Sept.HFSC Approves H .R. 2827
AT TODAY’S HOUSE FINANCIAL SERVICES COMMITTEE MARKUP, lawmakers approved H.R. 2827, introduced by Rep. Robert Dold (R-Ill.), by a voice vote after overwhelmingly agreeing to the bill’s substitute amendment by a vote of 60 to 0. The bill seeks to clarify the definition of “municipal advisor” and introduce exemptions to the municipal advisor definition. Dold drafted the legislation in response to the proposed municipal advisor rule promulgated by the Securities and Exchange Commission (SEC) as authorized by Section 975 of the Dodd-Frank Act. Opening remarks reflected a bipartisan agreement that the SEC’s proposal was too broad and members on both sides of the aisle, including Ranking Member Barney Frank (D-Mass.), supported H.R. 2827 as a necessary measure to clarify congressional intent and ensure certain entities are not swept under the SEC’s proposed regulatory framework.
Amendments to H.R. 2827
Dold-Moore Substitute Amendment (Passed by vote of 60 to 0)
Dold and Rep. Gwen Moore (D-Wis.) introduced a substitute amendment that provides for a clear definition of “municipal advisor” and reinstates the federal fiduciary standard for municipal advisors which was eliminated in the original legislation. The amendment also restores language in the Dodd-Frank Act which extends protections for municipalities to “obligated persons” such as nonprofit hospitals.
Frank Amendment (Passed by Voice Vote)
Frank offered an amendment that would strike language requiring that contracts be made in writing. Frank said the change is an anti-evasion procedure that will help authorities “look at the reality of the transaction.”
Dold Amendment (Passed by Voice Vote)
Dold offered an amendment that would eliminate the burden of registration for individuals associated with municipal advisor firms. Dold said the change was requested by the SEC and will result in “resource efficiency” for the Commission because the number of people subject to registration requirements will be reduced.
For a webcast of the markup, please click here.
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AT TODAY’S HOUSE FINANCIAL SERVICES COMMITTEE MARKUP, lawmakers approved H.R. 2827, introduced by Rep. Robert Dold (R-Ill.), by a voice vote after overwhelmingly agreeing to the bill’s substitute amendment by a vote of 60 to 0. The bill seeks to clarify the definition of “municipal advisor” and introduce exemptions to the municipal advisor definition. Dold drafted the legislation in response to the proposed municipal advisor rule promulgated by the Securities and Exchange Commission (SEC) as authorized by Section 975 of the Dodd-Frank Act. Opening remarks reflected a bipartisan agreement that the SEC’s proposal was too broad and members on both sides of the aisle, including Ranking Member Barney Frank (D-Mass.), supported H.R. 2827 as a necessary measure to clarify congressional intent and ensure certain entities are not swept under the SEC’s proposed regulatory framework.
Amendments to H.R. 2827
Dold-Moore Substitute Amendment (Passed by vote of 60 to 0)
Dold and Rep. Gwen Moore (D-Wis.) introduced a substitute amendment that provides for a clear definition of “municipal advisor” and reinstates the federal fiduciary standard for municipal advisors which was eliminated in the original legislation. The amendment also restores language in the Dodd-Frank Act which extends protections for municipalities to “obligated persons” such as nonprofit hospitals.
Frank Amendment (Passed by Voice Vote)
Frank offered an amendment that would strike language requiring that contracts be made in writing. Frank said the change is an anti-evasion procedure that will help authorities “look at the reality of the transaction.”
Dold Amendment (Passed by Voice Vote)
Dold offered an amendment that would eliminate the burden of registration for individuals associated with municipal advisor firms. Dold said the change was requested by the SEC and will result in “resource efficiency” for the Commission because the number of people subject to registration requirements will be reduced.
For a webcast of the markup, please click here.