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Securities bills addressing corporate governance, capital formation, and Dodd-Frank Act disclosure requirements were approved Nov. 15 by the House Financial Services Committee.
The measures would require proxy advisory firms to register with the Securities and Exchange Commission, permit issuers to sell more unregistered securities, and repeal an SEC rule requiring companies to disclose their use of so-called conflict minerals.
The Corporate Governance Reform and Transparency Act ( H.R. 4015) from Rep. Sean Duffy (R-Wis.) would require firms that give investors proxy voting advice to register with the SEC. These firms also would have to disclose their methods and potential conflicts of interest. The measure was approved 40-20.
The Regulation A+ Improvement Act ( H.R. 4263) from Rep. Tom MacArthur (R-N.J.) would allow issuers to sell unregistered securities worth up to $75 million, a $25 million boost from the current $50 million threshold. The SEC adopted 1933 Securities Act Regulation A Plus under the 2012 Jumpstart Our Business Startups Act in an effort to help small companies raise capital. The measure was approved 37-23.
The conflict minerals legislation ( H.R. 4248) from Rep. Bill Huizenga (R-Mich.) would eliminate a rule that requires companies to report on their use of gold, tin, tantalum, and tungsten from the Democratic Republic of Congo and nearby countries. The SEC is reviewing the disclosure requirement, which has received pushback from industry groups for forcing corporations to disclose whether their computer chips, jewelry, and other goods are connected to conflict and human rights abuses. The bill was approved 32-27.
The Financial Choice Act ( H.R. 10), which passed the House earlier this year, also would require proxy advisory firm registration, increase the Reg A Plus threshold, and repeal the conflict minerals rule. The legislation was referred to the Senate Banking Committee, where it remains.
To contact the reporter on this story: Andrew Ramonas in Washington at aramonas@bna.com
To contact the editor responsible for this story: Phyllis Diamond at pdiamond@bna.com
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