Senate Banking Committee Member Introduces "Pro-Growth" Legislation
Commentary by Steven Lofchie and Steven Lofchie
Senate Committee on Banking, Housing and Urban Affairs member Mike Rounds (R-SD) introduced six bills intended to reduce regulatory burdens for investors and small businesses attempting to raise capital.
- The Alleviating Stress Test Burdens to Help Investors Act would remove bank-centric stress testing requirements and instead authorize the SEC and CFTC to conduct stress tests;
- The Modernizing Disclosures for Investors Act would require the SEC to conduct a study intended to simplify the quarterly financial reporting system for small companies;
- The Improving Investment Research for Small and Emerging Issuers Act would instruct the SEC to examine the causes of the current lack of investment research on small companies;
- The Developing and Empowering our Aspiring Leaders Act (DEAL Act) would direct the SEC to expand the assets that venture capitalists can invest in without the burdensome registration process;
- The Investment Adviser Regulatory Flexibility Improvement Act would require the SEC to consider "alternative methods" that will enable a business or organization to qualify as a "small business or small organization" under IAA Rule 0-7 (Small entities under the Investment Advisers Act for purposes of the Regulatory Flexibility Act); and
- The Financial Stability Oversight Council (FSOC) Improvement Act would require the Financial Stability Oversight Council "to [enhance] the transparency and procedural fairness of the non-bank systemically important financial institutions (SIFI) designation process."
Commentary
As to the proposed Improving Investment Research for Small and Emerging Issuers Act, the SEC must find a way to allow broker-dealers to make money by publishing research. If the SEC ever thought that broker-dealers will continue to publish research on small companies even though there is no financial benefit in doing so, experience should have taught otherwise.
Commentary
As to the proposed Improving Investment Research for Small and Emerging Issuers Act, the SEC must find a way to allow broker-dealers to make money by publishing research. If the SEC ever thought that broker-dealers will continue to publish research on small companies even though there is no financial benefit in doing so, experience should have taught otherwise.