Legislative Activity

Lawmakers to Focus on Oversight of and Regulatory Burdens on the Financial Services Industry

With the Senate Banking Committee set to hold a markup on May 14 to consider proposals that would provide regulatory relief to community and regional banks, both the House Financial Services and Senate Banking Committees this week will hold hearings on oversight of and regulatory burdens on the financial services industry. In the House Financial Services Committee, lawmakers will focus on the impact of regulatory burdens on the insurance industry, as well as oversight of the Financial Industry Regulatory Authority (FINRA). The Committee will also consider various legislative proposals to enhance capital formation and reduce regulatory burdens, including the following:

  • H.R. 432, the “Small Business Investment Company Advisers Relief Act of 2015”
  • H.R. 686, the “Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2015”
  • H.R. 1317, a bill to amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes
  • H.R. 1334, the “Holding Company Registration Threshold Equalization Act of 2015”
  • H.R. 1525, the “Disclosure Modernization and Simplification Act of 2015”
  • H.R. 1675, the “Encouraging Employee Ownership Act of 2015”
  • H.R. 1723, the “Small Business Freedom and Growth Act of 2015”
  • H.R. 1839, the “Reforming Access for Investments in Startup Enterprises Act of 2015”
  • H.R. 1847, the “Swap Data Repository and Clearinghouse Indemnification Correction Act”
  • H.R. 1965, the “Small Company Disclosure Simplification Act”
  • H.R. 1975, a bill to amend the Securities Exchange Act of 1934 to require the Securities Exchange Commission to refund or credit excess payments made to the Commission
  • H.R. ____, the “Improving Access to Capital for Emerging Growth Companies Act”

On the Banking Committee, Senators plan to examine the impact of regulatory burdens on the insurance industry, including insurance capital rules and the Financial Stability Oversight Council’s (FSOC) designation process.

This Week’s Hearings:

  • Tuesday, April 28: The Senate Banking Committee will hold a hearing titled “The State of the Insurance Industry and Insurance Regulation.”
  • Wednesday, April 29: The House Financial Services Subcommittee on Housing and Insurance will hold a hearing titled “The Impact of International Regulatory Standards on the Competitiveness of U.S. Insurers.”
  • Wednesday, April 29: The House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises will hold a hearing titled “Legislative Proposals to Enhance Capital Formation and Reduce Regulatory Burdens.”
  • Wednesday, April 29: The Senate Banking Subcommittee on Housing, Transportation, and Community Development will hold a hearing titled “Exploring Opportunities for Private Investment in Public Infrastructure.”
  • Thursday, April 30: The House Financial Services Subcommittee on Monetary Policy and Trade will hold a joint hearing with the House Oversight and Government Reform Subcommittee on Health Care, Benefits, and Administrative Rules titled “Examining the Export-Import Bank’s Mandates.”
  • Thursday, April 30: The Senate Banking Subcommittee on Securities, Insurance, and Investment will hold a hearing titled “Examining Insurance Capital Rules and FSOC Process.”
  • Friday, May 1: The House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises will hold a hearing titled “Oversight of the Financial Industry Regulatory Authority.”

Regulatory Activity

SEC to Hold Open Meeting

On Wednesday, April 29, the Securities and Exchange Commission (SEC) will consider whether to propose amendments and re-propose a rule under the Securities Exchange Act of 1934 (Exchange Act) governing the application of certain Title VII requirements to security-based swap transactions connected with a non-U.S. person’s dealing activity that are arranged, negotiated, or executed by personnel located in a U.S. branch or office or in a U.S. branch or office of an agent. The SEC will also consider whether to propose amendments under Section 14(i) of the Exchange Act, as added by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, requiring registrants to disclose in a clear manner the relationship between executive compensation actually paid and the financial performance of the registrant.

FACI to Meet on Cybersecurity, Natural Catastrophes

The Department of Treasury’s Federal Advisory Committee on Insurance (FACI) has announced that it will hold its next open meeting on Monday, May 7. During the meeting, FACI is expected to discuss “cybersecurity related to the insurance industry, including regulatory developments, and natural catastrophes and the role of mitigation, including President Obama’s Executive Order 13690, Establishing a Federal Flood Risk Management Standard.”