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House Passes Waters’ Amendments to Support Small Businesses and Protect Investors
WASHINGTON, D.C. - This week, the House of Representatives passed H.R. 3351, the fiscal year 2020 Financial Services and General Government Appropriations bill, which provides $24.6 billion to assist taxpayers, support small businesses and funds a broad range of government agencies including the Department of Treasury and the Consumer Financial Protection Bureau.
Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, offered four amendments which would support small businesses and prevent the Trump Administration from rolling back fundamental protections that would threaten the financial security of investors.
The amendments were passed en bloc by a vote of 227-200.
See the amendments below:
Waters Amendment #43: Proxy Advisory Firms
Prohibits the Securities and Exchange Commission from amending or otherwise revising the reliance of certain advisors on the proxy solicitation exemption under 240.14a-2(b) of Title 17, Code of Federal Regulations.
This amendment ensures that any changes made to the rules governing proxy advisory firms will be made by the informed decision of Congress in the best interest of investors and not by special interests looking to paint management in the best light.
This amendment is timely given reports that the SEC is currently working to amend these rules.
Waters Amendment #44: Shareholder Proposal Thresholds
Prohibits the Securities and Exchange Commission from amending or otherwise revising the threshold for shareholder proposals or resubmissions under 240.14a-8 of title 17, Code of Federal Regulations, and ensures that retail investors’ interests are protected and that their voices are heard.
This amendment is timely given reports that the SEC is currently working to amend these rules.
Waters Amendment #45: Regulation Best Interest
Prohibits the Securities and Exchange Commission from implementing, administering, enforcing, or publicizing the final rules and interpretations of the Securities and Exchange Commission rule entitled “Regulation Best Interest: The Broker-Dealer Standard of Conduct” (File No. S7-07-18), along with the other related issued guidance and interpretations.
Following the announcement of this rule, Waters expressed concerns about the SEC’s failure to require all financial professionals to abide by a strong, uniform fiduciary standard of care when providing investors with investment advice. See her statement here.
Waters Amendment #46: Small Business Administration Entrepreneurial Development Programs
Increases the Small Business Administration Entrepreneurial Development Programs account by $5,000,000 in order to further support the training and counseling needs of small businesses through the national network of development centers and women’s business centers.
This amendment also decreases the General Services Administration Real Property Activity/Federal Buildings Fund/Limitations on Availability of Revenue account for rental of space by $5,000,000.
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