The Week Ahead: Congress is Back in Session
Congress 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
5424 – The bill would
update the Investment Advisers Act of 1940 by removing what are
considered duplicative regulations affecting federally registered investment
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.
Hearing on the Shareholder Proposal Process
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
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.