House Passes Several Legislative Proposals Relating to Financial Services

The House of Representatives passed a number of bills with bipartisan support, including:

H.R. 1847: The Swap Data Repository and Clearinghouse Indemnification Correction Act amends the Commodity Exchange Act to repeal the prerequisite that requiring agencies to agree to indemnify the CFTC for expenses arising from litigation. It also repeals the Securities Exchange Act requirement to indemnify both swap data repositories and the SEC for expenses arising from litigation.

H.R. 432: The SBIC Advisers Relief Act amends the Investment Advisers Act to exempt specified advisers of small business investment companies ("SBICs") from the following: (1) certain SEC registration requirements with respect to the provision of investment advice relating to venture capital funds, and (2) certain SEC registration and reporting requirements with respect to assets under the management of private funds. It also provides the same exemption with respect to any state or local law requiring the registration, licensing or qualifications of investment advisers.

H.R. 1723: The Small Company Simple Registration Act directs the SEC to revise Form S-1 so that a smaller reporting company may incorporate by reference in a registration statement filed with that form any documents that it files with the SEC after the registration statement's effective date.

H.R. 2064: Improving Access to Capital for Emerging Growth Companies Act amends the Securities Act to reduce the number of days from 21 to 15 before a "road show" during which an emerging growth company, before its initial public offering date, may publicly file a draft registration statement for confidential nonpublic review by the SEC. It also amends the Jumpstart Our Business Startups Act to direct the SEC to prescribe conditions under which a registration statement that was filed by an issuer before its initial public offering may omit financial disclosure information for historical periods otherwise required.

H.R. 1334: The Holding Company Registration Threshold Equalization Act amends the Securities Exchange Act to require a savings and loan holding company to register with the SEC if: (i) its assets exceed $10 million and (ii) it has a class of equity security held of record by 2,000 or more persons. It also allows the termination of such registration after the company certifies that its holders of record of that class of security have been reduced to fewer than 1,200 persons. Additionally, it suspends the company's duty to file supplementary and periodic information automatically if the securities of each class to which the registration statement relates (other than any class of asset-backed securities) are held of record by fewer than 1,200 persons.

See: The Swap Data Repository and Clearinghouse Indemnification Correction Act (H.R. 1847); The SBIC Advisers Relief Act (H.R. 432); The Small Company Simple Registration Act (H.R. 1723); The Improving Access to Capital for Emerging Growth Companies Act (H.R. 2064); The Holding Company Registration Threshold Equalization Act (H.R. 1334)