House Financial Services Committee passes bills aiming to spur economic growth, rein in Iranian funding for terrorist activities

The House Financial Services Committee approved 12 bills on Thursday, including measures introduced by U.S. Reps. Sean Duffy (R-WI), Tom Emmer (R-MN) and Bruce Poliquin (R-ME).

U.S. Rep. Jeb Hensarling, the chairman of the committee, said that income has fallen, wage growth has stagnated and the number of Americans living in poverty has increased by seven million under the Obama administration.

“I’m confident all of us on both sides of the aisle want that to change,” Hensarling said. “But if we truly want to ignite strong and lasting growth, we must help create more jobs and build a healthy economy. The answer is not more debt, more spending and more regulations from Washington that hinder capital formation. Instead, we need more entrepreneurs and more small businesses on Main Street.”

The House Financial Services Committee focused on finding solutions that balance rules with the urgent need to provide small businesses and entrepreneurs with access to capital.

“We will remove duplicative burdens, reduce costs and support smart regulation that protects investors and maintains orderly and efficient markets – because this is key to economic growth,” Hensarling said.

The Corporate Governance Reform and Transparency Act, H.R. 5311, introduced by Duffy and U.S. Rep. John Carney (D-DE), would increase transparency and oversight of proxy advisory firms that advise shareholders on corporate governance decisions.

“My bill, the Corporate Governance Reform and Transparency Act, which I introduced with my good friend from Delaware, Mr. Carney, will foster accountability, transparency, responsiveness and competition in the proxy advisory firm industry — thereby improving corporate governance and protecting investors,” Duffy said. “The role of proxy advisory firms in the US economy and in shaping corporate governance is of significant national importance.”

Under the bill, proxy advisory firms would be required to register with the Securities and Exchange Commission (SEC), disclose potential conflicts of interest and make methodologies for formulating proxy recommendations available to the public to protect investors.

Emmer’s committee-approved Micro Offering Safe Harbor Act, H.R. 4850 meanwhile, would amend the Securities Act of 1933 to exempt specific micro-offerings requirements.

Under the bill, businesses would not be in violation of the law when making non-public securities offering if each purchaser has a pre-existing relationship with the owner, there are 35 or fewer purchasers and the amount does not exceed $500,000.

Poliquin’s Iranian Leadership Transparency Act, H.R. 5461, would require the treasury secretary to develop a list that would be posted online estimating “funds and assets” held by senior Iranian political and military leaders.