Today, the House Financial Services Committee, led by Chairwoman Maxine Waters (D-CA), passed six bills to protect investors, ensure fair employment opportunities for justice-involved individuals, and reform credit union governance, as working families across this country struggle to rebuild their savings after the pandemic.
H.R. 5911, the Fair Hiring in Banking Act is a bill introduced by Representative Joyce Beatty (D-OH). This bill would expand employment opportunities at banks and credit unions by reducing barriers to employment based on past minor criminal offenses. The bill specifically reduces the look back at criminal charges from an indeterminate timeline to those that are over 7 years, or if a person has been released from incarceration for 5 years or more and provides a clear definition for the term, “criminal offense involving dishonesty.” The bill also makes it clear that criminal offenses that have been expunged, sealed, or dismissed are not included in the FDIC or NCUA review of eligibility to work for an insured bank or credit union.
Passed the Committee by a voice vote.
H.R. 2620, the Investor Choice Act is a bill introduced by Representative Bill Foster (D-IL). This bill would prohibit broker-dealers, investment advisers, and issuers from including pre-dispute binding mandatory arbitration clauses in their customer agreements.
Passed the Committee by a vote of 27-23.
H.R. 5914, the Empowering States to Protect Seniors from Bad Actors Act is a bill introduced by Representative Josh Gottheimer (D-NJ). This bill would move the responsibility for administering the Senior Investor Protection Grant Program established by Sec. 989A of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) from the Consumer Financial Protection Bureau to the Securities and Exchange Commission (SEC). The bill would establish an interdivisional task force within the SEC to review grant applications and oversee the administration of the program.
Passed the Committee by a voice vote.
H.R. 5910, the Holding SPACs Accountable Act is a bill introduced by Representative Michael San Nicolas (D-Guam). This bill would exclude a special purpose acquisition company (SPAC) from a safe harbor for forward-looking statements, subjecting SPACs to liability for making false or misleading forward-looking statements.
Passed the Committee by a vote of 27-23.
H.R. 5913, the Protecting Investors from Excessive SPACs Fees Act is a bill introduced by Representative Brad Sherman (D-CA). This bill would authorize the SEC to require disclosures by SPACs. SPACs that do not provide the required disclosures and award high levels of promote—a type of a compensation arrangement—to the sponsor of the SPAC, would be prohibited from having their securities marketed and sold to retail investors by financial professionals.
Passed the Committee by a vote of 29-23.
H.R. 2311, the Credit Union Governance Modernization Act is a bill introduced by Representative Tom Emmer (R-MN). This bill would reform the process governing expulsion of Federal credit union members. It would give Federal credit unions the option to either expel a member under the current bylaws, which is based on a vote of credit unions members present at a special meeting, or pursuant to a new policy adopted by the National Credit Union Administration (NCUA) Board.
