I 115th CONGRESS 2d Session H. R. 4738 IN THE HOUSE OF REPRESENTATIVES January 8, 2018 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.

1. Short title This Act may be cited as the Mutual Fund Litigation Reform Act . 2. Complaint and burden of proof requirements for certain actions for breach of fiduciary duty Section 36(b) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–35(b) ) is amended by adding at the end the following: (7) In any such action brought by a security holder of a registered investment company on behalf of such company— (A) the complaint shall state with particularity all facts establishing a breach of fiduciary duty, and, if an allegation of any such facts is based on information and belief, the complaint shall state with particularity all facts on which that belief is formed; and (B) such security holder shall have the burden of proving a breach of fiduciary duty by clear and convincing evidence. .