April 4 2017

Capital formation bills approved by house and Senate committees

Morrison & Foerster LLP | Banking & Financial Services - USA

Carlos Juarez

On March 9, 2017, a number of bipartisan bills designed to promote capital raising for companies were approved by the House Financial Services Committee and the Senate Committee on Banking, Housing and Urban Affairs. Chairman of the Senate Committee on Banking, Housing and Urban Affairs Mike Crapo noted that the bills "will improve economic growth and investor protections." The approved bills include:

  • H.R. 910/S. 327, "Fair Access to Investment Research Act of 2017" Directs the SEC to provide a safe harbor related to certain investment fund research reports
  • H.R. 1219/S. 444, "Supporting America's Innovators Act of 2017" Amends the Investment Company Act of 1940 to expand the investor limitation for qualifying venture capital funds under an exemption from the definition of an investment company.
  • H.R. 1257/S. 462, "Securities and Exchange Commission Overpayment Credit Act" Amends the Securities Exchange Act of 1934 to require the SEC to refund or credit excess payments made to the Commission.
  • H.R. 1366/S. 484, "U.S. Territories Investor Protection Act of 2017" Amends the Investment Company Act of 1940 to terminate an exemption for companies located in Puerto Rico, the Virgin Islands, and any other possession of the United States.
  • H.R. 1343/S. 488, "Encouraging Employee Ownership Act" Directs the SEC to revise its rules so as to increase the threshold amount for requiring issuers to provide certain disclosures relating to compensatory benefit plans.
  • H.R. 1312, the "Small Business Capital Formation Enhancement Act" Amends the Small Business Investment Incentive Act of 1980 to require an annual review by the SEC of the annual government-business forum on capital formation that is held pursuant to such Act.

For further information on this topic please contact Carlos Juarez at Morrison & Foerster LLP by telephone (+1 212 468 8000) or email ([email protected]). The Morrison & Foerster LLP website can be accessed at www.mofo.com.

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