The Week Ahead: Congress is Back in Session

Capitol BuildingCongress is back this week after a seven-week recess.  Here’s what to expect over the coming days on the Hill and from various federal agencies. 

House to Debate Capital Formation Bills

  • H.R. 5424 – The bill would update the Investment Advisers Act of 1940 by removing what are considered duplicative regulations affecting federally registered investment advisers.
  • H.R. 2357 – The bill would simplify the SEC's registration regime for smaller companies, lowering compliance costs associated with redundant paperwork so companies can direct more resources toward expansion.  H.R. 2357 will also consist of two other bills H.R. 4850 and H.R. 4852.  H.R. 4850 would amend the Securities Act of 1933 to allow for small businesses to use “micro offerings” to raise capital without overly burdensome registration requirements.  H.R. 4852 would increase the use of private placement offerings for companies to raise capital meant to stimulate economic growth. The bill directs the SEC to revise Regulation D to ensure that small businesses do not face complicated and unnecessary regulatory burdens when attempting to raise capital through Regulation D offerings.

 House Hearing on the Shareholder Proposal Process

  • The House Financial Services Committee's Capital Markets subcommittee Sept. 9 will hear testimony on the SEC's shareholder proposal process and other corporate governance matters. The hearing, “Corporate Governance: Fostering a System that Promotes Capital Formation and Maximizes Shareholder Value,” will be held at the Rayburn House Office Building.

 Federal Agency Activity

  • Keith Higgins, director of the SEC's Division of Corporation Finance, Sept. 9 will participate in a “Dialogue with the Director” session at the ABA's Business Law Section annual meeting in Boston.
  • The CFTC is scheduled to consider rules to mandate enhanced system safeguard testing for futures-industry infrastructures at an open meeting Sept. 8. The proposed testing is aimed at improving the cyber-defenses of clearinghouses, exchanges and data repositories. Commissioners also will consider whether uncleared swap margin rules in Japan are comparable to those in the U.S.
  • The comment period for a CFTC proposal to expand registration exemptions for foreign swaps dealers closes Sept. 6. Foreign swaps brokers would be exempt from CFTC registration if they act only on behalf of parties located outside the U.S., under the proposal.