The Securities and Exchange Commission would be directed to provide a safe harbor for broker-dealers to publish research on exchange traded funds (ETFs) under legislation reintroduced by U.S. Rep. French Hill (R-AR) on Tuesday.
The Fair Access to Investment Research Act, H.R. 910, would address securities laws and regulations that currently discourage broker-dealers from publishing reports on ETFs, which now number more than 1,500 and hold $2.1 trillion in assets.
Hill and U.S. Rep. Bill Foster (D-IL) first introduced the Fair Access to Investment Research Act during the previous Congress, and the House approved it with a bipartisan vote of 411-6 last June.
“The use of ETFs continues to grow at a rapid rate,” Hill said. “However, this complex market lacks research and information that could greatly benefit consumers. I always will advocate for commonsense legislation that promotes capital formation, removes unnecessary burdens, and improves investor access to information.”
U.S. Sens. Dean Heller (R-NV) and Gary Peters (D-MI) introduced a companion bill in the Senate, S. 327.
Foster said the House measure would create transparency in financial markets that would ultimately benefit consumers. “These funds’ popularity require us to work together to make sure investors have access to the information they need to make sound investment decisions,” Foster said.