The House Financial Services Committee approved and advanced 12 pieces of legislation that its leadership says will help protect financial institutions and ease regulatory burdens on smaller entities.
The list of bills reported favorably to the House for further consideration, include:
H.R. 6021, the “Small Business Audit Correction Act of 2018”
?The bill, amended, modifies the Sarbanes-Oxley Act of 2002 so that small, privately owned non-custodial brokers and dealers in good standing are no longer required to hire a Public Company Accounting Oversight Board (PCAOB)-registered audit firm in order to meet the annual reporting obligations outlined by Title I of that Act.
This bill was passed by a vote 36-16.
H.R. 6751, the “Banking Transparency for Sanctioned Persons Act of 2018”
?The “Banking Transparency for Sanctioned Persons Act of 2018,” as amended, requires the Secretary of the Treasury to issue a semi-annual report to both the House Financial Services Committee and Senate Banking Committee regarding financial services provided to state sponsors of terrorism or certain sanctioned individuals. This bill aims to increase transparency regarding the illicit activity of financial institutions and certain sanctioned persons on a global scale so that plans can be made to combat future cruelties.
This bill was passed by a vote 48-0.
H.R. 6737, the “Protect Affordable Mortgages for Veterans Act of 2018”
The bill amends the National Housing Act to provide a technical fix so that recently executed mortgage loans refinanced by the U.S. Department of Veterans Affairs Home Loans remain eligible for pooling in the Ginnie Mae securities.
It was passed by a vote 49-0.
H.R. 6729, the “Empowering Financial Institutions to Fight Human Trafficking Act of 2018”
The proposed legislation instructs the Secretary of the Treasury to establish a mechanism for non-profit organizations to qualify for safe harbor when sharing specific information with financial institutions that facilitates their duties of customer due diligence and the reporting of suspicious activities relating to human trafficking.
It was passed by a vote 44-5.
H.R. 4753, the “Federal Reserve Supervision Testimony Clarification Act”
The “Federal Reserve Supervision Testimony Clarification Act,” as amended, modifies the Federal Reserve Act to require the vice chairman of the Board of Governors to fulfill the statutory requirement for semi-annual testimony of the Federal Reserve if the vice chairman for supervision position is vacant.
This bill was passed by a vote 49-0.
H.R. 6745, the “Access to Capital Creates Economic Strength and Supports Rural America Act”
The bill, as amended, modifies the Securities Exchange Act of 1934 to modify the shareholder threshold for registration defined under that Act so that issuers who receive Universal Service Funding are better protected in their decision to stay private or go public. Additionally, the SEC would be required to submit a report to Congress regarding the impact of the bill three years after its enactment.
It was passed by a vote 37-15.
H.R. 5534, the “Give Useful Information to Define Effective Compliance Act”
The “Give Useful Information to Define Effective Compliance Act,” or “GUIDE Compliance Act,” as amended, modifies Title X of the Dodd-Frank Act so that the Bureau of Consumer Financial Protection (BCFP) has clearly defined procedures on how to issue guidance, including guidance necessary to comply with the law, and provides a safe harbor for good faith reliance on guidance issued by the Bureau.
This bill was passed by a vote 38-14.
H.R. 6158, the “Brokered Deposit Affiliate-Subsidiary Moderation Act of 2018”
The proposed legislation revises the definition of “deposit broker” under the Federal Deposit Insurance Act (FDIA) to exempt funds collected through an insured depository institution’s affiliate or subsidiaries of an insured depository institution.
This bill was passed by a vote 34-17.
H.R. 6743, the “Consumer Information Notification Requirement Act”
The bill, as amended, modifies the Gramm-Leach-Bailey Act to direct the federal financial regulatory agencies to establish a federal standard for financial institutions regarding data security measures, as well as a notification system that responds to any breach or unauthorized access of customer information.
It was passed by a vote 32-20.
H.R. 2128, the “Due Process Restoration Act”
The proposed legislation allows respondents in SEC enforcement cases to remove their proceedings out of the SEC’s administrative in-house tribunal to a federal district court.
This bill was passed by a vote 31-20.
H.R. 4758, the “FOMC Policy Responsibility Act”
The bill seeks to modify the Federal Reserve Act to clarify that the Federal Open Market Committee (FOMC) is responsible for establishing interest rates on reserve balances.
This bill was passed by a voice vote.
H.R. 6741, the “Federal Reserve Reform Act of 2018”
The proposed legislation, as amended, requires the FOMC to annually adopt a monetary policy strategy, as well as up to three reference rules that can increase policy transparency. This legislation also protects the Federal Reserve from political pressures to engage in credit policies through either unconventional asset purchases or emergency lending.
This bill was passed by a vote 30-21.