July 11, 2018

Committee Advances Eight Bills

Financial Services Committee--Sarah (Rozier) Flaim; Keeley Christensen

WASHINGTON – This week, the Financial Services Committee approved eight bipartisan bills to support regulatory flexibility, market expansion, and corporate transparency.

“The bipartisan bills passed by the Committee today will help our small businesses gain capital, help entrepreneurial ventures, and help companies in America go public and stay public. I want to thank Members on both sides of the aisle for their efforts on these and other measures as we continue working towards putting together a strong, bipartisan capital formation package to help our small businesses and entrepreneurs while also protecting consumers and ensuring we are able to compete with global competitors like China,” said Committee Chairman Jeb Hensarling (R-TX) in his opening statement at today’s markup.

Below is a list of the bills the committee reported favorably by voice vote to the House for further consideration:

H.R. 3555, the “Exchange Regulatory Improvement Act”

Introduced by Representatives Barry Loudermilk (R-GA) and David Scott (D-GA), the “Exchange Regulatory Improvement Act,” as amended, requires the Securities and Exchange Commission to set forth the facts and circumstances it considers in determining what is a “facility” of an exchange..

H.R. 6177, the “Developing and Empowering our Aspiring Leaders Act”

Introduced by Representative Trey Hollingsworth (R-IN), the “Developing and Empowering our Aspiring Leaders Act,” as amended, requires the Securities and Exchange Commission to revise the definition of a qualifying investment to include equity securities acquired in a secondary transaction.

H.R. 6319, the “Expanding Investment in Small Businesses Act”

Introduced by Representative Randy Hultgren (R-IL), the “Expanding Investment in Small Businesses Act” requires the SEC to study whether the current diversified fund limit threshold for mutual funds of 10% constrains their ability to take meaningful positions in small-cap companies.

H.R. 6322 , the “Enhancing Multi-Class Share Disclosures Act”

Introduced by Representative Gregory Meeks (D-NY), the “Enhancing Multi-Class Share Disclosures Act,” as amended, requires issuers with a multi-class stock structure to make certain disclosures in any proxy or consent solicitation material.

H.R. 6324 , the “Middle Market IPO Underwriting Cost Act”

Introduced by Representative Jim Himes (D-CT), the “Middle Market IPO Underwriting Cost Act” requires the Securities and Exchange Commission, in consultation with the Financial Industry Regulatory Authority, to study the direct and indirect costs associated with small and medium-sized companies to undertake initial public offerings.  

H.R. 6320 , the “Promoting Transparent Standards for Corporate Insiders Act”

Introduced by Representative Maxine Waters (D-CA), the “Promoting Transparent Standards for Corporate Insiders Act” requires the Securities and Exchange Commission to consider certain types of amendments to Rule 10b5-1 and directs the SEC to consider how any amendments to Rule 10b5-1 would clarify and enhance existing prohibitions against insider trading while also considering the impact of any such amendments on attracting candidates for insider positions, capital formation, and a company’s willingness to operate as a public company.

H.R. 6321 , the “Investment Adviser Regulatory Flexibility Improvement Act”

Introduced by Representatives Gwen Moore (D-WI) and Bill Huizenga (R-MI), the “Investment Adviser Regulatory Flexibility Improvement Act” directs the Securities and Exchange Commission to consider whether such alternative methods for businesses or organizations to qualify as a “small business” or “small organization” should include a threshold based on the number of non-clerical employees of the business or organization.

H.R. 6323 , the “National Senior Investor Initiative Act of 2018”

Introduced by Representatives Josh Gottheimer (D-NJ) and Trey Hollingsworth (R-IN), the “National Senior Investor Initiative Act of 2018”  or the “Senior Security Act of 2018,” as amended, creates an interdivisional task force at the Securities and Exchange Commission, to examine and identify challenges facing senior investors and requires the Government Accountability Office to study the economic costs of the exploitation of senior citizens.


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