Hill, Carney Introduce Bipartisan Bill to Increase Consumer Access to Investment Information
For more information, contact: Mike Siegel, (202) 225-2506
Washington, DC, May 18, 2015
This week, the House Committee on Financial Services will meet to markup H.R. 2356, the Fair Access to Investment Research Act, a bill introduced last week by Congressman French Hill (AR-02) and Congressman John Carney (DE-At Large). H.R. 2536 would direct the Securities and Exchange Commission (SEC) to provide a safe harbor for research reports that cover Exchange Traded Funds (ETFs) so that the reports would not be considered “offers” under the Securities Act of 1933.
Over the past three decades, ETFs have grown from about 100 funds with $100 billion in assets to over 1300 funds with $1.8 trillion in assets. However, due to anomalies in the securities laws and regulations, most broker-dealers do not publish research on ETFs, despite their growth in popularity. H.R. 2356 would clarify the law to allow broker-dealers to publish research on ETFs and increasing access to investment information for consumers.
After introducing the bill, Congressman Hill and Congressman Carney released the following statements:
“As someone who has spent the past three decades in the banking and investment industry, I have witnessed firsthand the explosive growth in ETFs. This commonsense bill, which mirrors other research safe harbors implemented by the SEC, will provide clarity to the law and allow investors to access useful information in this rapidly growing market. I appreciate the support of Congressman Carney and thank the Committee for its efforts to promote capital formation, remove unnecessary burdens, and grow jobs and the economy.” – Congressman French Hill
“This legislation is a good example of a simple fix that just makes sense. Passing this legislation will mean investors have more and better information in a growing area of investment. The SEC has been considering a policy like this for years – it’s past time to make this change. I’m glad to work across the aisle with Congressman Hill on a proposal that’s straightforward, logical, and necessary.” – Congressman John Carney