LEGISLATIVE UPDATE: House Financial Services Committee Passes Robert Hurt Legislation To Improve Small Business' Access To Capital

Statement

The House Financial Services Committee recently passed the Investment Advisers Modernization Act of 2016 (H.R. 5424) with a bipartisan vote of 47-12. This legislation was introduced by Congressman Robert Hurt (R-Virginia), along with Congressman Juan Vargas (D-California), Congressman Steve Stivers (R-Ohio), and Congressman Bill Foster (D-Illinois). The Investment Advisers Modernization Act of 2016 would update outdated portions of the Investment Advisers Act (IAA), a 76 year-old law, by removing duplicative and burdensome regulations that impose an unnecessary burden on small business' access to capital.

"At a time when economic uncertainty and federal over-regulation are hindering job creation, it is critical that we look for bipartisan solutions to create jobs in our local communities and get our economy back on track. Small businesses are the backbone of our economy, and the ability for these entities to access private capital is imperative for their success and the success of our local and national economies. In order for our economy to grow and for our small business owners to be able to create the jobs that we need, we must remove unnecessary regulations that tie up private capital and create economic uncertainty and put in place policies that encourage investment, innovation, and the entrepreneurial spirit that makes America the beacon of economic opportunity.

"I was pleased to see this bipartisan effort to rid the IAA of outdated, cumbersome regulatory schemes advance through the Financial Services Committee with strong bipartisan support. I look forward to the bill's consideration before the House of Representatives and continued advancement through the legislative process."

Background

· The Investment Advisers Modernization Act of 2016 (H.R. 5424) passed the House Financial Services Committee with a vote of 47-12 as a component to a series of bills designed to help boost economic growth. This bill would amend the Investment Advisers Act of 1940 and direct the Securities and Exchange Commission to amend its rules to modernize certain requirements relating to investment advisers.

· In 2013, Congressman Hurt introduced The Small Business Capital Access And Job Preservation Act (H.R. 1105) which passed the House 254-159. This bill sought to reduce government mandates and unnecessary regulations on private equity firms implemented by the Dodd-Frank law and thereby promote increased access to capital for small businesses in the Fifth District and across the country.

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