U.S. Rep. Pete Sessions (R-Texas) said in a recent news release he believes his sponsored bill, House Resolution 2622, will meet the needs of the investor community, proposing an extension of a temporary no-action letter while conducting a comprehensive study.
According to Congress.gov, the measure passed the House on July 11, and would extend the temporary no-action letter granted by the Securities and Exchange Commission (SEC), while at the same time reviewing its impact.
“Today the House passed my bill, H.R. 2622, to ensure that American investors will not be harmed by overburdensome regulations,” Sessions said in a post on Twitter. “The SEC failed to extend the no-action letter to aid small business investors. I am proud my legislation will help resolve this issue.”
Moreover, according to Congress.gov, the legislation addresses concerns expressed by advocacy groups and investors regarding the potential end of the no-action relief, and it would provide the SEC with the time necessary to examine the impact of the relief make a proper decision on its fate.
The website also detailed the review would include key aspects, including a review of the research market for smaller issues, hurdles faced by women-owned and minority-owned small businesses and the impact of commission rules on research coverage. The primary focus of the study, according to the website, is to ensure accessibility and transparency of research coverage when it comes to costs, which are usually coming from the broker-dealers.
The study also will be tasked with reviewing possible fallout from the expiration of the no-action relief on players in the market. The congressional website noted that the bill will take a broad approach to address issues and make choices that will create an equitable regulatory foundation.
The Securities Industry and Financial Markets Association (SIFMA) issued a statement on HR 2622, noting that both Democrats and Republicans agree on the need for the legislation, and SIFMA President and CEO Kenneth E. Bentsen Jr. lauded the bipartisan approach.
“SIFMA strongly believes there is no reason to harm U.S. market participants, investors, and companies with a European requirement that both the European Commission and UK are planning to significantly roll back,” Bentsen said in the statement. “The bipartisan support for directing the SEC to extend the no-action relief is the correct path forward. We look forward to the Senate taking action in short order and commend Representatives Pete Sessions, R-Texas, and Josh Gottheimer, D-NJ, for their leadership on this issue.”
Amid bipartisan support in the House, the bill now awaits action in the Senate as it winds its way through the legislative process on Capitol Hill.