PUBLIC LAW 104-62—DEC. 8, 1995 109 STAT. 685 of a charitable organization and receives no commission or other special compensation based on the number or the value of donations collected for the fund.". (d) CONFORMING AMENDMENT.— Section 12(g)(2)(D) of such Act (15 U.S.C. 781(g)(2)(D)) is amended by inserting before the period "; or any security of a fund that is excluded from the definition of an investment company under section 3(c)(10)(B) of the Investment Company Act of 1940". SEC. 5. AMENDMENT OF THE INVESTMENT ADVISERS ACT OF 1940. Section 203(b) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(b)) is amended— (1) by striking "or" at the end of paragraph (2); (2) by striking the period at the end of paragraph (3) and inserting "; or"; and (3) by adding at the end the following new paragraph: "(4) any investment adviser that is a charitable organization, as defined in section 3(c)(10)(D) of the Investment Company Act of 1940, or is a trustee, director, officer, employee, or volunteer of such a charitable organization acting within the scope of such person's employment or duties with such organization, whose advice, analyses, or reports are provided only to one or more of the following: "(A) any such charitable organization; "(B) a fund that is excluded from the definition of an investment company under section 3(c)(10)(B) of the Investment Company Act of 1940; or "(C) a trust or other donative instrument described in section 3(c)(10)(B) of the Investment Company Act of 1940, or the trustees, administrators, settlors (or potential settlors), or beneficiaries of any such trust or other instrument.". SEC. 6. PROTECTION OF PHILANTHROPY UNDER STATE LAW, 15 USC 80a-3a. (a) REGISTRATION REQUIREMENTS. —^A security issued by or any interest or participation in any pooled income fund, collective trust fund, collective investment fund, or similar fund that is excluded from the definition of an investment company under section 3(c)(10)(B) of the Investment Company Act of 1940, and the offer or sale thereof, shall be exempt from any statute or regulation of a State that requires registration or qualification of securities. (b) TREATMENT OF CHARITABLE ORGANIZATIONS.— No charitable organization, or any trustee, director, officer, employee, or volunteer of a charitable organization acting within the scope of such person's employment or duties, shall be required to register as, or be subject to regulation as, a dealer, broker, agent, or investment adviser under the securities laws of any State because such organization or person buys, holds, sells, or trades in securities for its own account in its capacity as trustee or administrator of, or otherwise on behalf of or for the account of one or more of the following: (1) a charitable organization; (2) a fund that is excluded from the definition of an investment company under section 3(c)(10)(B) of the Investment Company Act of 1940; or (3) a trust or other donative instrument described in section 3(c)(10)(B) of the Investment Company Act of 1940, or the settlors (or potential settlors) or beneficiaries of any such trusts or other instruments.
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