Today, the U.S. House of Representatives passed H.R. 1815, the SEC Disclosure Effectiveness Testing Act, a bill to require the Securities and Exchange Commission (SEC) to test any new disclosure intended for retail investors under the SEC’s proposed regulation best interest. It would also require the SEC to review and test its existing disclosures for retail investors, such as trading confirmation statements.

This legislation was introduced by Congressman Sean Casten (D-IL). It passed by a vote of 229-186.

In March, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, convened a full Committee markup in March to consider H.R. 1815 and four other bills. H.R. 1815 was passed out of Committee by a vote of 33-26.

See below for a brief explanation of this important legislation.

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