[House Report 119-204]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-204
======================================================================
SECURITIES RESEARCH MODERNIZATION ACT
_______
July 15, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 3672]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3672) to amend the Securities Act of 1933 to
expand the research report exception to include reports about
any issuer that undertakes a proposed offering of public
securities, having considered the same, reports favorably
thereon with an amendment and recommends that the bill as
amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Consideration.......................................... 2
Related Hearings................................................. 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 5
Performance Goals and Objectives................................. 5
Committee Cost Estimate.......................................... 5
New Budget Authority and CBO Cost Estimate....................... 5
Unfunded Mandates Statement...................................... 5
Earmark Statement................................................ 5
Federal Advisory Committee Act Statement......................... 5
Applicability to the Legislative Branch.......................... 6
Duplication of Federal Programs.................................. 6
Section-by-Section Analysis of the Legislation................... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
Minority Views................................................... 12
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Securities Research Modernization
Act''.
SEC. 2. PROVISION OF RESEARCH REPORT.
Section 2(a)(3) of the Securities Act of 1933 (15 U.S.C. 77b(a)(3))
is amended--
(a) by striking ``an emerging growth company'' and inserting ``an
issuer'';
(b) by striking ``the common equity'' and inserting ``any''; and
(c) by striking ``such emerging growth company'' and inserting ``such
issuer''.
Purpose and Summary
H.R. 3672, the Securities Research Modernization Act, was
introduced on June 2, 2025, by Representative Roger Williams
(TX-25). H.R. 3672 amends the Securities Act of 1933 to expand
the research report exception to include reports about any
issuer that undertakes a proposed offering of public
securities.
Background and Need for Legislation
Title I of the Jumpstart Our Business Startups (JOBS) Act
of 2012 attempted to promote the publication of research
reports regarding Emerging Growth Companies (EGCs) by deeming
the reports a non-offer. The current provision offers limited
protection of research reports in the context of an EGC's
proposed offering of its common equity securities. Research
analysts remain subject to robust regulation, including
Securities and Exchange Commission (SEC) Regulation Analyst
Certification and conflict disclosure requirements, FINRA
conduct and communications rules, and anti-fraud requirements.
H.R. 3672 updates the research report provision to cover all
securities of an EGC or any other issuer. The provision
warrants expansion, especially considering the importance of
research reports to small issuers trying to increase stock
liquidity or gain investors' recognition.
Committee Consideration
119TH CONGRESS
On June 2, 2025, Representative Williams introduced H.R.
3672, the Securities Research Modernization Act, with
Representative Cleo Fields (D-LA) as an original cosponsor. The
bill was referred solely to the Committee on Financial
Services.
The bill was attached to the February 26, 2025, hearing
titled ``The Future of American Capital: Strengthening Public
and Private Markets by Increasing Investor Access and
Facilitating Capital Formation'' and the March 25, 2025,
hearing titled, ``Beyond Silicon Valley: Expanding Access to
Capital Across America.''
On June 10, 2025, the Committee on Financial Services met
in open session to consider, among others, H.R. 3672. The
Committee ordered H.R. 3672, as amended, to be favorably
reported to the House of Representatives.
118TH CONGRESS
On April 13, 2023, Representative Williams introduced H.R.
2576, To amend the Securities Act of 1933 to expand the
research report exception to include reports about any issuer
that undertakes a proposed offering of public securities. This
bill is an earlier iteration of H.R. 3672. It was referred
solely to the Committee on Financial Services. H.R. 2576 was
included as a title in H.R. 2799, the Expanding Access to
Capital Act of 2023. On March 8, 2024, the House passed H.R.
2799 by a recorded vote of 212 yeas and 205 nays. It was
received in the Senate and referred to the Committee on
Banking, Housing, and Urban Affairs.
Related Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearings were used to
develop H.R. 3672:
The Capital Markets Subcommittee of the Committee on
Financial Services held a February 26, 2025, hearing titled
``The Future of American Capital: Strengthening Public and
Private Markets by Increasing Investor Access and Facilitating
Capital Formation'' and the Full Committee held a March 25,
2025, hearing titled, ``Beyond Silicon Valley: Expanding Access
to Capital Across America.'' A discussion draft version of the
bill was attached to both hearings. The following witnesses
testified at the February 26, 2025, hearing: Mr. Andrew
Barnell, CEO and Co-Founder, Geneoscopy; Mr. McKeever Conwell,
Founder and Managing Partner, RareBreed Ventures; Ms. Rebecca
Kacaba, CEO and Co-Founder, DealMaker; Ms. Anna Pinedo,
Partner, Mayer Brown; and Ms. Alexandra Thornton, Senior
Director, Financial Regulation, Center for American Progress.
The following witnesses testified at the March 25, 2025,
hearing: Mr. Steve Case, Chairman and CEO, Revolution LLC; Mr.
Bill Newell, Senior Business Advisor & Former CEO, Sutro
Biopharma; Ms. Candice Matthews Brackeen, General Partner,
Lightship Capital; Mr. Joel Trotter, Partner, Latham & Watkins
LLP; and Ms. Amanda Senn, Director of the Alabama Securities
Commission.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
On June 10, 2025, the Committee ordered H.R. 3672, as
amended, to be reported favorably to the House by a recorded
vote of 31 yeas and 19 nays, a quorum being present. (Record
Vote No. FC-136).
Before the question to report was called, the Committee
adopted an amendment in the nature of a substitute, designated
WILLTX_038, which made minor edits and technical changes,
offered by Representative Williams (TX). The amendment was
adopted by voice vote, a quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 3672 is to expand
the research report exception under the Securities Act of 1933
so that all issuers may publish research reports to increase
stock liquidity and gain investors' recognition.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 3672. The
Committee has requested but not received a cost estimate from
the Director of the Congressional Budget Office. However,
pursuant to clause 3(d)(1) of House rule XIII, the Committee
will adopt as its own the cost estimate by the Director of the
Congressional Budget Office once it has been prepared.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, a cost estimate was not made
available to the Committee in time for the filing of this
report. The Chairman of the Committee shall cause such estimate
to be printed in the Congressional Record upon its receipt by
the Committee.
Unfunded Mandates Statement
The Committee has requested but not received from the
Director of the Congressional Budget Office an estimate of the
Federal mandates pursuant to section 423 of the Unfunded
Mandates Reform Act. The Committee will adopt the estimate once
it has been prepared by the Director.
Earmark Statement
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the resolution and states that the provisions
of the bill do not contain any congressional earmarks, limited
tax benefits, or limited tariff benefits within the meaning of
the rule.
Federal Advisory Committee Act Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title is the ``Securities
Research Modernization Act.''.
Section 2. Provision of research report
Section 2 amends the Securities Act of 1933 (15 U.S.C.
77b(a)(3)) by striking ``an emerging growth company'' and
inserting ``an issuer'', striking ``the common equity'' and
inserting ``any'', and striking ``such emerging growth
company'' and inserting ``such issuer''.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SECURITIES ACT OF 1933
TITLE I--
* * * * * * *
definitions
Sec. 2. (a) Definitions.--When used in this title, unless the
context otherwise requires--
(1) The term ``security'' means any note, stock,
treasury stock, security future, security-based swap,
bond, debenture, evidence of indebtedness, certificate
of interest or participation in any profit-sharing
agreement, collateral-trust certificate,
preorganization certificate or subscription,
transferable share, investment contract, voting-trust
certificate, certificate of deposit for a security,
fractional undivided interest in oil, gas, or other
mineral rights, any put, call, straddle, option, or
privilege on any security, certificate of deposit, or
group or index of securities (including any interest
therein or based on the value thereof), or any put,
call, straddle, option, or privilege entered into on a
national securities exchange relating to foreign
currency, or, in general, any interest or instrument
commonly known as a ``security'', or any certificate of
interest or participation in, temporary or interim
certificate for, receipt for, guarantee of, or warrant
or right to subscribe to or purchase, any of the
foregoing.
(2) The term ``person'' means an individual, a
corporation, a partnership, an association, a joint-
stock company, a trust, any unincorporated
organization, or a government or political subdivision
thereof. As used in this paragraph the term ``trust''
shall include only a trust where the interest or
interests of the beneficiary or beneficiaries are
evidenced by a security.
(3) The term ``sale'' or ``sell'' shall include every
contract of sale or disposition of a security or
interest in a security, for value. The term ``offer to
sell'', ``offer for sale'', or ``offer'' shall include
every attempt or offer to dispose of, or solicitation
of an offer to buy, a security or interest in a
security, for value. The terms defined in this
paragraph and the term ``offer to buy'' as used in
subsection (c) of section 5 shall not include
preliminary negotiations or agreements between an
issuer (or any person directly or indirectly
controlling or controlled by an issuer, or under direct
or indirect common control with an issuer) and any
underwriter or among underwriters who are or are to be
in privity of contract with an issuer (or any person
directly or indirectly controlling or controlled by an
issuer, or under direct or indirect common control with
an issuer). Any security given or delivered with, or as
a bonus on account of, any purchase of securities or
any other thing, shall be conclusively presumed to
constitute a part of the subject of such purchase and
to have been offered and sold for value. The issue or
transfer of a right or privilege, when originally
issued or transferred with a security, giving the
holder of such security the right to convert such
security into another security of the same issuer or of
another person, or giving a right to subscribe to
another security of the same issuer or of another
person, which right cannot be exercised until some
future date, shall not be deemed to be an offer or sale
of such other security; but the issue or transfer of
such other security upon the exercise of such right of
conversion or subscription shall be deemed a sale of
such other security. Any offer or sale of a security
futures product by or on behalf of the issuer of the
securities underlying the security futures product, an
affiliate of the issuer, or an underwriter, shall
constitute a contract for sale of, sale of, offer for
sale, or offer to sell the underlying securities. Any
offer or sale of a security-based swap by or on behalf
of the issuer of the securities upon which such
security-based swap is based or is referenced, an
affiliate of the issuer, or an underwriter, shall
constitute a contract for sale of, sale of, offer for
sale, or offer to sell such securities. The publication
or distribution by a broker or dealer of a research
report about [an emerging growth company] an issuer
that is the subject of a proposed public offering of
[the common equity] any securities of [such emerging
growth company] such issuer pursuant to a registration
statement that the issuer proposes to file, or has
filed, or that is effective shall be deemed for
purposes of paragraph (10) of this subsection and
section 5(c) not to constitute an offer for sale or
offer to sell a security, even if the broker or dealer
is participating or will participate in the registered
offering of the securities of the issuer. As used in
this paragraph, the term ``research report'' means a
written, electronic, or oral communication that
includes information, opinions, or recommendations with
respect to securities of an issuer or an analysis of a
security or an issuer, whether or not it provides
information reasonably sufficient upon which to base an
investment decision.
(4) The term ``issuer'' means every person who issues
or proposes to issue any security; except that with
respect to certificates of deposit, voting-trust
certificates, or collateral-trust certificates, or with
respect to certificates of interest or shares in an
unincorporated investment trust not having a board of
directors (or persons performing similar functions) or
of the fixed, restricted management, or unit type, the
term ``issuer'' means the person or persons performing
the acts and assuming the duties of depositor or
manager pursuant to the provisions of the trust or
other agreement or instrument under which such
securities are issued; except that in the case of an
unincorporated association which provides by its
articles for limited liability of any or all of its
members, or in the case of a trust, committee, or other
legal entity, the trustees or members thereof shall not
be individually liable as issuers of any security
issued by the association, trust, committee, or other
legal entity; except that with respect to equipment-
trust certificates or like securities, the term
``issuer'' means the person by whom the equipment or
property is or is to be used; and except that with
respect to fractional undivided interests in oil, gas,
or other mineral rights, the term ``issuer'' means the
owner of any such right or of any interest in such
right (whether whole or fractional) who creates
fractional interests therein for the purpose of public
offering.
(5) The term ``Commission'' means the Securities and
Exchange Commission.
(6) The term ``Territory'' means Puerto Rico, the
Virgin Islands, and the insular possessions of the
United States.
(7) The term ``interstate commerce'' means trade or
commerce in securities or any transportation or
communication relating thereto among the several States
or between the District of Columbia or any Territory of
the United States and any State or other Territory, or
between any foreign country and any State, Territory,
or the District of Columbia, or within the District of
Columbia.
(8) The term ``registration statement'' means the
statement provided for in section 6, and includes any
amendment thereto and any report, document, or
memorandum filed as part of such statement or
incorporated therein by reference.
(9) The term ``write'' or ``written'' shall include
printed, lithographed, or any means of graphic
communication.
(10) The term ``prospectus'' means any prospectus,
notice, circular, advertisement, letter, or
communication, written or by radio or television, which
offers any security for sale or confirms the sale of
any security; except that (a) a communication sent or
given after the effective date of the registration
statement (other than a prospectus permitted under
subsection (b) of section 10) shall not be deemed a
prospectus if it is proved that prior to or at the same
time with such communication a written prospectus
meeting the requirements of subsection (a) of section
10 at the time of such communication was sent or given
to the person to whom the communication was made, and
(b) a notice, circular, advertisement, letter, or
communication in respect of a security shall not be
deemed to be a prospectus if it states from whom a
written prospectus meeting the requirements of section
10 may be obtained and, in addition, does no more than
identify the security, state the price thereof, state
by whom orders will be executed, and contain such other
information as the Commission, by rules or regulations
deemed necessary or appropriate in the public interest
and for the protection of investors, and subject to
such terms and conditions as may be prescribed therein,
may permit.
(11) The term ``underwriter'' means any person who
has purchased from an issuer with a view to, or offers
or sells for an issuer in connection with, the
distribution of any security, or participates or has a
direct or indirect participation in any such
undertaking, or participates or has a participation in
the direct or indirect underwriting of any such
undertaking; but such term shall not include a person
whose interest is limited to a commission from an
underwriter or dealer not in excess of the usual and
customary distributors' or sellers' commission. As used
in this paragraph the term ``issuer'' shall include, in
addition to an issuer, any person directly or
indirectly controlling or controlled by the issuer, or
any person under direct or indirect common control with
the issuer.
(12) The term ``dealer'' means any person who engages
either for all or part of his time, directly or
indirectly, as agent, broker, or principal, in the
business of offering, buying, selling, or otherwise
dealing or trading in securities issued by another
person.
(13) The term ``insurance company'' means a company
which is organized as an insurance company, whose
primary and predominant business activity is the
writing of insurance or the reinsuring of risks
underwritten by insurance companies, and which is
subject to supervision by the insurance commissioner,
or a similar official or agency, of a State or
territory or the District of Columbia; or any receiver
or similar official or any liquidating agent for such
company, in his capacity as such.
(14) The term ``separate account'' means an account
established and maintained by an insurance company
pursuant to the laws of any State or territory of the
United States, the District of Columbia, or of Canada
or any province thereof, under which income, gains and
losses, whether or not realized, from assets allocated
to such account, are, in accordance with the applicable
contract, credited to or charged against such account
without regard to other income, gains, or losses of the
insurance company.
(15) The term ``accredited investor'' shall mean--
(i) a bank as defined in section 3(a)(2)
whether acting in its individual or fiduciary
capacity; an insurance company as defined in
paragraph (13) of this subsection; an
investment company registered under the
Investment Company Act of 1940 or a business
development company as defined in section
2(a)(48) of that Act; a Small Business
Investment Company licensed by the Small
Business Administration; or an employee benefit
plan, including an individual retirement
account, which is subject to the provisions of
the Employee Retirement Income Security Act of
1974, if the investment decision is made by a
plan fiduciary, as defined in section 3(21) of
such Act, which is either a bank, insurance
company, or registered investment adviser; or
(ii) any person who, on the basis of such
factors as financial sophistication, net worth,
knowledge, and experience in financial matters,
or amount of assets under management qualifies
as an accredited investor under rules and
regulations which the Commission shall
prescribe.
(16) The terms ``security future'', ``narrow-based
security index'', and ``security futures product'' have
the same meanings as provided in section 3(a)(55) of
the Securities Exchange Act of 1934.
(17) The terms ``swap'' and ``security-based swap''
have the same meanings as in section 1a of the
Commodity Exchange Act (7 U.S.C. 1a).
(18) The terms ``purchase'' or ``sale'' of a
security-based swap shall be deemed to mean the
execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or
conveyance of, or extinguishing of rights or
obligations under, a security-based swap, as the
context may require.
(19) The term ``emerging growth company'' means an
issuer that had total annual gross revenues of less
than $1,000,000,000 (as such amount is indexed for
inflation every 5 years by the Commission to reflect
the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics,
setting the threshold to the nearest 1,000,000) during
its most recently completed fiscal year. An issuer that
is an emerging growth company as of the first day of
that fiscal year shall continue to be deemed an
emerging growth company until the earliest of--
(A) the last day of the fiscal year of the
issuer during which it had total annual gross
revenues of $1,000,000,000 (as such amount is
indexed for inflation every 5 years by the
Commission to reflect the change in the
Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics,
setting the threshold to the nearest 1,000,000)
or more;
(B) the last day of the fiscal year of the
issuer following the fifth anniversary of the
date of the first sale of common equity
securities of the issuer pursuant to an
effective registration statement under this
title;
(C) the date on which such issuer has, during
the previous 3-year period, issued more than
$1,000,000,000 in non-convertible debt; or
(D) the date on which such issuer is deemed
to be a ``large accelerated filer'', as defined
in section 240.12b-2 of title 17, Code of
Federal Regulations, or any successor thereto.
(b) Consideration of Promotion of Efficiency, Competition,
and Capital Formation.--Whenever pursuant to this title the
Commission is engaged in rulemaking and is required to
consider or determine whether an action is necessary or
appropriate in the public interest, the Commission shall also
consider, in addition to the protection of investors, whether
the action will promote efficiency, competition, and capital
formation.
* * * * * * *
MINORITY VIEWS
H.R. 3672 would allow broker-dealers to provide their
clients (i.e., retail and institutional investors) with
``research reports'' prepared by the broker-dealer itself
without it qualifying as a general solicitation. This may give
rise to fewer disclosures about the issuer of the securities
and concerning conflicts of interest as broker-dealers often
earn a commission on the sale of a security, therefore leading
to investors receiving misleading or overly favorable advice
about a particular investment.
Research reports are comprehensive documents prepared by
financial analysts, researchers, or investment firms that
evaluate and provide insights on specific securities (such as
stocks, bonds, or other investment instruments).\1\ These
reports aim to inform and help investors make informed
decisions by offering an in-depth analysis of the financial
health, operations, industry, and prospects of a company or
security. Currently, a research report about a security that is
offered by a broker-dealer qualifies as a ``general
solicitation,'' unless the issuer is an emerging growth company
(EGC).\2\ A general solicitation is a legal term in securities
parlance for formally marketing a security to the general
public.\3\ This bill expands the EGC research report carveout,
which is a temporary 5 year exemption to help new public
companies, to apply to all issuers; in other words, under this
bill, broker-dealers would be able to offer research reports
about any issuer without it counting as a general solicitation.
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\1\Investopedia, ``What is a Research Report? How They're Produced
and Impact'' (Apr. 6, 2021).
\2\Latham & Watkins, ``Client Alert: The JOBS Act: The 50 Most
Frequently Asked Questions'' (accessed Jun. 5, 2025).
\3\SEC, Capital Raising Building Blocks: General Solicitation (Aug.
30, 2024).
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There are several significant issues with H.R. 3672: first,
when something qualifies as a general solicitation, it triggers
certain requirements that include (but are not limited to) the
broker needing to provide investors with a prospectus
containing a detailed description of business, risks factors,
and a discussion of the company's financial condition by
management.\4\ By exempting broker-dealer drafted research
reports from counting as a general solicitation across the
board, this bill deprives investors of important information
and disclosures about the securities subject to the research
report. Second, when these research reports are produced by the
broker-dealer in house, there can be a conflict of interest in
terms of what information they choose to include in these
reports.\5\ This is because broker-dealers are often paid a
commission when their clients buy or sell the security they are
issuing the report on--and therefore is incentivized to draft
the reports in a way that encourages their clients to purchase
those securities.\6\
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\4\SEC, General solicitation--Rule 506(c) (Jun. 28, 2024).
\5\Melanie Senter Lubin, Commissioner, Office of Attorney General,
State of Maryland, Testimony before the House Financial Services
Subcommittee on Capital Markets (April 19, 2023), at 32.
\6\Alexander Thornton, Senior Director, Center for American
Progress, Analysis of April 26, 2023, markup bills, on file, (April 21,
2023).
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Furthermore, Regulation Best Interest (or ``Reg BI''),
which requires a broker-dealer to act in a client's best
interest,\7\ does not apply to a broker-dealer drafted research
report unless the report includes a specific recommendation to
the client to buy the security in the report.\8\ In other
words, a broker-drafted research report does not need to be
drafted with investors' best interests in mind, and could
therefore be written to contain biased or misleading
information in order to encourage the investor purchase the
security that is discussed in the report. Not to mention,
investors will have fewer legal remedies against a broker when
they make investment decisions in reliance on a product not
covered by Reg BI (as would be the case with broker-drafted
research reports under this bill).
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\7\SEC Rule 15l-1 under the Securities Exchange Act of 1934.
\8\From the SEC's Reg BI Adopting Release (SEC Release No. 34-
86031, June 5, 2019): ``General communications that are not
recommendations, such as television, radio, and billboard
advertisements, and research reports that are not directed to a
particular retail customer, are not subject to Regulation Best
Interest.''
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A prior version of this bill was included as a provision in
the large capital markets package H.R. 2799, which did not
receive a single Democratic vote in either the Committee markup
or on the House floor. It was also previously opposed by
multiple investor advocate groups, including AARP, the North
American Securities Administrators Association (NASAA), the
Consumer Federation of America, Americans for Financial Reform,
and Public Citizen.
For these reasons, we oppose H.R. 3672.
Sincerely,
Maxine Waters,
Ranking Member.
Nydia M. Velazquez,
Gregory W. Meeks,
David Scott,
Al Green,
Emanuel Cleaver, II,
Bill Foster,
Joyce Beatty,
Juan Vargas,
Rashida Tlaib,
Sylvia R. Garcia,
Members of Congress.
[all]