[Congressional Record Volume 163, Number 201 (Monday, December 11, 2017)]
[House]
[Page H9773]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INVESTOR CLARITY AND BANK PARITY ACT
Mr. LUETKEMEYER. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 3093) to amend the Volcker Rule to permit certain
investment advisers to share a similar name with a private equity fund,
subject to certain restrictions, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3093
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Investor Clarity and Bank
Parity Act''.
SEC. 2. NAMING RESTRICTIONS.
Section 13 of the Bank Holding Company Act of 1956 (12
U.S.C. 1851) is amended--
(1) in subsection (d)(1)(G)(vi), by inserting before the
semicolon the following: ``, except that the hedge fund or
private equity fund may share the same name or a variation of
the same name as a banking entity that is an investment
adviser to the hedge fund or private equity find, if--
``(I) such investment adviser is not an insured depository
institution, a company that controls an insured depository
institution, or a company that is treated as a bank holding
company for purposes of section 8 of the International
Banking Act of 1978;
``(II) such investment adviser does not share the same name
or a variation of the same name as an insured depository
institution, any company that controls an insured depository
institution, or any company that is treated as a bank holding
company for purposes of section 8 of the International
Banking Act of 1978; and
``(III) such name does not contain the word `bank' ''; and
(2) in subsection (h)(5)(C), by inserting before the period
the following: ``, except as permitted under subsection
(d)(1)(G)(vi)''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Luetkemeyer) and the gentleman from Massachusetts (Mr.
Capuano) each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. LUETKEMEYER. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and to include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. LUETKEMEYER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 3093, the Investor Clarity and
Bank Parity Act. I would like to start by thanking my colleague from
Massachusetts (Mr. Capuano) for his work on this important bipartisan
legislation.
This bill makes a modest amendment to section 619 of the Dodd-Frank
Act, also known as the Volcker rule, by correcting an unintended
consequence that occurred during implementation.
When the regulators issued the final rule to the Volcker rule, they
imposed severe limitations on the ability of bank holding companies and
their affiliates, including investment advisers, to sponsor hedge funds
and private equity funds, also known as covered funds. As a result, a
covered fund cannot use the name of a sponsor.
For example, if XYZ investment adviser is an affiliate of XYZ bank
and sponsors a real estate fund, that real estate fund could not be
named XYZ real estate fund. Not only is such a restriction at odds with
industry practice, it reduces transparency and confuses investors about
who is actually managing a covered fund.
H.R. 3093 eliminates this prohibition and simply allows an affiliate
of a bank holding company, such as an investment adviser, to share a
similar name with a private equity fund. In doing so, this legislation
clarifies the original intent of the Volcker rule and, most
importantly, helps investors have better insight into who is actually
managing a covered fund.
Finally, H.R. 3093 is consistent with recommendations provided by the
Treasury Department in its recent report on banks and credit unions.
I want to again thank my friend from Massachusetts for his work on
this bill. The Volcker rule is in need of additional reforms. I
appreciate that Mr. Capuano has started on the naming issue and that
our colleagues on the Senate Banking Committee have included modest
Volcker reforms in Chairman Crapo's regulatory relief legislation.
It is my hope, however, that this is the beginning of the
conversation and that we can work again in a bipartisan, bicameral
fashion to pass additional Volcker reforms, such as the designation of
a single regulator to work with other regulators. In the meantime, I
urge my colleagues to support this commonsense legislation today.
Mr. Speaker, I reserve the balance of my time.
Mr. CAPUANO. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I believe the gentleman from Missouri has stated
everything that needs to be said. This is a simple bill that is a
technical amendment to the Volcker rule that I strongly support. I know
that many others have opposition to that. This is a minor change.
When you do a bill like Dodd-Frank, or any major bill, there are
always things you make a mistake on and that you didn't see coming.
This is one of them.
It is very simple. This simply allows a company to use names that
they have been using forever. That is really all it is. I appreciate
the gentleman's willingness and the committee's willingness to hear
this simple bill.
Mr. Speaker, I urge passage of this bill, and I yield back the
balance of my time.
Mr. LUETKEMEYER. Mr. Speaker, I have no further requests for time,
and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Luetkemeyer) that the House suspend the
rules and pass the bill, H.R. 3093.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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