[Congressional Record Volume 164, Number 189 (Friday, November 30, 2018)]
[Extensions of Remarks]
[Page E1586]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




ACKNOWLEDGING FINANCIAL SERVICES COMMITTEE ACCOMPLISHMENTS DURING 115TH 
                                CONGRESS

                                 ______
                                 

                          HON. J. FRENCH HILL

                              of arkansas

                    in the house of representatives

                       Friday, November 30, 2018

  Mr. HILL. Mr. Speaker, I am pleased to stand here today acknowledging 
the great work of the Financial Services Committee during the 115th 
Congress.
  I would like to highlight two of my bills that originated in the 
Committee and have now become law.
  First, H.R. 910, the Fair Access to Investment Research Act, allows 
ETF research to be issued like stock research.
  Prior to the passage of this bill, if ETF research was provided from 
a financial services firm to a client, it would be considered an 
``offer'' under Section 5 of the Securities Act of 1933. This 
legislation now gives safe harbor for these reports allowing investors 
access to useful information in this rapidly growing market.
  Since starting an investment firm in the late 1990s, I have seen ETFs 
grow from about 100 funds with $100 billion in assets to over 1,900 
funds with over $3 trillion in assets today. ETFs average 30 percent of 
trading volumes (by value) on any given day.
  Yet, despite their growing popularity and increasing importance to 
retail investors, most broker-dealers did not publish research on ETFs 
due to anomalies in the securities laws and regulations. But with the 
passage of my bill, nearly 6 million U.S. households holding ETFs will 
have access to this important research.
  With this new law, I've personally seen the amazing research produced 
by financial services firms and am thrilled that retail investors both 
in Arkansas and across the country now have access to it.
  I would like to thank my friends, Mr. Foster from Illinois, who 
helped me push this through the House, and Senator Heller of Nevada, 
for leading the charge in the Senate and working with me on this 
bipartisan, common-sense legislation.
  Second, I would like to highlight the Volcker Rule Regulatory 
Harmonization Act, which had a provision become law as part of the S. 
2155 regulatory relief package.
  The provision exempts community banks under $10 billion in assets 
from the Volcker Rule, which was consistent with recommendations made 
by the U.S. Treasury last year.
  The Volcker Rule has been one of the most indecipherable regulations; 
complete with 930 pages of language and overseen by five different 
regulatory authorities. Evidence of the Volcker Rule's ill effects and 
profound unintended consequences were widely reported.
  A bank in my home state, which at the time had less than $8 billion 
in assets, was forced to divest a $2 million investment in a bank fund 
because of regulatory interpretation as it related to the Volcker Rule. 
This resulted in an $80,000 loss for that year.
  Community banks are spending too much time trying to comply with 
unnecessary regulations taking away from their main mission of serving 
their customers. By exempting banks under $10 billion, the law allows 
for a tailored and more appropriate regulatory regime.
  Again, I would like to thank Mr. Foster for his co-sponsorship on 
this legislation as well as the many Senators involved in helping 
create a sensible and tailored regulatory relief package with S. 2155.
  Having worked in the banking and investment industry for the past 
three decades, I appreciate Chairman Hensarling's, Senator Crapo's and 
the Congress' efforts to promote capital formation, reduce unnecessary 
burdens, and grow jobs and the economy.
  I'm proud of the exceptional, productive bipartisan record of 
accomplishment with 142 bills marked up, 126 bills passed the House and 
50 enacted into law--more than any other House Committee.
  None of this would have been possible without the skilled leadership 
of Chairman Hensarling who has been a dedicated and fearless leader of 
the House Financial Services Committee. It has been an honor to serve 
with him over the last four years and I wish him well in his next 
chapter.

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