The House Financial Services Committee recently approved bipartisan bills to support regulatory flexibility, market expansion and corporate transparency.
The package of bills address a variety of topics, including small business capital-raising, and investor protections.
Also included among the legislation was the BUILD Act. This bill corrects a TRID issue for nonprofit organizations, who had to comply with TRID disclosure rules which were difficult to submit and costly for charitable organizations, according to Rep. Kevin Cramer (R-N.D.).
“Small nonprofit charitable organizations shouldn’t be treated in the same way as mortgage lenders,” Cramer said in a news release. “I am pleased to see the House respond to another overstep caused by Dodd-Frank by allowing these organizations to use more appropriate mortgage lending options that better align to their missions.”
Below is a list of the bills the committee reported favorably by voice vote to full House:
H.R. 3555 requires the Securities and Exchange Commission (SEC) to set forth the facts and circumstances it considers in determining what is a “facility” of an exchange.
H.R. 6177 requires the SEC to revise the definition of a qualifying investment to include equity securities acquired in a secondary transaction.
H.R. 6319 requires the SEC to study whether the current diversified fund limit threshold for mutual funds of 10 percent constrains their ability to take meaningful positions in small-cap companies.
H.R. 6322 requires issuers with a multi-class stock structure to make certain disclosures in any proxy or consent solicitation material.
H.R. 6324 requires the SEC, 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 requires the SEC 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 directs the SEC 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 creates an interdivisional task force at the SEC 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.
Chairman Jeb Hensarling (R-Texas) said the bills would help 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,” Hensarling said in a statement.
Ranking Member Rep. Maxine Waters (D-Calif.) said she supported the bills.
“These Democratic measures that I have outlined are a step in the right direction as you continue your effort to move forward a package of capital markets bills known as the JOBS Act 3.0,” Waters said in a statement. “For the JOBS Act 3.0 to truly facilitate capital formation, promote a stronger economy and create jobs, it is important that we work together to include common-sense bipartisan legislation.”