Federal Government.

SEC. 11. IMPROVING LIFE INSURANCE PRODUCT STANDARDS.

    (a) <<NOTE: Deadline. 10 USC 992 note.>> In General.--It is the 
sense of Congress that the NAIC should, after consultation with the 
Secretary of Defense, and not later than 6 months after the date of 
enactment of this Act, conduct a study and submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives on--
            (1) ways of improving the quality of and sale of life 
        insurance products sold on military installations of the United 
        States, which may include--
                    (A) limiting such sales authority to persons that 
                are certified as meeting appropriate best practices 
                procedures; and
                    (B) creating standards for products specifically 
                designed to meet the particular needs of members of the 
                Armed Forces, regardless of the sales location; and
            (2) the extent to which life insurance products marketed to 
        members of the Armed Forces comply with otherwise applicable 
        provisions of State law.

    (b) Conditional GAO Report.--If the NAIC does not submit the report 
as described in subsection (a), the Comptroller General of the United 
States shall--
            (1) study any proposals that have been made to improve the 
        quality of and sale of life insurance products sold on military 
        installations of the United States; and
            (2) not later than 6 months after the expiration of the 
        period referred to in subsection (a), submit a report on such 
        proposals to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services of 
        the House of Representatives.

SEC. 12. <<NOTE: 10 USC 992 note.>> REQUIRED REPORTING OF DISCIPLINARY 
            ACTIONS.

    (a) Reporting by Insurers.--Beginning <<NOTE: Effective date.>> 1 
year after the date of enactment of this Act, no insurer may enter into 
or renew a contractual relationship with any other person that sells or 
solicits the sale of any life insurance product on any military 
installation of the United States, unless the insurer has implemented a 
system to report to the State insurance commissioner of the State of 
domicile of the insurer and the State of residence of that other 
person--
            (1) any disciplinary action taken by any Federal or State 
        government entity with respect to sales or solicitations of life 
        insurance products on a military installation that the insurer 
        knows, or in the exercise of due diligence should have known, to 
        have been taken; and
            (2) any significant disciplinary action taken by the insurer 
        with respect to sales or solicitations of life insurance 
        products on a military installation of the United States.

    (b) Reporting by States.--It is the sense of Congress that, not 
later than 1 year after the date of enactment of this Act, the States 
should collectively implement a system to--

[[Page 120 STAT. 1325]]

            (1) receive reports of disciplinary actions taken against 
        persons that sell or solicit the sale of any life insurance 
        product on any military installation of the United States by 
        insurers or Federal or State government entities with respect to 
        such sales or solicitations; and
            (2) disseminate such information to all other States and to 
        the Secretary of Defense.

    (c) Definition.--As used in this section, the term ``insurer'' means 
a person engaged in the business of insurance.

SEC. 13. <<NOTE: Records. 10 USC 992 note.>> REPORTING BARRED PERSONS 
            SELLING INSURANCE OR SECURITIES.

    (a) Establishment.--The Secretary of Defense shall maintain a list 
of the name, address, and other appropriate information relating to 
persons engaged in the business of securities or insurance that have 
been barred or otherwise limited in any manner that is not generally 
applicable to all such type of persons, from any or all military 
installations of the United States, or that have engaged in any 
transaction that is prohibited by this Act.
    (b) Notice and Access.--The Secretary of Defense shall ensure that--
            (1) the appropriate Federal and State agencies responsible 
        for securities and insurance regulation are promptly notified 
        upon the inclusion in or removal from the list required by 
        subsection (a) of a person under the jurisdiction of one or more 
        of such agencies; and
            (2) the list is kept current and easily accessible--
                    (A) for use by such agencies; and
                    (B) for purposes of enforcing or considering any 
                such bar or limitation by the appropriate Federal 
                personnel, including commanders of military 
                installations.

    (c) Regulations.--
            (1) In general.--The Secretary of Defense shall issue 
        regulations in accordance with this subsection to provide for 
        the establishment and maintenance of the list required by this 
        section, including appropriate due process considerations.
            (2) Timing.--
                    (A) Proposed regulations.--
                Not <<NOTE: Deadline.>> later than the expiration of the 
                60-day period beginning on the date of enactment of this 
                Act, the Secretary of Defense shall prepare and submit 
                to the appropriate Committees of Congress a copy of the 
                regulations required by this subsection that are 
                proposed to be published for comment. <<NOTE: Federal 
                Register, publication.>> The Secretary may not publish 
                such regulations for comment in the Federal Register 
                until the expiration of the 15-day period beginning on 
                the date of such submission to the appropriate 
                Committees of Congress.
                    (B) Final regulations.--
                Not <<NOTE: Deadline.>> later than 90 days after the 
                date of enactment of this Act, the Secretary of Defense 
                shall submit to the appropriate Committees of Congress a 
                copy of the regulations under this section to be 
                published in final form.
                    (C) Effective date.--Final regulations under this 
                paragraph shall become effective 30 days after the date 
                of their submission to the appropriate Committees of 
                Congress under subparagraph (B).

[[Page 120 STAT. 1326]]

    (d) Definition.--For purposes of this section, the term 
``appropriate Committees of Congress'' means--
            (1) the Committee on Financial Services and the Committee on 
        Armed Services of the House of Representatives; and
            (2) the Committee on Banking, Housing, and Urban Affairs and 
        the Committee on Armed Services of the Senate.

SEC. 14. <<NOTE: 10 USC 992 note.>> STUDY AND REPORTS BY INSPECTOR 
            GENERAL OF THE DEPARTMENT OF DEFENSE.

    (a) Study.--The Inspector General of the Department of Defense shall 
conduct a study on the impact of Department of Defense Instruction 
1344.07 (as in effect on the date of enactment of this Act) and the 
reforms included in this Act on the quality and suitability of sales of 
securities and insurance products marketed or otherwise offered to 
members of the Armed Forces.
    (b) Reports.--Not later than 12 months after the date of enactment 
of this Act, the Inspector General of the Department of Defense shall 
submit an initial report on the results of the study conducted under 
subsection (a) to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives, and shall submit followup reports to those committees 
on December 31, 2008 and December 31, 2010.

    Approved September 29, 2006.

LEGISLATIVE HISTORY--S. 418 (H.R. 458):
---------------------------------------------------------------------------

SENATE REPORTS: No. 109-282 (Comm. on Banking, Housing, and Urban    
Affairs).
CONGRESSIONAL RECORD, Vol. 152 (2006):
            July 19, considered and passed Senate.
            Sept. 20, 21, considered and passed House.

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Military Personnel Financial Services Protection Act

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