House approves three Maloney-backed Financial Services Committee bills
WASHINGTON – The House of Representatives today approved three Financial Services Committee bills for which Congresswoman Carolyn B. Maloney was the lead Democratic co-sponsor.
“These are common-sense bills that will help modernize several important financial regulatory practices to help consumers and small businesses,” said Maloney.
The Regulation D Study Act (H.R. 3240) authored by Rep. Robert Pittenger (R-NC) would study monthly limits on the number of automatic withdrawals from a consumer’s savings account. Currently, Regulation D limits the number of automatic withdrawals from a consumer’s savings account to six per month. This regulation has a harmful impact on consumers who have linked their checking and saving accounts in a way that allows an automatic transfers from savings to prevent an overdraft and overdraft fee.
“As two recent studies by the CFPB have noted, overdraft fees disproportionately harm the least sophisticated consumers, who can least afford it,” said Maloney. “So if there’s a regulation that is causing unnecessary overdraft fees, we should study whether that regulation is still necessary. And that’s what our bill does — it asks the GAO to study the limitation in Regulation D, to determine if it’s still useful.”
The Disclosure Modernization and Simplification Act (H.R. 4569) authored by Rep. Scott Garrett (R-NJ) would direct the SEC to build on its 2013 study of how to modernize and simplify the disclosure process for emerging growth companies. The bill would require the SEC to make immediate improvements to Reg S-K reporting requirements in the short-term, and then make specific and detailed recommendations on how to simplify and modernize Reg S-K in the long-term.
“This bill will ensure that the SEC properly tailors its regulations to the needs of small businesses, and doesn’t get caught in a ‘one-size-fits-all’ mentality,” said Maloney. “The process of scaling and streamlining the reporting requirements for smaller companies is something that, in order to keep pace with the ever-evolving marketplace, has to be revisited every 7 to 10 years. It requires vigilance by the SEC, and also by Congress. And I believe that now is an excellent time for the SEC to revisit the disclosure requirements for smaller companies, and to figure out how to best modernize these requirements.”
The SBIC Advisers Relief Act (H.R. 4200) authored by Rep. Blaine Luetkemeyer (R-MO) would fix an unintended consequence of Dodd-Frank by clarifying that investment advisers who advise both venture funds and SBICs are exempt from SEC registration. Under Dodd-Frank, an investment adviser that only advises a venture capital fund is exempt from SEC registration. Similarly, an investment adviser that only advises Small Business Investment Companies, or “SBICs,” is also exempt. But an investment adviser that advises both a venture capital fund and an SBIC is not exempt.
“We should not discourage investment advisers from advising both venture capital funds and SBICs,” said Maloney. “Investment advisers with experience advising venture capital funds can help Small Business Investment Companies invest in the next Apple, Intel or Staples. Not allowing this expertise to be transferred ultimately restricts small businesses’ access to much-needed investment capital.”
Maloney serves on the House Committee on Financial Services and is a member of three subcommittees. She is the Ranking Member of the Subcommittee on Capital Markets and Government Sponsored Enterprises, and also serves on the Subcommittee on Financial Institutions and Consumer Credit, and the Subcommittee on Oversight and Investigations.