The House will vote Tuesday on an amendment to S. 488, the JOBS and Investor Confidence Act of 2018, also known as House Financial Services Committee Chairman Jeb Hensarling’s “JOBS Act 3.0.”
The bill is designed to modernize “our nation’s securities laws and help small and midsize businesses get started, raise the capital they need to expand, innovate and hire new employees,” the U.S. Chamber of Commerce said in commenting on the upcoming vote.
Hensarling, R-Texas, said in mid-May that the Dodd-Frank rollback bill — the Economic Growth, Regulatory Relief and Consumer Protection Act (S.2155), which was signed into law by President Donald Trump on May 24 — didn’t go far enough in its capital formation attempts, and that he’d be pushing for a Jumpstart Our Business Startups Act follow-up package to hit the House floor in the summer.
The bill passed in May “is essentially a community financial institutions regulatory relief bill — that’s its major thrust,” Hensarling said, “but it has a really small capital formation title.”
So as good as S.2155 is, “it leaves 80% of bank assets untouched,” he continued.
What he’s hoping for “in this trailing bill is something that is going to be in the vein of the JOBS Act; JOBS 1.0 was signed into law by President Barack Obama, who at the time said, ‘This is a an important step on the journey to remove barriers to entrepreneurs getting capital.’”
Hensarling and Rep. Maxine Waters, D-Calif., ranking member on the financial services committee, announced Monday that they had reached an agreement on the JOBS Act 3.0, which is a package of 32 bills that have “passed the committee or House this Congress with broad bipartisan support.”
“Over the last several months, our committee has been working hard to put forth a number of capital-formation bills that are designed to breathe new life into markets that are suffocating under aging regulations,” said Hensarling, in a statement. “Thanks to the efforts of the ranking member and members of the committee on both sides of the aisle, we have a strong bipartisan package that will play an important role in sustaining long-term economic growth and global competitiveness.”
Waters added in the statement her thanks to Hensarling and the staff of the committee “on both sides of the aisle for the work that they have been doing, working together to live up to what we always say — that we all support small businesses, their access to capital and protecting investors. This is true bipartisanship we are witnessing today.”
Other bills in the JOBS 3.0 package include:
H.R. 1585, Fair Investment Opportunities for Professional Experts Act — H.R. 1585 modernizes the definition of accredited investor so those who do not have a high income or high net worth but do have the education and job experience to evaluate investment risks and merits can participate in the growth of promising companies.
H.R. 477, Small Business Mergers, Acquisitions, Sales & Brokerage Simplification Act of 2017 — The bill alleviates costs to small-business owners by simplifying the securities registration system for mergers and acquisition brokers who help transfer the ownership of small, privately held companies. It also disqualifies “bad actors” from utilizing the simplified process and does not allow transactions involving shell companies.
H.R. 3972, Family Office Technical Correction Act — The bill clarifies that family offices and family clients, as defined in section 275.202(a)(11)(G)-1 of title 17, Code of Federal Regulations, are accredited investors under Regulation D of the Securities and Exchange Commission.
H.R. 6321, Investment Adviser Regulatory Flexibility Improvement Act — The bill directs the SEC to consider alternative methods for businesses or organizations to qualify as a “small business” or “small organization” for the purposes of assessing the regulatory impact on investment advisors.
— Check out Critics Blast Dodd-Frank Rollback Bill on ThinkAdvisor.