On Wednesday, the U.S. House of Representatives approved H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act, by a vote of 271-154. The measure was sponsored by Rep. Mike Fitzpatrick, R-Pa., and includes several bipartisan bills considered and passed in the 113th Congress aiming to reform sections of Dodd-Frank and support capital formation. ACG signed on to a letter last September in support of the package. Of note, the new measure includes two pieces of legislation important for ACG members:
- The Small Business Mergers, Acquisitions, Sales and Brokerage Simplification Act: Formerly H.R. 2274, the bill was introduced in the 113th Congress by Reps. Bill Huizenga, R-Mich., and Brian Higgins, D-N.Y. It would exempt M&A brokers from having to register as broker-dealers under the Securities Exchange Act of 1934 and instead create an electronic reporting system. The bill marks an important step toward reducing regulatory burdens and eliminating ambiguity for broker-dealers in the middle market. The measure garnered strong bipartisan support in the 113th Congress and was unanimously approved by the U.S. House of Representatives (422-0). The bill was introduced in the Senate (formerly S. 1923) by Joe Manchin, D-W.Va., and David Vitter, R-La.
- The SBIC Advisers Relief Act: Formerly H.R. 4200, this bill was introduced in the 113th Congress by Rep. Blaine Luetkemeyer, R-Mo., and would remedy unintended consequences and double regulation placed on advisers of SBICs, venture capital firms and other smaller private equity investors. The bill was approved unanimously by the House Financial Services Committee in the 113th Congress; a companion bill was introduced in the Senate by Mark Kirk, R-Ill., and Joe Manchin, D-W.Va.
Wednesday’s House action marks an important initial step in the new Congress toward the removal of unnecessary regulatory burdens for ACG members and other investment advisers. ACG encourages the Senate to take up a similar package and for President Obama to sign the bill into law. Such action will help ACG members to focus on creating jobs and growing their investments. Furthermore, ACG will actively advocate for other reforms to Dodd-Frank in the 114th Congress, including exempting private equity firms from registration under the Investment Advisers Act.
For more information, please contact Amber Landis, senior director of public policy, at email@example.com.